Banks reconfigure ATMs, new naira enters circulation today

The newly redesigned naira notes will go into movement on Thursday (today) with Deposit Money Banks liberating the bills to their customers thru over the counter payments.

Banks reconfigure ATMs, new naira enters circulation today .

This happened three weeks after the President, Major General Muhammadu Buhari (retd), unveiled the new bills at a weekly Federal Executive Council meeting in Aso Rock Villa.

The President unveiled the redesigned notes across the N200, N500 and N1,000 denominations.

The Governor, Central Bank of Nigeria, Godwin Emefiele, had in October announced that apex bank might launch re-designed naira notes by way of December 15, 2022.

He also disclosed that the vintage notes might cease to be appeared as prison tender through January 31, 2023.

Emefiele pointed out that the redesigning of the naira notes could help to scale back counterfeit notes, and decrease ransom payments to terrorists and kidnappers.

The CBN boss said it turned into worrisome that 85 per cent of the full forex in circulation become being hoarded by using Nigerians.

As such, he stated the redesigning of the nearby forex would assist to mop up the foreign money outdoor the banking region, adding that out of approximately N3.3tn in flow, near N2.75tn had been outside the banking region.

Meanwhile, top officers of commercial banks confirmed to our correspondent on Wednesday they had acquired the new notes from the CBN more than one days ago, adding that the redesigned foreign money would be launched to their clients powerful Thursday (these days).

“We were given the funds (new notes) approximately two days ago. Our head workplace has dispatched the finances to numerous place offices throughout the country. My branch will choose up our allocation at a nearby place workplace. We will begin liberating the brand new notes to our customers by means of Thursday,” in line with a pinnacle legitimate of a industrial bank who spoke to certainly one of our correspondents on situation of anonymity on Wednesday because he changed into no longer permitted to speak on the matter.

Multiple banking assets additionally stated the new notes had arrived and have been being kept in their vaults.

They confirmed the brand new notes would be paid to customers in banking halls starting from Thursday.

“The new notes have arrived, it is going to be made to be had to clients from the next day (Thursday)” an respectable of Polaris Bank who pleaded anonymity informed The PUNCH.

Also, a supervisor at First Bank Plc who changed into no longer approved to talk on the matterStated, “We have the price range from the CBN now. It got here in a few days ago but it will be made available to clients from tomorrow (Thursday).”

However, a few bank officials claimed the amount of the new notes available to the numerous bank from the CBN changed into small.

According to them, maximum OTC payments will nevertheless have to be made using the old notes due to the fact the quantity of the available new notes continues to be small.

“The amount given to us is small in comparison to what we need. For example, what’s to be had to my branch is much less than N1m. This is nothing in comparison to what we need. But I agree with it’ll increase with time,” an legitimate of FCMB in Lagos who pleaded anonymity told one in all our correspondents.

Also, a couple of banking resources confirmed they have commenced to reconfigure their ATMs to discover the brand new naira notes.

A pinnacle financial institution government said, “Most of the banks have started out reconfiguring their ATMs that allows you to discover the brand new notes of N1000, N500 and N200.,”’

Meanwhile, findings from the CBN show the total amount to be launched into circulation might not be a lot because the sum previously in circulation.

A pinnacle legitimate of the CBN, who spoke on circumstance of anonymity, said the CBN changed into planning to increase electronic bills and not cash transactions.
According to him, the CBN will not be printing huge amount of the brand new notes.

He stated, “The CBN has been disbursing the new naira notes to the banks however does no longer intend to disburse huge quantities because it desires to increase digital payments.

“Don’t count on that there can be a massive stream of the new notes inside the economy. There are exceptional electronic channels that human beings need to be the usage of.”

Reps expect Emefiele

Barring any closing-minute exchange of plans, the House of Representatives will on Thursday (today) grill Emefiele over the new cash withdrawal limits coverage which restricts OTC bills for people and businesses to N100,000 and N500,000, respectively.

The CBN had, in a memo introducing the coverage, stated third-birthday party cheques above N50,000 would no longer be eligible for OTC price at the same time as extant limits of N10m on clearing cheques nevertheless remained.

The round also directed banks to load best N200 and decrease denominations into their ATMs and constrained withdrawals from ATM to N20, 000 consistent with day. Withdrawals from PoS terminals had been also restrained to N20,000 every day.

The coverage, which becomes powerful on January nine, 2023, has generated criticisms but the CBN clarified ultimate Wednesday that PoS operators could follow for a waiver.

The House had closing Thursday summoned the CBN governor to seem before it to give an explanation for the coverage.

House of Reps resources informed one among our correspondents on Wednesday that Emefiele changed into being predicted within the chamber as planned.

Senate backs CBN

Meanwhile, the Senate on Wednesday referred to as at the CBN to check the newly introduced coins withdrawal limits policy.

It additionally directed its Committee on Banking, Insurance and different Financial Institutions, to embark on an competitive oversight of the significant bank.

The Chairman of the committee, Senator Uba Sani (APC Kaduna Central), had within the report argued that the proposed cash withdrawal limits coverage became well conceived via the CBN for the transformation of the nation’s financial system, noting that the movement falls inside the mandate of the apex financial institution as furnished for in Section 2(d) and 47 of its extant Act .

