The Central Bank of Nigeria (CBN) has implemented new measures to curb multiple debit card withdrawals and has threatened stiffer sanctions against violators. This decision comes amid ongoing issues related to the withdrawal of old naira notes, with significant commotion reported at ATM points. Recent developments indicate that the Economic and Financial Crimes Commission (EFCC) is preparing to target racketeers dealing in the newly redesigned naira notes in major commercial cities, including Lagos, Port Harcourt, and Kaduna. On Tuesday, the EFCC announced the arrest of members of a currency racketeering syndicate operating in the Federal Capital Territory, Abuja, during an operation aimed at halting illicit currency trading.
The EFCC’s findings revealed that currency hawkers are thriving in commercial centers in Lagos, Port Harcourt, and Kaduna. This crackdown follows similar actions taken by the Department of State Services (DSS) against currency traders who have been exploiting the sale of newly redesigned notes. The EFCC has vowed to extend its operations nationwide until all syndicates involved in this illegal trade are dismantled. The agency also urged financial market operators to comply with CBN guidelines, emphasizing that some suspects had admitted to colluding with unscrupulous officials from Money Deposit Banks.
In a related development, the CBN has directed commercial banks to cease the payment of old notes via ATMs or over-the-counter transactions. During a recent meeting with bank officials, CBN Governor Godwin Emefiele emphasized the need for strict adherence to these guidelines, which include limiting the release of new notes to ATMs only. Corporates requiring cash are to receive only old N100 notes and below. Emefiele also instructed EFCC and Independent Corrupt Practices and Other Related Offences Commission (ICPC) officials to inspect bank branches over the next two weeks to ensure compliance.
Customers in Lagos have expressed frustration over their inability to withdraw old naira notes, both at ATMs and over the counter. Many reported long queues and malfunctioning machines, leading to complaints that the ban on over-the-counter transactions exacerbates their difficulties. Some customers criticized the decision as punitive, arguing that it fails to address the underlying issues of cash availability. Others, however, supported the move, citing the need to phase out contaminated notes and discourage hoarding.
As of the latest reports, many ATMs in Marina were not dispensing cash, and customers were left dissatisfied with the limited denominations available. Some bank officials acknowledged the challenges posed by the CBN’s directive, stating that they were unable to meet customer demand for higher denominations. In various locations, customers reported being unable to access cash or facing technical difficulties with point-of-sale (PoS) transactions.
The CBN has also uncovered mismanagement of new naira notes by a commercial bank in Ogun State, which has led to accusations of sabotage against banks for failing to make the new notes available. CBN officials have stated that they will impose sanctions on banks that do not comply with directives regarding the issuance of new notes. Monitoring teams have been dispatched to ensure adherence to these guidelines, and the use of super agents for exchanging old notes for new ones has proven effective.
In Kano, compliance with the CBN’s directive appears to be improving, although some banks still struggle with cash availability. Customers have reported long wait times and inadequate responses from bank officials. A coalition of civil society groups has threatened to picket any bank that fails to provide access to new naira notes, accusing banks of diverting funds to preferred customers rather than the general public.
Finally, CBN Governor Emefiele has appeared before the House of Representatives to address the ongoing crisis related to the naira redesign and currency swap policy. He expressed optimism about the potential benefits of the policy, including a stronger naira and reduced inflation. However, he faced scrutiny from committee members regarding the adverse impacts of the policy on the populace and businesses. Emefiele assured the committee that the CBN would continue to monitor the situation and provide necessary support to those affected.
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