Following the redesign of the N200, N500, and N1,000 banknotes, the Senate unanimously urged the Central Bank of Nigeria (CBN) to postpone until June 30, 2023, rather than January 31, the deadline for returning the old currency. The motion was sponsored by former Senate Leader, Senator Ali Ndume, APC, Borno South, and was titled “Urgent Need to Extend the Withdrawal of Old Currency from Circulation.”
Ndume, who pointed out that the policy’s timing was incorrect, claimed that since the beginning of the implementation of the cash withdrawal limits, the new notes are not even in use in cities, let alone in rural areas. “Notes that access to significant amounts of cash above the limit would attract processing fees of 5 per cent and 10 per cent for individuals and corporate entities respectively.
“Large withdrawals are also subjected to scrutiny by the regulator to determine the importance and usage of such cash; and convinced that if the withdrawal of old notes from circulation is not extended beyond 31st January many Nigerian will be thrown into hardship and to avoid a repeat of 1984 experience withdrawal of old notes.
“However, Ndume failed to acknowledge that the CBN announced an upward review of the cash withdrawal limits across all payment channels by individuals and corporate organisations.