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Cash Shortage Persists As Banks, Businesses Comply With CBN’s Directive On Old Naira Notes

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Commercial banks in Lagos have started disbursing the old naira notes to customers at their various automated teller machines (ATMs) terminals and over the counter.

The banks were also observed to be accepting deposits of the notes — a development which is in compliance with the latest directive of the Central Bank of Nigeria (CBN) on the naira redesign policy.

Yielding to pressure to obey a the supreme court judgement, the CBN had said the old N200, N500, and N1,000 notes remain legal tender until December 31, 2023.

It also directed banks to comply with the court order by issuing and accepting the old notes.

“…consequently, all concerned are directed to conform accordingly,” the apex bank had said.

Checks by TheCable on Wednesday show that some commercial banks in Lagos have started to comply with the directives from both the court and the regulator.

It was observed that an Access Bank branch in Marina area of Lagos dispensed and collected the old notes from customers.

A visit to branches of Access Bank and Wema Bank in Ebute Metta, Lagos, also showed that the banks had started dispensing the old notes over the counter and via ATMs.

At Stanbic IBTC in Abule Ado, customers were paid over the counter, with a cap of N20,000; while Zenith Bank, in the same location, allowed a withdrawal of only N2,000 per transaction via ATM.

More so, customers thronged ATMs at branches of Sterling Bank, Zenith Bank, and the United Bank for Africa (UBA) in the Ikorodu axis of Lagos, to withdraw cash.

“They are dispensing,” a customer said, tersely.

CODES FOR DEPOSITS

While banks were seen to be dispensing the notes, deposits of the old N200, N500, and N1,000 were also accepted from customers.

However, TheCable observed that for deposits to be made, customers are still required to generate a CBN reference code — a process launched in February for the apex bank’s currency redemption exercise.

At all the bank branches visited by TheCable reporters, customers were mandated to generate the reference code before they could deposit their old naira notes.

TRADERS ACCEPTING OLD NOTES GRADUALLY

When it comes to the theatrics of the naira redesign policy, one major problem the CBN’s fresh directive seems to be addressing is the rejection of the old notes by traders and business owners, as the TheCable’s findings show.

Narrating his experience, Musa Ciroma, a businessman who had collected the old notes from the Access Bank branch ATM at Marina, said he had bought petrol with the money and it was accepted.

Motorists and traders in the vicinity also accepted the currency notes. Most businesses in Ikorodu have also started transacting with the old notes.

“Everyone is accepting the old notes. Traders started accept since yesterday [Tuesday],” a tomato seller in Ikorodu, said.

In Alaba Suru market, several traders were also willing to accept the new notes at the time of visit.

A grocery store owner in Satellite Town, who simply identified as Mama Twins, said she started accepting the notes since the apex bank had told them that they could transact with it.

“Since CBN has announced that we could collect the amount, I have started collecting it,” she said.

THE SCEPTICS

But some traders are still sceptical about collecting the old naira notes in spite of the CBN’s directive.

A student, who simply identified as Kunle, said some traders in Fagba, Lagos, were yet to fully embrace the acceptance of the old notes as legal tender.

“I was able to buy pepper from an ‘aboki’ seller. But other traders that sell petty items in the area did not collect the old notes,” Kunle told TheCable.

Similarly, some traders in various markets in the satellite towns of the federal capital territory (FCT) are also unsure about accepting the old naira notes.

According to NAN, some of the traders at Karu, Nyanya, and Mararaba Markets on Tuesday, said they would not accept the notes for any transaction until further notice.

“I am scared of collecting the old notes because I feel it will be rejected by the people I buy my goods from,” Beatrice Ibe, a tomatoes dealer at Nyanya Market, said.

“Yes, I heard that the CBN has directed that we should start to spend and accept the old notes but what about the people in the villages?

“Have they also heard about it? I doubt it.

“I am waiting for other traders in the market to start collecting or accepting the old notes before I will collect from my customers.”

Alphonsus Iguru, another trader at Mararaba Market, said he had some of the old N500 and N1,000 notes but yet to spend them.

