Banking
Customers Frustrated as Banks Stop Dispensing Old Naira Notes
By Dipo Olowookere
Some customers were left frustrated as a few of the commercial banks visited by Business Post on Monday morning to monitor the extension of the currency swap announced by the Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, on Sunday, were unable to pay those who came for cash withdrawals.
Yesterday, after a visit to President Muhammadu Buhari in his hometown of Daura, Katsina State, Mr Emefiele said the deadline for the exchange of the old Naira notes for the new ones has been pushed forward from January 31 to February 10, 2023.
He explained that it was to allow Nigerians more time to swap their old currency notes of N200, N500, and N1,000 for the newly redesigned denominations.
The extension followed calls by several persons as they complained of scarcity of the new Naira notes, as banks were still dispensing the old notes even a few days before the deadline.
This morning, this reporter visited a few financial institutions in Lagos to monitor the situation, and it was observed that some customers could not withdraw cash from the banks.
At the banking hall of one of the tier-one lenders in the Akowonjo area of Lagos State, the cashiers were not paying customers who came to take their funds.
“I could not get cash from the bank because I was informed that there were no new notes to pay me with, as the central bank has directed them not to pay customers with the old notes,” one of the customers, who identified himself as Mr Idowu Sodunke, said.
At a branch of another bank on Idimu Road, Lagos, a customer, who identified herself as Mrs Bose Kalejaiye, said, “The bank could not pay me my money. They claimed they were short of the new Naira notes. When I told them to pay me in lower denominations, they also could not pay me. We are in a deep mess in this country.”
In the Ikotun area of Lagos State, the banks in the vicinity were crowded as customers, especially POS operators, rushed to withdraw their funds for business after the extension.
They had earlier deposited the cash ahead of the deadline during the weekend, but when they approached the banks to withdraw their money, the banks could not honour their requests, leaving some of them frustrated.
“I don’t have funds to do my business today. I was here yesterday (Sunday) to deposit some cash. It was after I deposited the money that I heard of the extension. I quickly came here this morning to take my money back, but I was told there was no cash to pay me.
“I think the issue is that the banks have stopped paying people with the old notes. I don’t know what to do now,” a POS operator, who identified herself as Rukayat Salami, told Business Post.
An employee of a commercial bank, who begged not to be named, hinted that the CBN directed banks tp stop dispensing old Naira notes to customers because of a directive of the CBN.
This newspaper observed that within the premises of some of the commercial banks visited today, some POS operators, like Ms Salami, resorted to collecting cash from depositors and transferring the money into their accounts so as to have enough cash to do business with at their terminals.
By Modupe Gbadeyanka
About N3.6 trillion has been repaid to the Central Bank of Nigeria (CBN) by the Asset Management Corporation of Nigeria (AMCON) since its inception in 2010.
This information was revealed by the chief executive of AMCON, Mr Gbenga Alade, during a media parley to update the press on the activities of the agency.
Mr Alade said at the moment, the organisation still owes the central bank about N3 trillion for toxic assets of banks in the country.
He praised the organisation for its asset recovery drive, stressing that when compared with others across the world, Nigeria has done well.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
“Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent.
“Only the Korean Asset Management Corporation (KAMCO), South Korea, has achieved more recoveries than AMCON, with about 100 per cent. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate.
“Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany.
“So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realized,” Mr Alade stated.
On the financial performance of AMCON, he said last year, the firm posted a revenue of N156.25 billion and operating expenses of N29.04 billion, while for the 2025 fiscal year should be a revenue of N215.15 billion and operating expenses of N29.06 billion.
By Modupe Gbadeyanka
One of the non-interest banks in Nigeria, The Alternative Bank (AltBank), has opened a new branch in Effurun, Delta State.
The new office will serve the Edo-Delta region and provide purposeful banking and real financial empowerment for individuals, entrepreneurs, and businesses, a statement from the firm stated.
The lender disclosed that the Effurun branch is a bold move in its mission to reshape banking in Nigeria.
The launch was graced by key dignitaries, including the Ovie of Uvwie Kingdom, Emmanuel Ekemejewa Sideso Abe I; the Chairman of Uvwie Local Government, Anthony O. Ofoni, represented his vice, Andrew Agagbo; and the Special Adviser to the Governor of Delta State on Community Development, Mr Ernest Airoboyi; amongst others.
The Divisional Head for South at The Alternative Bank, Mr Chukwuemeka Agada, emphasised the institution’s commitment to Warri and its surrounding communities.
“By establishing a presence here, we are initiating a transformation in the way banking serves the people of Delta. Our purpose-driven approach ensures that customers’ financial goals are not just met but exceeded,” he stated.
“This branch represents our pledge to empower Warri’s dynamic businesses and families, providing them with the tools to grow without compromise,” Mr Agada added.
“We understand the heartbeat of this community, and we are excited to integrate our bank into the fabric of this dynamic region,” he stated further.
On his part, the representative of the Ovie, Mr Samuel Eshenake, challenged the bank to facilitate development and employment within the Effurun community.
The Regional Head for Edo/Delta at The Alternative Bank, Mr Akanni Owolabi, embraced this challenge, pledging that the bank will work sustainably to drive local commerce.
“At The Alternative Bank, we are committed to being an active partner in the development of Effurun. We see this branch as a catalyst for creating opportunities, driving employment, and supporting the growth of local businesses.
“Our mission is to empower this community, ensuring that every step forward is one of progress, prosperity, and shared success.”
By Aduragbemi Omiyale
A partnership aimed to enable seamless, real-time and secure transactions for cardholders across Africa and the rest of the world has been entered into by Payattitude and PAPSSCARD, the card scheme initiative of the Pan-African Payment & Settlement System (PAPSS).
The collaboration will allow Payattitude cards issued by banks and other deposit-taking institutions to be co-branded with PAPSSCARD, Discover, Diners and Pulse for acceptance across their networks in Nigeria, Africa and worldwide.
As an initiative of the African Export-Import Bank (Afreximbank) and a key financial infrastructure supporting the African Continental Free Trade Area (AfCFTA), the PAPSSCARD scheme will facilitate instant cross-border payments in local currencies.
“This partnership reflects our commitment to cross-enterprise alliances and enabling inclusive, efficient, and borderless payments across Africa and the world
“With Payattitude, Nigerian cardholders and financial institutions can now enjoy the benefits of a Nigerian card that can be used worldwide,” a director at Payattitude, Dr Agada Apochi, said.
The acting chief executive of PAPSSCARD, Mr John Bosco Sebabi, said the aim is “to connect African payment ecosystems, reduce the cost and inefficiencies of cross-border payments, and strengthen African sovereignty over payments infrastructure.
“Collaborating with Payattitude, a key innovator in Nigeria’s payment space, represents a significant step towards a more unified African payment landscape.”
The chief executive of PAPSS, Mr Mike Ogbalu, said, “By bringing together PAPSSCARD’s robust cross-border payment capabilities with Payattitude’s leadership in the Nigerian digital payments, we are taking tangible steps toward building a single African market where individuals and businesses can transact easily and securely, both within and beyond Africa.”
Payattitude is the first-in-kind Nigerian Payment Scheme to pioneer multibank App and USSD Code *569#.
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