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When the Central Bank of Nigeria (CBN) announced the redesign of the N200, N500 and N1,000 notes, not many people would have thought a crisis would follow. Northern Bureau Chief, MUHAMMAD SABIU, examines the acute scarcity of the naira notes and its effects in the North.
Months ago, when the governor of the CBN, Godwin Emefiele, announced the government’s intention to introduce new notes of N200, N500 and N1,000, the announcement was received with mixed feelings. Governor Nasir El-Rufai of Kaduna State had, in a recent interview with some media outfits, said he welcomed the decision of the Federal Government. However, now, he has kicked against the timeline for the introduction of the new notes and insisted that the deadline should be jettisoned considering the hardship associated with accessing the new notes.
He argued further that the federal government should allow Nigerians to use both the old and new currencies as legal tender as it is done in other climes.
Reactions to the February 10 deadline has continued to generate varying reactions, considering the CBN’s argument that there was more cash outside than in banking halls. There are also concerns on if the deadline on the old naira notes will indeed address vote buying and corruption in general.
Speaking on the development, a Professor of Economic History at the Kaduna State University, Temba Wuam, noted the action of the Federal Government on the new naira notes was intended to solve political problems rather than economic. The professor further alleged that the CBN has not printed enough naira notes to meet the demands of Nigerians.
The Ganduje letter
Citing the naira scarcity, Governor Abdullahi Umar Ganduje of Kano State in a letter to President Muhammadu Buhari called for the postpostment of a scheduled visit of the President to the ancient city of Kano.
Ganduje expressed concern over the hardship experienced by his people on getting the new naira notes, insisting that residents were agitated.
The governor said because the state is concerned about the hardship which he attributed to the Central Bank of Nigeria (CBN) deadline of old naira notes and for security reasons, the visit be postponed.
“As we are waiting for this important visit, we found ourselves in this situation, which puts citizens into untold hardship. For security purpose we wrote to Presidency that President Muhammadu Buhari’s visit to Kano be postponed,” he had said.
“There are no banks in most of our rural communities. How these people get new Naira notes is of great concern. Just look at what is happening in our urban areas. People go and spend hours upon hours in banks and without any assurances of getting the new notes.”
“This problem affects all of us. Therefore our voice must be heard in all nooks and crannies. We are a commercial hub. As such, our position must be loud and clear.”
In a statement, the Chief Press Secretary to the governor, Abba Anwar, said a meeting was held with citizen representatives in the state.
Two serving Senators from the All Progressives Congress (APC) – Kabiru Ibrahim Gaya and Barau Jibrin – 20 members of House of Representatives, 30 legislators from the State House of Assembly, religious leaders, and traders were among the groups that threw their weight behind the governor.
The following day, the governor in the company of several persons from the state were in Daura to see the president who was on vacation. It was gathered that the meeting with the president turned out to be the tonic wine needed to review the deadline as the CBN governor was in Daura around the same time.
After that, Emefiele told newsmen that the President had approved an extension of the deadline for the new naira notes till February 10. And it appeared that the declaration by the CBN governor brought temporary relief to Nigerians.
Although findings by the Nigerian Tribune revealed that the extension provided some measure of relief, but there currently appears to be no sign that the new naira notes are now readily available.
Investigation across the northern region revealed hardship experienced by Nigerians. For instance, in many banks across the North, the ATMs are not dispensing cash. Even across the counter inside banking halls, cash available is limited.
People queue for long hours at banks but return to their homes frustrated. Where money is available, it was learnt that one can’t withdraw more than N2,000.
A customer who pleaded for anonymity said he came to join the queue at the Zenith Bank in the area since 6am and until 2pm, no cash was available in the machine. He said: “We were told money will be available but there’s no trace of it. Worse, one cannot make transfer as there is no network. I am frustrated. And I need money to buy foodstuffs.”
Also it was gathered that the mobile apps of banks such as Zenith Bank and Access Bank were not in top functionality.
Another resident, Samuel Peter, said: “Now you can only withdraw N2,000 from the ATM machine. This is utterly disgusting.”
The situation is the same at UBA according to Bashir Umar, a resident, who went to withdraw money at one of their branches blamed the staff of the bank for joining the queue.
Speaking to the Nigerian Tribune, he said: “Initially, we thought they were customers only to find out they are staff of the bank. Most of them collected ATM cards of their friends and relatives and withdrew money. By the time it got to me, there was no money in the machine.”
The situation, according to observation, was worse in rural areas where there are no banks. Findings gathered revealed that the attempt to cushion the situation with the introduction of agents by the apex bank has not helped the situation.
In most of the points visited, hardly could one find a “super agent”. Sani Umar, a resident of Birnin Yero in Kaduna State, contended that at the initial stage, the agents were giving people N10,000, even if you have more money you want to swap.
However, it is not all gloom, customers of Jaiz Bank, FCMB, Tajbank, and Unity Bank have commended their banks for making the new naira notes available.
In Zamfara, Kano, and Katsina, PoS operators are capitalising on the situation. Where money is available, they charged between N100 and N200 on every N1,000. An activist who pleaded for anonymity said: “I went to PoS to withdraw N3,000 but I paid N3,600. Meanwhile, hundreds of PoS operators have no cash.
How pregnant woman died over scarcity of cash
In Kaduna State, a pregnant woman in Kasuwan Magani, Kajuru local government, lost her life as a result of the scarcity of the new naira notes in banks.
Her husband was said to have been unable to pay the required hospital deposit because he could not access cash across the bank’s counter.
James Auta, the deceased’s husband, said his wife was rejected by the hospital when he could not make the payment due to the scarcity of the naira notes.
“My wife began labour around 11 pm. Since I could not withdraw any money, I called the attention of a nurse within our locality. But as my wife delivered, blood was coming out non-stop. All efforts by the nurse to stop the bleeding failed and she eventually died,” he said.
Zulum threatens to revoke certificate of ownership of banks who fail to make new naira available
Governor Babagana Zulum of Borno State, last week Friday, visited some commercial banks and ATM booths in Maiduguri after he received complaints that most ATMs were not dispensing cash.
He said: “I deliberately went round the banks to see for myself. This man here has been on the queue since 6am but he cannot withdraw N10,000.
“Any bank that deliberately refuses to make the new naira notes available to its customers, should know that, we will revoke its land allocation.”
Kaduna, Kogi, Zamfara drag FG to Supreme Court
Amid the concerns over the scarcity of cash, the governments of Kaduna, Kogi, and Zamfara states filed a suit before the Supreme Court asking the apex court to restrain the Federal Government and the Central Bank of Nigeria (CBN) from making the old notes of N200, N500 and N1,000 illegal after 10th February, 2023.
In an ex party motion filed on their behalf by AbdulHakeem Uthman Mustapha (SAN), the states prayed the apex court to grant an interim injunction stopping the Federal Government from continuing with the new policy.
On 8th February, a seven-member panel of the Supreme Court led by Justice John Okoro, in a unanimous decision, granted an interim injunction restraining the FG, CBN, and commercial banks from implementing the February 10 deadline for the old N200, N500 and N1000 notes.
The apex court further held that the FG, CBN, commercial banks must not continue with the deadline pending the determination of a notice in respect of the issue.
By the ruling, the old Naira notes continue to be legal tender in Nigeria until the determination of the suit.
Meanwhile, the federal government has filed a suit challenging the jurisdiction of the court over the order.
However, Professor Temba of KASU has insisted that the Supreme Court ruling will not make any difference because there’s no money in circulation, adding that it will take time for the present scenario to return to normal.
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