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Business News of Wednesday, 1 November 2023


CBN may phase out old 200, 500, 1000 naira notes by December as cash scarcity returns in 2 states

Naira notes Naira notes

Cash scarcity has reportedly returned in some parts of the country as the December 31, 2023, deadline for using the old N200, N500, and N1000 banknotes approaches.

Some parts of the country is reportedly experiencing cash scarcity as the December 31, 2023, deadline for using the old N200, N500, and N1000 banknotes approaches. reports that the Supreme Court in March 2023 ordered that the old naira notes would remain legal tender alongside the redesigned ones until December 31, 2023.

This directive was given following nationwide cash shortages and protests leading to the February 2023 elections.

Naira shortage

DailyTrust reports that two months before the deadline, residents of Kano and Borno states are already facing cash shortages.

Several Point of Sales(POS) and Bureau de Change(BDC) operators captured in the report complained about cash shortages.

They also noted that it is difficult to get cash from banks' Automated Teller Machines (ATMs) around the states.

One of POS operators quoted said: “As a PoS operator, I can’t give more than N20,000 to individuals because most banks only allow us to have N40,000 to N50,000 daily. I learnt that only owners of corporate accounts can get N150,000 to N200,000.

"If you go around town, you will find out that most of the PoS centres now have less cash compared to some weeks ago”

All this is happening despite statistics obtained from the Central Bank of Nigeria(CBN) showing that money supply(M3) in the country is at an all-time high of N67 trillion as at the end of September 2023.

CBN old naira notes reached out to Isa Abdulmumin, CBN's acting director of the corporate communications department, but as of the time of filing this report, he has not responded to calls and text messages sent to his phone number.

The CBN has just two months left to make a decision on phasing out the N200, N500, and N1000 banknotes.

How CBN will go ahead with the previous management plans to phase out the old naira remains to be seen, as new naira notes are not well-circulated.