‘How Scarcity Of New Naira Notes May Halt Hoarding’

Samuel Mobolaji

There are indications that the unavailability of the redesigned notes in the public may reduce hoarding of the new notes, as most bank customers claimed not to have been receiving from their banks since the deadline for the old notes was extended till the end of the year.

Although, there had been new reports that the Central Bank of Nigeria(CBN) is planning on phasing out the new notes, which the apex bank debunked, with the apex bank confirming that the Nigerian Security Printing and Minting Company (NSPMC) Limited, has been printing the new notes.

A source within the apex bank revealed that the new notes are not being pushed out to prevent Nigerians from hoarding the new notes.

In our fact findings, it was discovered that in a move not to experience what people went through, during the cash crunch period, many Nigerians were keeping the new notes they have ahead of the December 31, 2023 deadline,

For instance, a groceries retailer noted that, she hasn’t seen the newly redesigned notes since the cash crisis and she has the intention of saving anyone that she has ahead of a reoccurrence of the cash crunch that was seen earlier this year by the time the deadline of December 31, 2023 is effected.

The CBN had late last December said, it had ordered the printing of 500 million units of the new naira notes and had pumped it out the new notes majorly in January and February this year.

However, since the new deadline of December 2023 was announced and the old notes reintroduced into circulation, the new notes have been scarce.

A commercial bus operator in Lagos, noted that, he rarely sees the new notes just as Nneka, a car hailing service driver with Bolt noted that she had only received the new note just once since the cash scarcity ended.

“I am keeping any of the new notes that I get now. I will keep it as savings, and not put it in the bank. We don’t know what may happen again in December when they phase out the old notes,” she stated.

On the speculation of phasing out the new notes, the apex bank, in a statement signed by the acting director, CBN, Dr Abdulmumin Isa, said: “We wish to state emphatically that such speculation is unfounded and a ploy by some interests to cause panic among members of the public. We wish to reiterate that the new and old currency notes have been circulating side by side just as the Bank has been taking delivery of a good quantity of the redesigned bank notes from the Nigerian Security Printing and Minting Company (NSPMC) Limited.

“Furthermore, we are committed to supplying the approved indent for the smooth running of the economy. We, therefore, urge members of the public to disregard any report suggesting a phase-out of the redesigned currency.

“For the avoidance of doubt, the redesigned and old notes will continue to be accepted as legal tender. They will circulate side-by-side for transactions ahead of the December 31, 2023 deadline, when the old N1000, N500 and N200 banknotes will eventually be phased out.”