Iguru appealed to the CBN to improve its sensitisation on the directive; saying that many people were yet to come to terms with the news.

“I have some of the old notes before but nobody agreed to collect them from me,” he said.

“We do not know what the CBN will say again tomorrow, I don’t want to collect from people now and tomorrow, it will be another story.”

CASH SHORTAGE — A PERSISTING CHALLENGE

Meanwhile, some banks at the time of visit were not dispensing the currency notes due to lack of cash.

An Access Bank branch in the Abule Ado area of Lagos, did not pay customers, citing unavailability of cash.

Yesterday, customers were able to withdraw N20,000, from the bank’s ATM. But they said the bank stopped issuing the old notes over the counter at about 1pm.

A report by The Punch on Thursday, suggested that several banks had run low on old notes as the scarcity of the new ones persist.

Quoting “a top industry executive close to the CBN” the report said the apex bank may not return the old notes to banks because it would reverse gains on its cashless policy.

“We don’t know if the CBN has destroyed the old notes in its custody or not. As we speak, we don’t also know if it will release the old notes to banks again but the truth is banks don’t have much of these old notes in their vaults. Sadly, customers are not depositing much again,” the managing director of a tier-2 bank was quoted as saying.

 

Credit: TheCable

BIG STORY

Tanzania Announces Outbreak Of Deadly Marburg Virus Disease (MVD), Same Virus Family As Ebola

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Tanzania has announced its first outbreak of the deadly Marburg virus disease (MVD), after five fatalities and three further cases were reported at a hospital in the country’s north-west Kagera region.

Through contact tracing, approximately 161 people have been identified as at risk of infection, according to the World Health Organization (WHO). The government has deployed an emergency response team to the area and neighbouring countries have stepped up surveillance. No cases have yet been reported outside Kagera.

“The efforts by Tanzania’s health authorities to establish the cause of the disease is a clear indication of the determination to effectively respond to the outbreak,” said Matshidiso Moeti, WHO’s regional director for Africa. “We are working with the government to rapidly scale up control measures to halt the spread of the virus and end the outbreak as soon as possible.”

Patients displaying symptoms of the disease were first detected last week in two Kagera villages, according to a health memorandum on Tuesday by the Tanzanian health minister Ummy Mwalimu.

MVD was first discovered in 1967 in Marburg and Frankfurt in Germany and Belgrade, Serbia. It is from the same “virus family” as Ebola and causes a severe hemorrhagic fever, while fatality rates have varied from 24% to 88%. There have been several outbreaks since its discovery, with the worst being Angola in 2004-2005, where there were 252 cases and 227 deaths.

The virus is initially transmitted to people from fruit bats, and then from person to person through body fluids or contaminated objects. Family members and health workers are particularly vulnerable to infection.

Symptoms of the disease can range from fever, nausea and rash at the onset, to jaundice and severe weight loss as the disease progresses. It has an incubation period of up to 21 days.

There are no vaccines or treatments for the virus, but according to the Centers for Disease Control and Prevention, alleviating symptoms by rehydration or managing the patient’s blood and oxygen levels, can increase the chances of survival.

The Africa Centres for Disease Control and Prevention (Africa CDC) is also supporting efforts to contain the outbreak. Tanzania is battling the virus for the first time, just a month after Equatorial Guinea confirmed its first case.

“These emerging and re-emerging infectious diseases are a sign that the health security of the continent needs to be strengthened to cope with the disease threats,” said Ahmed Ogwell Ouma, the director of Africa CDC. “We urge members of the public to continue sharing information in a timely manner with the authorities to enable a most effective response.”

Tanzania’s health ministry has called on citizens to take general precaution and follow health directives until the situation is brought under control.

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Tinubu Jets Out To France In Preparation For Inauguration As Nigeria’s 16th President

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Indications that countdown to the swearing-in of 16th president of Nigeria and preparation for the ceremony is in full gear, the President-elect, Bola Tinubu, has left Nigeria for France to start engaging needed hands and foreign investors that would make tasks ahead easier for him as he aims to hit the ground running on good notes immediately after May 29.

