CBN has warned commercial banks not to dispense old naira at ATMs

Nigeria’s central bank CBN has warned of the consequences of commercial banks filling ATMs with old banknotes that will no longer be legal tender on January 31st.

On Thursday in Lokoja, the provincial capital of Kogi, Deputy Director of Foreign Exchange Operations, Dr. Rekiat Yusuf said that not only would the market be informed about the redesign of the Naira banknote, but that all ATMs still holding old money would be closed and the existing bank would be sanctioned accordingly.

She urged traders to use the January 31 deadline to visit their bank or, if they don’t have one, visit any bank to exchange their currency for the new design 200, 500 and 1000 banknotes.

“Banks have no reason to keep old banknotes, and Apex Bank has provided enough banknotes of the new design for distribution to the public,” she added, adding that those caught will be punished accordingly.

READ MORE: Naira Redesign: Nigeria’s Pre-Election Cash Surge Shrinks

Dr. Yusuf explained the reasons for the revision of the memorandum, including the limitation of terrorism, kidnapping for ransom, and inherent corruption.

Other reasons identified were the abundance of money outside the banking system fueling inflation and the need to restructure the currency in line with international best practice every 5-8 years.

Alhaji Ahmed Sule, manager of the state branch of CBN in Kogi, also urged traders to accept the new currency before the January 31 deadline.

According to him, Lokoja is the gateway to many states where a lot of business transactions related to currency exchange take place, so active work should be started to raise awareness.”

The Apex bank also embarked on the inspection of some Automated Teller Machines within the metropolis to ensure that the machines are stocked with the newly redesigned notes.

 

 

 

 

 

 

 

 

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