Nigeria’s President, Muhammadu Buhari, has approved an extension of the deadline to turn in old Nigerian banknotes until April 10th. The move regarding Nigerian banknotes comes as a result of cash shortages that have caused frustration and anger among citizens, particularly ahead of presidential and parliamentary elections later this month.
Last year, the Central Bank of Nigeria introduced newly designed 1,000 ($2.17), 500 ($1.08), and 200 ($0.43) naira notes, and the deadline to turn in old notes had already been extended once to February 10th. However, a shortage of new notes led to long queues and chaotic scenes at banks across the country, particularly as the majority of Nigeria’s economy is still informal and people tend to rely on cash transactions.
What Nigerian banknotes can be swapped?
In a television broadcast, Buhari announced that the old 200-naira Nigerian banknotes would continue to circulate in the economy alongside new 1,000, 500, and 200 notes until April 10th. However, old 1,000 and 500 notes could only be swapped at the central bank and “designated points.” This contrasts with last week’s Supreme Court interim ruling that stated that all old notes remain legal tender until it hears a challenge brought by some state governments.
Buhari defended the initiative, stating that it would lead to greater transparency in financial transactions, reduce the money supply in the economy, and curb money laundering. However, some politicians have criticized the timing of the initiative, particularly as campaigns are primarily funded by cash that is difficult to trace.
Reports have emerged of angry citizens vandalizing cash dispensing machines at some banks in southern Nigeria, demonstrating the frustration caused by the cash shortages.
Image Credit: Reuters
