The Central Bank of Nigeria (CBN) has ordered all commercial banks to start collecting old N500 and N1,000 notes from the public with immediate effect.
The CBN has maintained that the old currencies are no longer legal tender and have instructed banks to collect the monies instead of going to the CBN office. The CBN has, however, pegged the maximum amount the banks can collect at N500,000.
According to a CBN official, individuals are required to fill a form online, generate a reference code and take the old banknotes to their banks. The banks will then collect the banknotes from the individuals and credit their accounts. If an individual wants to deposit more than N500,000, they will have to visit a CBN office.
Earlier, the CBN had opened a portal on its website and made it mandatory for those willing to return old notes to fill and generate a code. This move was made as a result of difficulties that people encountered in getting access to the bank.
The decision by the CBN to make the old N500 and N1,000 notes invalid has been met with criticism from some quarters. Critics argue that many Nigerians are still in possession of these notes and that the move will result in a significant loss of money for them.
In response to these criticisms, the CBN Governor, Godwin Emefiele, announced that the old N200 notes would still be legal tender until April 10, 2023. This announcement was made after President Muhammadu Buhari urged Nigerians to deposit their old N500 and N1,000 notes with the CBN.
In recent weeks, there have been protests in different states across Nigeria over the scarcity of new naira notes. The CBN’s order to commercial banks to collect higher denominations is seen as a response to these protests. The move is aimed at increasing the circulation of new naira notes and reducing the scarcity of cash in the economy.
The CBN has been making efforts to improve the Nigerian economy by introducing policies to stimulate growth and reduce inflation. The bank has been working closely with the federal government to create an environment that is conducive to business and investment.
However, these efforts have been hindered by the economic challenges faced by the country, including the COVID-19 pandemic and falling oil prices.
