By Francis Nansak.
Is exactly Eleven days into the Christmas Celebrations , Nigerians are not having it easy planning for a successful 2024 festive period as the availability of the nation’s currency becomes hard to get.
This so because of the Federal Government policy on fizzling out the old naira notes of #100, #200, #500 and #1000 denominations from circulation as announced by the Central Bank of Nigeria sometimes in November this year.
In Nasarawa State,since the announcement of the policy buying and selling sky rocketed amid the fuel subsidy removal which had plunged the economy backward and caused hardship in transporting goods and other essential commodities.
As a result of all these negative policy on Nigerians ,some civil servants hardly go to work ,just as some businesses renders skeletal services due to poor patronage.
With all these negative happenings the banks which would have been the hope for those with deposits in them resorted to regulating transactions to their customers who only access less than #50,000 withdrawals making POS vendors to buy Naira against the usual charges.
In some of the areas visited ,precisely Keffi, Nasarawa and Karu LGAs of Nasarawa State,a POS vendor charges not less than #200 for a #5000 transaction whereas in the previous months before November,#100 was charged for #5000 withdrawals or transfer.
Kayode Babalola is a Federal Civil servant who work in Keffi but resident of Abuja complaint bitterly on how he spent money on transportation if he most meet his daily duties.
He said out of his meager earning at his level,he spent not less than #4000 daily to work aside from feeding.
” I have tried to saved money to enable me afford a one room in Keffi to ease transportation but couldn’t,now we are in another level where even the cash is no longer available at the POS ,if I most go to work ,I have to pay much more to be able to get #5000 naira that will help me get to my area of assignment.
” The POS vendors claimed they buy money and can not run their businesses at a lost,so they have choice but resorted to buying monies from banks” He said
A vendor in Keffi told our correspondent that he has no option but to sale because he buys from the bank too.
” I went the bank for a million naira ,but I ended up paying #25,500 to get the money, how do you expect me to give out without recovering my money? Before now I would had paid the usual charges which is the VAT but here we are today in Nasarawa State,which I belief is the same in some states like Jos and makurdi, neighboring states to my state the same thing is ongoing,because I have friends there doing same POS business like me as graduates.So I can boldly say that the CBN policy is not helping if this should continue” He anonymously spoke.
Samson Okoye a business man in Karshi Development Area of Karu LGA lamented drop in patronage of his business due to cash scarcity, he added that transaction has become a talk of town now.
” I used to make between Eighty Thousand Naira in four days but today I hardly make up to sixty thousand naira now in two weeks” He Said.
Meanwhile, OBSERVERSTIMES on Saturday recalled that the Central Bank of Nigeria (CBN) has imposed a fine of N150 million on Deposit Money Banks (DMBs) found complicit in aiding and abetting the illicit flow of mint Naira banknotes to currency hawkers and unscrupulous economic agents.
This is revealed in a circular issued by Solaja Mohammed J. Olayemi, acting director of currency operations, dated December 13, 2024, with reference number COD/DIR/INT/CIR/001/025.
The circular referenced an earlier notice issued on November 13, 2024, and expressed the CBN’s dismay at the continued commodification of Naira banknotes, which the apex bank stated undermines efficient cash distribution to bank customers and the general public.
The practice, according to the CBN, is not only detrimental to the economy but also compromises the integrity of Nigeria’s currency management system.
The circular stated, “CBN will continue to intensify the periodic spot checks to the banking halls and ATMs to review cash payouts to banks’ customers, as well as mystery shopping at all identified cash hawking spots across the country.”
The statement further noted that any erring financial institution found culpable would face stringent penalties, including a fine of N150 million per offending branch for the first infraction. For subsequent violations, the CBN warned that the full weight of the relevant provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020 would be applied.
An official of the CBN, speaking anonymously, said, “This measure is not merely punitive but also a deterrent to discourage the unwholesome practices that have continued to plague our currency management system. We are committed to ensuring that the Naira is treated with the dignity it deserves.”
To curb these practices, the CBN has directed all DMBs and financial institutions to enhance controls, processes, and procedures within their cash management centers, branches, and teller operations. The apex bank noted that these measures are vital to ensuring the effective and efficient flow of currency within the Nigerian economy.
