The Central Bank of Nigeria (CBN) has been applauded in different quarters for its extension of the deadline for exchanging old naira notes by ten days.

Before now, the CBN gave a 31 January deadline for the swapping of the old banknotes for the new ones, but many Nigerians, including the federal lawmakers, opposed the deadline, complaining of difficulties in accessing the new notes.

From recent findings, it has been discovered that commercial banks still give out old notes to their customers for over-the-counter withdrawals.

Recent media reports further showed that some commercial bank customers were only allowed to withdraw a limited amount of the new notes, and very few Automated Teller Machines (ATMs) dispense the new N1,000, N500 and N200 notes.

The CBN, in its latest statement, said it has provided deposit money banks with guidelines on processes they must adopt in the collection of old notes and distribution of the new ones to Nigerians.

Part of this includes specific directives to load their ATMs nationwide with new notes to ensure an equitable and transparent mechanism for the distribution of new notes to all Nigerians.

From every indication, these actions by commercial banks go against the directive and guidelines of the CBN.

The question now is, why is the CBN slow in taking action or sanctioning these commercial banks if there is evidence that they have defaulted?

The CBN, in its recent statement, also said the apex bank has received reports of breaches by some bank branches, hence, its decision to work with anti-corruption agencies to ensure monitoring and implementation of the guidelines.

Earlier in January 2023, the apex bank issued a warning through its Director, Currency Operations Department, Ahmed Umar, saying that it will penalise banks that fail to comply with its directive to dispense the redesigned notes through their ATMs.

If commercial banks are refusing to adhere to the CBN’s directive, then there is still a possibility that the extension of the cash swap deadline will not achieve its purpose.

The CBN should ensure that it employs strict disciplinary action on banks that have refused to comply with its directive. When defaulting banks are made to face sanctions, then other commercial banks will be forced to comply.

The apex bank should also stop the blame game between itself and commercial banks and take necessary actions as the average Nigerians are the ones bearing the brunt of the chaos.

Photo source: CBN