Naira redesign: Prolong deadline to June 30, 2023, Senate tells CBN

The Senate has urged the Central Financial institution of Nigeria (CBN) to increase deadline of withdrawal of previous Naira notes mounted for January 31, 2023 to June 30, 2023.

CBN had in November introduced to Nigerians that naira notes of N1,000, N500 and N200 denomination, can be re – designed into new colors with attendant withdrawal of previous notes from circulation from December 15, 2022 to January 31, 2023 when they may not develop into authorized tender.

However the Senate on the Wednesday plenary on the energy of movement sponsored by Senator Ali Ndume (APC Borno South) , urged the CBN to increase the deadline from January 31, 2023 to June 30, 2023.

Ndume within the notion titled: “Pressing want to increase the withdrawal of previous foreign money from circulation,” famous that the timing of the coverage was unsuitable and  that for the reason that starting of the implementation of the coverage,  the brand new notes usually are not in circulation even in cities talkless of within the villages.

The movement reads: “Senate Notes that Many Nigerian banks on Thursday fifteenth December 2022 open their vault to prospects and depositors to trade their previous naira notes for the newly redesigned foreign money, which has a stipulated deadline of January 31, 2023.

“Conscious that Some Nigerians are already envisaging rush and lengthy queues within the banking corridor throughout the nation on account of individuals attempting to get entry to the brand new naira word, which was unveiled final month by President Mohammad Buhari at a short ceremony on the state home, Abuja.

“Conscious additionally that  the previous notes are anticipated to be in circulation alongside the brand new ones till January 31, 2023, when the previous notes are anticipated to be phased out, it’s anticipated that many Nigerian companies would begin to reject the previous notes as quickly because the banks begin paying out the redesigned notes to prospects.

“Observes that Entry to the brand new notes could also be compounded by the current round by the CBN, which restrict the amount of money people and company entities may withdraw inside a sure time frame. For example, the CBN stated people may solely withdraw N100, 000 per week whereas company may solely have entry to N500, 000 per week by over-the-counter (OTC) transactions.

“Observes that entry to massive portions of money above the restrict would appeal to processing charges of 5% and 10% for people and company entities respectively. Giant withdrawals are additionally subjected to scrutiny by the regulator to find out the significance and utilization of such money; and onvinced that if the withdrawal of previous notes from circulation will not be prolonged past thirty first January 2023,  many Nigerians shall be thrown into hardship and to keep away from a repeat of 1984 expertise withdrawal of previous notes.”

Senator Adamu Aliero (PDP Kebbi Central) and different senators who contributed to debate on the movement, submitted that the timeframe given for implementation of the coverage was too quick and tough for Nigerians to adjust to.