Confusion As Banks Resume Issuance Of Old N500, N1,000 Notes To Customers

Some commercial banks have resumed selective issuance of the old N500 and N1000 denominations to the public.The move, according to industry sources may be as a result of Supreme Court judgement, which extended the validity of the banknotes till December 31, 2023.

But confusion has continued to trail the development which is typified by selective service by some banks and rejection by some customers.

MetroBusinessNews (MBN) however, gathered that the absence of a statement by either President Muhammadu Buhari or CBN had resulted in the ongoing uncertainty and confusion, as businesses in Abuja, Lagos and other places continued to reject the old denominations.

MBN had earlier reported that the silence by the Federal Government and the Central Bank of Nigeria (CBN) has continued to heighten sufferings as the Automated Teller Machines (ATMs) are still deserted for lack of cash, while customers who have friends in some of the banks are allowed into the halls through the back doors.

Our investigations further showed that reluctance to collect the old notes by some customers is as a result of partly, history of disobedience to implement court judgements by the present administration.

The development has continued to widen the trust deficit between the government and the governed.

Since the Supreme Court’s ruling, no further clarification or directive had been issued by the central bank, a situation that has caused the banking public to take precaution with regard to the old notes.

Although, some banks such as UBA and Access branches paid out the old banknotes in Abuja and Lagos, the staff confirmed that they are yet to receive official communication from CBN, a development that is fueling confusion.

However, scarcity of cash remained evident across the Federal Capital Territory (FCT), Lagos and major cities as practically none of the Point of Sale (POS) agents had cash at the time of the checks.Findings further revealed that many POS operators resorted to online money transfers and did very little cash exchanges.
ALSO READ:CBN, FG Under Scrutiny Over Silence On S/Court Ruling On Naira Redesign
Analysts, however, believed that cash availability and circulation would greatly improve in the coming days following the apex court’s decision.

They also expressed the hope that the conclusion of the general election next week might lead to some monetary policy decisions that would improve cash circulation in the economy.

They were however quick to add that providing clarity and direction on the court’s ruling would quell apathy on the part of the banking public.