CBN may phase out new naira notes as scarcity persists

Nigerians are wondering what happened to the newly redesigned naira notes introduced on December 15, 2o22. The scarcity of the new notes at ATMs and across the counter has left many speculating that the Central Bank of Nigeria (CBN) may be rethinking its poorly executed naira redesign policy.

The scarcity of new naira notes leads to wild speculation among Nigerians on the decline of new naira notes.

The new notes began to steadily decline in circulation after the apex bank capitulated to a Supreme Court order which rendered the withdrawal of the old notes invalid.

Many believe that due to the pressure on the CBN to ease the cash crunch, which nearly crippled the economy between February and early March this year, it has decided against reprinting the new notes.

An anonymous banker with one of the new-generation banks, told Agenda papers that the absence of the new notes needs to be explained to bankers and customers. He said he could not recall the last time the apex bank issued the new notes to his bank. He said “We are surprised as many of our customers. Imagine the pains Nigerians went through because of these new notes, and now they are rarely in circulation.” According to the banker, he believes that CBN did not print enough of the new notes, and perhaps, Nigerians are hoarding them, too. “The thinking among bankers is that CBN did not print enough of the new notes, and so the available few are being hoarded by Nigerians” When asked if he thought the scarcity of naira notes would return after the December deadline given by the Supreme Court, he said the incoming government might not allow it.

A trader in the Ipodo market in Ikeja, Comfort Babajide, said she believes CBN made a mistake with its policy and has tactically withdrawn the new notes. Babajide said: “Why are the new notes not available? I am sure that CBN is withholding the new notes out of shame because of what Nigerians went through, or they may be phasing them out entirely. Despite the relative abundance of old naira notes, Nigerians are still apprehensive the scarcity might return after December. “We are counting down to December to see if the scarcity would return,” Babajide said.

All efforts to get CBN’s Director of Communication, Isa Abdulmumin, to comment on the issue were unsuccessful as his phone line was engaged. He did not respond to WhatsApp and text messages sent to his number.

It will be recalled that Nigerians suffered untold hardship for three months during the failed transition from old naira notes to new notes. Many lost their lives, business crumbled, economy nose-dived and many families suffered dislocations and disintegration as a result of that.

As the December deadline is approaching many Nigerians are apprehensive of what fate will hold for them as polls conducted indicated that many people have not set eyes on the new naira notes since the month of March that the supreme Court gave judgement for continued usage of the old naira notes.