Banks to cease the withdrawal of the new naira notes over-the-counter on CBN order

By: Damian Okonkwo

The Central Bank of Nigeria (CBN) has ordered the Nigerian banks to cease allowing the withdrawal for the new naira notes over-the-counter with immediate effect. This directive was issued in a circular dated January 7, 2023, and signed by the CBN Director of Currency Operations, Musa Itopa Jimoh.

According to the circular, the new directive is aimed at ensuring the “smooth distribution” of the new naira notes and to “minimize the risks associated with the handling of cash by bank staff and customers.” The CBN added that the directive does not affect the use of Automated Teller Machines (ATMs) for the withdrawal of new naira notes.

The CBN had earlier released the new naira notes in December 2022, in denominations of N200, N500, and N1000. The new notes, which are made of polymer, are expected to have a longer lifespan and be more resistant to counterfeiting.

However, the introduction of the new naira notes has not been without controversy. Some Nigerians have expressed concerns over the availability of the new notes, with some banks experiencing shortages. There have also been reports of fake versions of the new notes in circulation.

The CBN has assured the public that the new notes are readily available and has urged banks to increase their distribution. In a statement, the CBN Governor, Godwin Emefiele, said that the new notes are being distributed to all parts of the country and that the CBN has enough stock to meet the demand.

The CBN has also warned the public against counterfeiting and urged them to report any suspicious activity to the authorities. It has also advised the public to exchange their old naira notes at their banks before the deadline for doing so expires on June 30, 2023, which is the new date proposed by the Senate.

In conclusion, the CBN's decision to stop over-the-counter withdrawal of new naira notes is aimed at ensuring the smooth distribution of the new notes and minimizing the risks associated with handling cash. The directive does not affect the use of ATMs for the withdrawal of new notes. The CBN has assured the public that the new notes are readily available and has warned against counterfeiting. It has also urged the public to exchange their old naira notes before the deadline expires.