Confusion: Customers Reject Old Naira Notes Dispensed By Banks (See Reactions)

Sequel to the Supreme Court ruling extending the validity of the old N500 and N1,000 notes till December 31, 2023, Deposit Money Banks (DMBs) have resumed paying customers the old currency.

Contrary to expectations that Nigerians who are cash trapped will be eager to receive the old currencies,  random visits by Vanguard to some DMBs on Tuesday showed that customers are reluctant to collect the old currency.

Meanwhile, neither the apex bank has issued circular instructing banks to comply with the Supreme Court judgment nor did the presidency react to the ruling.

Recall that a seven-member panel of justices presided over by Justice Inyang Okoro, on Friday, held that the directive by President Muhammadu Buhari to the CBN for the redesigning and withdrawal of old notes of N200, N500 and N1,000, without consultation with the states, the Federal Executive Council and the National Council of State and other stakeholders, was unconstitutional.

The apex court observed that no reasonable notice was given before the implementation of the policy as provided under the CBN Act.

An official of one of the banks visited who spoke on condition of anonymity with Vanguard affirmed that some of the DMBs have started on-the-counter payment of the old currencies to customers in the meantime.  

However, the source said majority of the banks are awaiting directives from the Central Bank of Nigeria (CBN) on the Supreme Court ruling.

“We started on-the-counter dispensation of the old currency since Monday (yesterday) following the Supreme Court’s ruling on Friday but we are yet to hear from the CBN on where to go after the ruling. We also notice that customers have been reluctant to collect the old notes. The new notes are also not evenly circulated, hence the large crowd you see at bank entrances and ATMs,” he said.

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