Banks begin dispensing redesigned naira notes — but limited supply in circulation

In line with the directive of the Central Bank of Nigeria (CBN), deposit money banks (DMB) began dispensing the redesigned naira notes to customers across the country on Thursday, December 15, 2022.

The new naira notes were dispensed over-the-counter alongside the old ones in most commercial banks.

On December 8, Godwin Emefiele, CBN governor, said banks had received the new notes, assuring Nigerians that “it would go round”.

But monitoring the exercise on Thursday, TheCable observed that some commercial banks had limited supply of the new notes, after visiting some financial institutions in Lagos.

A cashier at a branch of the Guaranty Trust Bank (GTB) said the redesigned denominations will not be available for dispensing tomorrow due to the low supply.

Another member of staff of the United Bank of Africa (UBA) said on only N2000 of the new notes were allowed to be dispensed, stressing on the limited supply constraints.

“Hopefully by the end of the month, it should be better circulated,” the cashier said.

On October 26, Emefiele, had announced the plan to redesign the biggest denominations of the country’s currency to control money supply and aid security agencies in tackling illicit financial flows.

The governor had said the new notes (N200, N500 and N1000) will be effective from mid-December 2022, advising customers to deposit their old notes before January 31, 2023, when they will become illegal tender.

The redesigned currency notes were thereafter unveiled by President Muhammadu Buhari last month, an act that stirred numerous reactions — mostly unsavory.

Meanwhile, the CBN has directed deposit money banks and other financial institutions to ensure that over-the-counter cash withdrawals by individuals and corporate entities per week do not exceed N100,000 and N500, 000, respectively.

The apex bank said the withdrawal limit policy will take effect nationwide from January 9, 2023.