Tag: Central Bank of Nigeria’s (CBN)

By Daniel Edu

Ahead of the Central Bank of Nigeria’s (CBN) deadline for the use of old N200, N500, and N1000 banknotes, scheduled for December 31, 2023, reports indicate a resurgence of Naira scarcity in certain states, notably Kano and Borno. The CBN had earlier extended the validity of these old notes, following a Supreme Court ruling, urging citizens to deposit them before January 31, 2023. Despite this extension, concerns about Naira shortages have surfaced.

This scarcity comes amid fluctuations in the black market exchange rate, where the US Dollar to Naira rate stands at N1175 for buying and N1180 for selling as of November 3rd, 2023. Please be aware that these rates are subject to change due to market dynamics, and prices may vary based on location and exchange sources.

As the deadline approaches, citizens and businesses are grappling with challenges related to the availability of Naira, raising concerns about the practical implications of the CBN’s directive in these affected states.

By Daniel Edu

A shortage of Naira currency notes has been reported in several states, including Kano and Borno, as the Central Bank of Nigeria’s (CBN) deadline for the use of old N200, N500, and N1000 banknotes approaches. The scarcity comes ahead of the CBN’s deadline of December 31, 2023, for the old notes to remain legal tender, as mandated by the Supreme Court.

The scarcity has led to concerns among business communities, with reports of limited cash availability in banks and ATMs. Point of Sales (PoS) operators in Kano revealed that they were facing challenges in obtaining sufficient cash from banks, forcing them to seek alternatives from markets and fuel stations. ATMs in various areas were reportedly not dispensing cash, leaving residents and traders struggling to conduct transactions.

In Borno State, the scarcity has impacted residents, traders, and banks, forcing many to resort to online transactions due to the limited availability of cash. Banks in the state have set withdrawal limits as low as N20,000 for customers, and some customers have experienced difficulties accessing cash from PoS points.

Bureau de Change (BDC) operators in Abuja also shared their experiences, noting that the scarcity of Naira had worsened in recent days, potentially due to banks mopping up cash ahead of the old notes’ expiration deadline.

The resurfaced Naira scarcity has raised concerns among the public, creating challenges for everyday transactions and causing inconvenience for businesses and individuals alike.