With just one week left before the January 31 deadline for old Naira notes to cease being legal tender, the Central Bank of Nigeria (CBN) and commercial banks appear at odds over circulating new notes. Financial Vanguard found that banks are struggling to comply with the CBN directive to stop dispensing old notes and ensure all ATMs are loaded with new notes.
Bank officials explained that limited supply of new notes has forced them to continue dispensing old notes to meet customer demand. A CBN official noted that some banks might be hoarding new notes for strategic advantage or privileged customers, prompting the apex bank to enforce ATM disbursements.
Customers Call for Deadline Extension
Frustrated customers have called on the CBN to extend the January 31 deadline, citing difficulties in accessing new notes. Many observed that most ATMs are either out of cash or dispensing a mixture of old and new notes.
ATM Performance Across Banks
- FirstBank: On Lagos Island, most ATMs were empty on Thursday, with only one dispensing new notes by Friday. Branches like Acme Road, Ikeja, Ikotun-Idimu, and Akowonjo had long queues due to limited supply. Withdrawal limits of N40,000 per customer were imposed.
- Union Bank: In Tinubu Street, Lagos Island, only one of three ATMs dispensed new notes. Branches at Ikotun and Agidingbi had mixed availability, with some machines dispensing old notes.
New Generation Banks: Mixed Performance
Some new generation banks in Amuwo Odofin and Apapa were dispensing new notes, while others still issued a mix of old and new notes. Branches at Igando, University of Lagos, Bariga, Alausa, and 7Up continued with both currencies.
GTBank and Wema Bank Dispense Old and New Notes
- GTBank: Branches at Surulere, Lawanson, Ojuelegba, and Ijeshatedo dispensed a mix of old and new notes, with higher withdrawals receiving old notes.
- Wema Bank: Surulere branches largely dispensed old notes, while some ATMs dispensed new notes.
Abuja ATMs: Majority Still Dispensing Old Notes
In Abuja, many ATMs continued to dispense old notes. Branches at Banks Avenue, Area 3, Garki, and others reported limited supply of new notes, despite CBN monitoring. Some ATMs switched between old and new notes during the day.
Officials Monitoring ATMs Nationwide
CBN dispatched officials to monitor bank ATMs across Lagos and Abuja. Deputy Director Seyi Badmus said:
“All banks have been adequately supplied with new notes. The monitoring committee will ensure that banks fully comply with dispensing new notes.”
Warning to Banks
Kofo Salam-Alada, Director of Legal Services at CBN, emphasized that the bank would toughly sanction any bank continuing to load ATMs with old notes. He explained that CBN is issuing new notes daily and urged banks to collect them to ensure fair access to customers.
CBN’s Objective
CBN aims to place new notes in ATMs to prevent hoarding by individuals and ensure equitable distribution, rather than over-the-counter disbursement that favors certain customers.
