After insisting per week in the past that the January 31 deadline was irreversible, Central Bank Governor Godwin Emefiele, introduced the extension of the foreign money change deadline yesterday. Nigerians now have till Friday, February 10, to submit all previous notes to their respective banks. In the press launch sharing the deadline extension, the CBN stated it has solely collected ₦1.9 trillion ($4.1 billion) in previous notes. The financial institution goals to gather a minimum of ₦900 billion ($1.9 billion) to realize optimum stability. The CBN governor appealed to Nigerians to deposit their legally acquired previous notes on the banks.
Bank site visitors declines after the deadline extension
Nigerians appear to have taken the extension of the deadline as a sign to decelerate on their previous notes submission. While banks labored further hours and thru the weekend to assist the foreign money change course of, all indicators level to the truth that individuals are keen to attend out the brand new deadline. According to reviews from financial institution employees, the site visitors at banks at this time is drastically much less in comparison with yesterday—a Sunday—when the financial institution was full of individuals making an attempt to deposit their cash or swap for the brand new foreign money.
An worker at a First Bank department on the mainland of Lagos instructed TechCabal, “Today is so dull. Yesterday was crazy for a Sunday, and had the deadline not been extended, today would have been worse.” A Stanbic IBTC worker instructed TechCabal, “Once the extension was announced, people left the banking hall to resume their business operations using the old notes.”
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Cash crisis hits
The about-turn isn’t a surprise, as there’s a rising shortage of money—each new and previous notes. At many ATM queues throughout Lagos, there are lengthy queues, even throughout moments when the machines don’t have money. There are reviews on Twitter that some POS brokers are charging exorbitant charges for the withdrawal of recent notes. Some are reportedly charging as a lot as 10% of the quantity withdrawn.
All 5 POS brokers on the mainland of Lagos interviewed by TechCabal sat idly of their stalls, turning away clients who got here to make withdrawals as they themselves had no money.
“I know how many customers I have lost this morning because I cannot access the money in my bank. The banks are refusing to give us cash, new or old, and the ATMs that have the new notes are overcrowded. If I see anyone that can give me either of the notes, I will definitely buy them and recover the cost of them by increasing the amount I charge my customers who want to withdraw. I know they won’t mind paying, ” stated one POS agent.
They haven’t been in a position to withdraw cash over-the-counter as banks have stopped issuing cash that method. ATMs, the one method to get money, are overcrowded and unable to satisfy the demand.
Speaking concerning the crowded ATMs, the First Bank worker instructed TechCabal, “Our ATM is crowded despite the fact that it is not dispensing cash.” People are so determined that they’re giving their ATM playing cards and pins to safety guards at banks to allow them to assist them withdraw as quickly as the ATM begins dishing out. It is each dangerous and unfair.”
Both financial institution staff verify that the brand new notes are scarce. “The ATMs are the only designated channel for withdrawals, but banks are really not getting a lot of new notes allocated to them from the CBN,” stated the Stanbic IBTC financial institution worker. Emphasising the identical level, the First Bank worker asserted that “Since this whole thing started, they have not given us more than 20 million.”
The financial institution worker from Stanbic IBTC financial institution and one other banker from United Bank of Africa (UBA), suppose the deadline extension was pointless. “Nigerians have been compliant and coming in to deposit their old notes, even market women. I think the CBN governor is just responding to the pressure from the top 1% and political agencies because the common man has been compliant,” the feminine UBA financial institution worker instructed TechCabal.
…. to be continued
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