Banks Ration New Naira Notes as Cash Shortage Hits Financial System
By Adedapo Adesanya
Days after the Central Bank of Nigeria (CBN) rolled out the new Naira notes, Business Post can independently verify that Nigerian banks are rationing the banknotes.
According to conversations with employees and customers of several banks in the country, the old notes would still be given out to customers alongside the new notes due to the limited supply of the redesigned N200, N500, and N1,000 from the CBN.
Recall that the central bank had announced limits on cash withdrawals via over-the-counter (OTC), Automated Teller Machines (ATMs), and other channels after it called on customers to deposit their old N200, N500, and N1,000 notes. This move was part of initiatives to increase the use of electronic transfers.
In a notice, the CBN said customers would no longer be able to withdraw more than N20,000 per day via the ATM and PoS terminals and N100,000 per week via the same channels.
“The maximum cash withdrawal per week via Automated Teller Machine (ATM)) shall be N100,000, subject to a maximum of N20,000 cash withdrawals per day. Only denominations of N200 and below shall be loaded into the ATMs,” the disclosure stated.
It also said, “the maximum cash withdrawal via point of sale (POS) terminal shall be N20,000 daily.”
As for cash withdrawals via OTC, the central bank stated that it would be N100,000 for individuals, with a 5 per cent processing fee for amounts above the cap, while for corporate organisations, the limit is N500,000 and 10 per cent charge for amounts above the limit.
The maximum cash withdrawal over-the-counter (OTC) by individuals and corporate organizations per week was pegged at N100,000 and N500,000, respectively, from January 9, 2023.
This newspaper confirmed that customers who opted for cash withdrawals were given a mix of the old and new N1,000 notes, which is not the usual practice when new notes are introduced into the financial system.
For instance, a customer who doesn’t want to be named said he went to a Wema Bank branch on Monday (December 19) for a N30,000 withdrawal via cheque and was given N20,000 in old N1,000 notes and N10,000 in the redesigned notes.
Another bank customer said the GTCO in her area gave her about 40 per cent of the new notes while the rest were the old notes. She, however, expressed that it would drive her to adopt electronic platforms rather than visit the ATMs.
Speaking with a staff of one of the commercial banks, who asked for anonymity, it was confirmed that they were instructed to ration the notes.
Another bank rep, who is familiar with banking operations, confirmed to this reporter that, “People get it at the branch. I hear it’s being rationed, yes.”
Meanwhile, Business Post gathered that some of the commercial banks are battling with cash shortages ahead of the January 9, 2023 commencement of the new cash withdrawal policy of the CBN. At one of the branches of a tier-one bank on Akonwonjo Road, Egbeda, Lagos, on Wednesday, customers who wanted to withdraw cash were asked to wait for customers to make cash deposits before they could be attended to.
Also, at the branch of another bank on Idimu Road in Egbeda, it was a similar situation, as a few customers with large cash withdrawals had to wait for a while to have their requests granted.
This has already frustrated some customers, who are beginning to doubt the efficacy of the new CBN policy.
One of them, who identified himself as Mr Raymond Ademola, said, “This policy is only meant to frustrate the masses. I don’t know why people would be restricted from taking their funds from banks. But I thought this policy is supposed to start next year; why is it difficult to withdraw cash?
