Business

New naira notes flood parties despite shortage at banks

Huge wads of the newly redesigned naira notes have flooded several events in the country despite complaints by several banks that they had run out of the small quantities of the new banknotes allocated to them from their head offices.

Commercial banks in Nigeria, on Thursday, commenced the dispensation of newly redesigned naira notes as a few customers were paid by the banks over the counter.

It would be recalled that the Central Bank of Nigeria (CBN) recently redesigned three naira notes out of the existing eight banknotes.

These are the N200, N500, and N1,000 denominations which took effect on Thursday, December 15 after its launch by President Muhammadu Buhari.

The CBN said the new and existing currencies shall remain legal tender and circulated together until January 31 when the existing money shall cease to be legal tender in Nigeria.

There were several reports that the banks in the country received small quantities of the newly redesigned naira notes on Thursday as customers were paid a few notes and with the old ones over the counter while Automated Teller Machines (ATMs) dispensed old bank notes to Nigerians.

However, large wads of the newly redesigned notes, over the weekend, saturated party venues with hawkers charging N200 on N1,000.

The CBN had earlier clarified on its website under currency management, that it is against the law to sell currency banknotes.

It added that while the CBN is responsible for the issuance of the Naira and kobo as stipulated in Sections 17, 18, and 19 of the CBN Act, it is the role of the Nigeria Police Force (NPF) to work with the CBN and other security agencies in combating sales, counterfeiting and carry out sting operations to arrest, investigate and prosecute them accordingly.

“It is against the law for any individual or establishment outside the Central Bank of Nigeria, to print money or be in possession of counterfeit notes. Sections 20 and 21 of the CBN Act of 2017 reveal some of the abuse that could land Nigerians in Jail.

“If you are caught and convicted of a counterfeiting crime, you may face up to five years imprisonment with no option of fine (Section 20).

“It is against the law to spray the naira banknotes at occasions. It is against the law to write on banknotes and against the law to staple the banknotes as the pins can cause corrosion of the banknotes,” the CBN spokesman, Osita Nwanisiobi, had said.

The Star