Naira Scarcity Escalates in Nigeria Amid Impending Old Banknote Deadline

In light of the Central Bank of Nigeria’s (CBN) announcement regarding the use of old N200, N500, and N1000 banknotes, Kano and Borno states are facing an increasing shortage of Naira. Although the CBN confirmed that these notes would remain valid until December 31, 2023, following a Supreme Court ruling, the former CBN governor, Godwin Emefiele’s appeal to allow deposits of old notes until January 31, 2023, sparked nationwide protests and unrest targeting banks.

Despite the ongoing protests, the Supreme Court upheld the extension of the validity of these notes until the year’s end. With just two months remaining until the deadline, businesses in Kano and Borno states are struggling with cash shortages, while regions like Lagos continue to thrive economically with sufficient cash flow.

A Point of Sale (PoS) operator in Kano indicated that banks are imposing daily withdrawal limits for individuals and businesses due to the scarcity. As a result, there is a decline in cash availability at PoS centers as people rush to deposit their old notes ahead of the impending deadline.

In Maiduguri, Borno State, the limited availability of cash is greatly affecting residents and traders, leading to a rise in online transactions. A bank employee mentioned that their institution has instituted a daily withdrawal limit of N20,000 in response to the shortage.

Bureau de Change operators on Sheraton Road in Wuse Zone 4, Abuja have also noted a renewed scarcity of Naira, attributing this to banks collecting cash in anticipation of the December deadline for the old notes.

This article was created with the assistance of AI and reviewed by an editor.