Sonisphere

• Nigerians are facing a redesign of their banknotes, the naira, and old naira bank notes will be useless after February 10.
• The Central Bank of Nigeria (CBN) has imposed a weekly cash withdrawal limit which is causing long lines at banks and ATMs.
• This comes at a time when Nigerians are preparing for an important election in February, while also dealing with inflation over 20%.

Nigerians Facing Redesign of Naira Bank Notes

Imagine standing in endless lines, fighting to get ahold of your own money. This is life for millions of Nigerians right now, who face a redesign of their banknotes, the naira. After February 10th, old naira bank notes will be rendered useless.

Central Bank Imposes Withdrawal Limits

The Central Bank of Nigeria (CBN) has imposed a weekly cash withdrawal limit which, as of January 9th was 500,000 naira for individuals (around $1,087) and 5,000,000 naira (around $10,087) for organizations. Unfortunately the actual amount available to withdraw depends on what’s available at each location.

Witnessing Long Lines & Scarcity Issues

My team in Nigeria is witnessing all-day queues — with many people walking away empty handed. Some bank offices and ATMs do not even have cash to dispense. Additionally Point-of-Sale (PoS) charges have skyrocketed by 400%, further straining those already struggling with inflation over 20%.

Impact on Upcoming Election

This monetary chaos comes at an especially inconvenient time when Nigerians are preparing for an important general election on February 25th. Political parties are threatening an election boycott if the February 10th deadline is pushed back again as they believe less cash in circulation cuts down on fraud and vote buying.

Conclusion

The redesign policy is putting both everyday livelihoods and significant political events in jeopardy due to lack of access to new notes and increased PoS transaction fees caused by limited cash availability. It remains unclear how this will affect the upcoming election or what impact it will have on day-to-day transactions beyond that date but one thing stands true: something urgent needs to change before it’s too late.

Allgemein