Old Notes: Confusion, as banks carry out CBN directive

Open branches weekend, expect clearer directive todaylPoS operators ignore CBN warning on selling banknoteslExperts in divergent view on implementation, impact

The banking industry was in disarray over implementation of the directives of the Central Bank of Nigeria, CBN, on collection of the old banknotes in the denominations of N500 and N1,000 during the weekend.

The apex bank was said to have directed the banks to collect the old banknotes which it had declared non-legal tender with effect from February 10,2023, prompting the banks to not only issue mails to customers to come and deposit their old notes but actually began to collect the old notes. The commercial banks also sent out emails to their customers on Friday, re-opening their branches last Saturday after suspending weekend banking previous weekend with the deadline of old notes acceptance.

However, with a statement from the CBN late Friday denying the alleged directive to collect old notes, some of the banks suspended the collection of old notes while others did. Also some of the banks failed to re-open while a few did.

Meanwhile, despite President Muhammadu Buhari’s directive that the CBN should re-circulate the old N200 notes, the operators in the financial system weekend indicated that the situation will persist throughout this week into next two weeks, and may only begin to ease after the elections.

The anger and frustrations among banks customers across the country continued as many of them are locked out of bank premises, just as most Automated Teller Machines, ATMs, remain without cash.

Only branches located in complexes such as hotels, or large malls with tight security operated freely. Almost all stand-alone branches were locked to customers.
Some banks sent armed security personnel to their gates to either turn back customers by telling them that the bank is not open for customers or screen customers who had other transactions apart from withdrawing cash.
However, others completely closed for fear of being attacked for failing to provide the new Naira notes.

Besides cash deposits, other customers were either making transfers or cheque deposits.

For some banks, their ATM galleries were shut to the public.
Financial Vanguard also discovered a surge in the number of customers requesting debit cards and those seeking assistance to sign up to the banks’ Mobile Apps as the customer care sections were overwhelmed with crowds.
Major markets and shops in Lagos shut down activities last Friday due to crisis emanating from inability to spend the old N500 and N1,000 by Nigerians still in possession of the old naira notes.
Market traders were divided as some traders were collecting the old N500 and N1,000 at a cost by increasing the prices of their wares while others rejected them.
As a result of the confusion among Nigerians, most commercial drivers parked their vehicles, making commuters stranded at the bus stops, even as available transporters increased fare prices.