The Nigeria’s financial sector witnessed deep confusion on Friday over the Central Bank of Nigeria’s inconsistent directives.
A few hours after reports surfaced that CBN had authorised commercial banks to collect old N500 and N1,000 notes, the apex bank issued a denial.
This is after top banks like Ecobank, First Bank and UBA had asked customers to come and deposit based on first order given by CBN.
While denying the earlier order credited to it that banks should collect old N1000 and N500 notes, CBN declared that commercial banks that do that, do it at their own risk.
Quoting a top management staff of the CBN, PUNCH had earlier reported that the apex bank had ordered deposit banks to collect the old notes.
The statements also added that the banks would open on Saturday to collect up to N500,000 of the old notes each from customers.
CBN said in the statement, “The attention of the Central Bank of Nigeria has been drawn to some fake and unauthorised messages quoting the CBN as having authorised the Deposit Money Banks to collect the old N500 and N1,000 Banknotes.
“For the avoidance of doubt, and in line with Mr. President’s broadcast of February 16, 2023, the CBN has been directed to only reissue and recirculate the old N200 banknotes and this is expected to circulate as legal tender for 60 days up to April 10, 2023.
“Members of the public should therefore disregard any message and/or information not formally released by the Central Bank of Nigeria on this subject.”
Osita Nwanisobi, Director Corporate Communications, had earlier confirmed the development to journalists.
Meanwhile, commercial banks had issued public notices instructing customers to bring old notes beginning Saturday before CBN worsened the situation with their denial.
“Dear Valued Customer,
This is to inform you that our branches shall receive old N500 and N1000 notes of up to a maximum of N500,000 (Five Hundred Thousand Naira) after registration on the CBN portal. Please note that deposits of more than N500,000 (Five Hundred Thousand Naira) should be taken to the nearest CBN location.
“In addition, our branches will be open tomorrow, Saturday 18 February 2023 to receive old notes,” a notice issued by one bank read.
Despite the denial, the website of CBN as of 7:22 pm on Friday, showed that the CBN still has a form for depositors of old N1000 and N500 notes, indicating depositor could choose a commercial bank to deposit their money.
Recall that following President Muhammadu Buhari’s directive that Nigerians return old N500 and N1000 notes to the Central Bank of Nigeria (CBN), many people flocked to the apex bank’s offices across the country on Friday.
People began lining up as early as 1 a.m. in front of the CBN office in Marina, Lagos, where there was an uncontrollable crowd.
Later, people were asked to return to their respective Deposit Money Banks (DMBs) to store old notes after the exercise appeared to get out of hand and bank officials found it difficult to control the crowd that kept growing with time.
The Central Bank of Nigeria last October announced that it was redesigning the N200, N500 and N1,000 banknotes, stating that old banknotes would no longer be accepted as legal tender from January 31, 2023.
This has led to avoidable suffering as a result of the acute scarcity of the newly resigned N200, N500 and N1,000 notes.
Many Nigerians’ lives and livelihoods are being disrupted daily due to the paucity of new Naira notes arising from the recent Naira redesign policy of the Central Bank of Nigeria and fuel scarcity and price hikes across the country.
The post How CBN Plunged Financial Sector Into Confusion appeared first on www.lagosian.news.