It was gathered that Tinubu’s trip to France would enable him to share quality time with his team in studying how his government would be able to address issues of insecurity, revamp the economy, engage younger people, and also restore unity in the country.

The Guild learnt that the president-elect has lists of engagements that would preoccupy his short stay in Paris while on other hand, his also expected to be fully involved in preparation for his inauguration back home in Nigeria.

Whereas, findings by The Guild indicated that Lagos State former governor’s trip to France may not yet be disclosed to public and large number of his associates who may have been seeking to see Tinubu for political gains after governorship election.

Speaking to a female aide that accompanied Tinubu on the trip, she told The Guild that campaign was over and that the president-elect needed quality time with his team to study Nigeria’s challenges and know how they could be tackled decisively.

They indicated that the task ahead of Tinubu is huge and needed special attention in dealing with the problems on ground and that the concentration cannot be achieved if the president-elect remains in Nigeria till inauguration day.

Other sources on Wednesday explained that Tinubu’s team has lists of engagements for the president-elect to go through on daily bases and throughout the period of time he would be staying in France, including meeting with experts and both local and foreign investors.

As for the 2023 electoral crisis, another source stated that Tinubu had concluded plans to meet political leaders and their supporters, especially those that were not satisfied with the 2023 presidential poll outcome, to address all issues on the ground and to be able to forge ahead and bring everyone irrespective of their tribe and faith together.

While the President-elect was considering plans to unite all aggrieved candidates, they individually approached the Presidential tribunal to demand that the presidential election be either canceled or order a rerun between him and the President-elect, Bola Tinubu.

The candidates, including the Peoples Democratic Party (PDP) candidate, Atiku Abubakar, and his Labour Party (LP) counterpart, Peter Obi, also suggested to the tribunal that they should be declared winner of the February 25 poll, arguing that the president-elect as not the choice of the people.

However, Tinubu has appealed to Atiku, Obi, and other aggrieved candidates to accept the outcomes of the poll and join him to build a Nigeria that will be prosperous for everyone irrespective o their status in the country.

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BREAKING: Labour Party’s Alex Otti Wins Gubernatorial Election In Abia State

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Labour Party Candidate, Alex Otti has won Gubernatorial Election in Abia State.

It was gathered that Alex Otti has claimed that Labour Party won by landslide but PDP is trying to manipulate Abia Governorship election results.

The governorship candidate of the Labour Party in Abia state, Alex Otti, has raised an alarm alleging manipulations of original polling booth results by the ruling People’s Democratic Party during the collation of results at some local government councils across Abia state.

Speaking to Channels Television at his country home in Isiala Ngwa Local Government Area of the state, he called on the Chairman of the Independent National Electoral Commission (INEC), Mahmood Yakubu, to bring the leadership of the electoral body in Abia state to order so they do not subvert the will of the people.

“Virtually all the results that have been uploaded and released, Labour Party won by a landslide.,” Otti insisted.

“Unfortunately, the PDP government has refused to allow some of the results to stand, and they are doing this with the active connivance of some compromised INEC staff and security agencies.”

“The local governments involved are Obingwa where the outgoing governor comes from, Osisioma, Aba North and Aba South where we won overwhelmingly. Obingwa is a very interesting case because, in the majority of the wards in active connivance with INEC, the BVAS was not used.”

Otti further alleged the PDP’s scheme was to flood the collation centre with counterfeit results.

“So they are making efforts to push fake results to the collation centre in Obingwa local government.”

He also called on the Inspector General of Police to intervene as quickly as possible to prevent any breakdown of law and order in the state if the will of the people is subverted.

“I want to use this opportunity to call on the Federal Government and particularly the INEC Chairman to ensure that the right thing is done in Abia State. INEC had indicated clearly that the BVAS will be used for voting in this election and BVAS was used,” he said.

“I expect that any result that is not coming out from BVAS accreditation will not be accepted. So, I like the INEC Chairman to prevail on the REC and all other officials of INEC to give peace a chance and do the right thing.”

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