However, during the general debate at the record, among the senators kicked against the timing of the policy declaring that it can be specifically counter-effective.
Lawmakers divided

The first to rebellion changed into Senator Ajibola Basiru (APC Osun Central), who stated the proposed threshold of N100,000 and N500, 000 withdrawals consistent with week for individuals and company bodies respectively, become unrealistic.

He said, “Based at the file I got from my constituencies who’re basically small traders, rural dwellers and those who may be negatively impacted by way of the policy, I assume it’s far better to stick to fact, the brink that has been set is definitely unrealistic to have any strong and meaningful existence for our people.

“Above N100,000 per week, you pay a processing fee of 5 consistent with cent, looking on the inflation fashion in our us of a and looking at the common value of dwelling and survival of each own family in Nigeria, N20,000 day by day withdrawal is going to terribly affect our people.”

Ajibola, who described the recommendation of the committee as indistinct, stated, “I am now not oblivious of the truth that the committee had made guidelines on adjustments, however this is not enough. As a committee of the senate, they have to have interacted with the indices to give you guidelines.”

Interrupting Ajibola, the Deputy Senate President, Senator Ovie Omo-Agege, who presided over the plenary, stated, “That could suggest that the senate turned into interfering with the independence of the financial institution consistent with Section 2 sub-segment (forty seven) that gave the CBN this power.”

Ajibola who still had the floor, in his reaction stated, “If we can’t make tips on the brink, then we don’t have any commercial enterprise speaking about this problem. I suggest that we growth the edge to N100,000 each day and N500,000 weekly. This is realistic; the law is made for guy and for the welfare of the human beings in our society.

“Why can’t we notably regulate the withdrawal limits, that is indistinct, nebulous and provides not anything to the agitations of the Nigerian human beings who’ve elected us into the workplace.”

Also, Senator Adamu Aliero (PDP Kebbi Central) stated, “This file gives us a super photo of what the financial system have to appear like however in reality, it’s now not the equal. The informal quarter of the economic system in Nigeria is very massive and it’s no longer captured within the banking device.

“Most human beings residing in rural regions don’t visit the financial institution, they preserve their cash underneath their pillows and there may be a need for sensitisation and enlightenment for the programme to fly. We have 774 neighborhood governments in this us of a; I can guarantee you that the banks barely have branches in 60 in step with cent of the locations.”

He added, “I assist the concept of e-banking however we ought to do it with warning. The CBN need to appreciably modify the withdrawal limits in reaction to the general public outcry; humans are in opposition to this policy. If we give it approximately to 3 years, human beings will embody it.”

Again, in defence of the apex bank, Omo-Agege reminded the senate that the coverage began 10 years ago however his colleagues chorused, “in which?”

Senator Adamu Bulkachuwa (PDP Bauchi North), in his contribution, warned that the proposed coverage, if now not suspended, would possibly trigger a rebellion from rural population.

Bulkachuwa said, “Senate committee tips on the proposed CBN policy, is not anything but trying to positioned wool inside the eyes of Nigerians.

“There are nearby humans which are depending on daily market as their way of survival and the farmers in my constituency who interact on their farms want quite a few cash and all of them are paid on daily basis.

“This recommendation doesn’t make experience to me and the Nigerian people.”

The lawmaker representing Osun East, Senator Francis Fadahunsi, noted that the policy changed into top however the timing became incorrect. And it’d mostly have an effect on the rural people that they constitute.

Fadahunsi said, “All of us right here, such as the House of Representatives, all come from the rural areas and we know what it method. And now that we’re sitting below the comfort of air conditioner, we overlook that we’ve got troubles at home.

““A coverage like this turned into brought in 1984 and 1985 and I knew what some people suffered. Our humans want a whole lot of time and training so that they received’t have troubles.”

He delivered, “This policy is good however the timing is inaccurate. Massive session became not finished.”

In her remark, Senator Stella Oduah, (PDP Anambra North) referred to that, “I don’t assume that all and sundry objects to the truth that a cashless society is what we want. My problem comes a as a result of us being punitive.”

The leader whip of the Senate and the vice Chairman of the committee, Uzor Kalu, (APC North), who additionally signed the followed report at the proposed coverage, kicked against it in his contribution.

He stated, “N100,000 in keeping with week for people and N500,000 per week for company our bodies, are too small.”

“The N500,000 in step with day for individuals and N3m consistent with day for corporate our bodies being applied in Abia, Lagos, Ogun, Rivers, FCT etc, have to be sustained throughout the us of a for now.

Olujimi speaks

Also, Senator Biodun Olujimi said, “When this difficulty got here out, everyone that spoke on that day agreed on what the CBN was about to do. However, we had been sceptical of positive troubles contained inside the thought.

“Why is that this happening for the duration of an election duration? Why is it that it’s miles coming now? There is a need to be flexible in what we are doing now.

Egistered them and took cash from them and now the ones people can best accomplish that little. It took all our unemployed graduates off the road. This coverage will send them again to the streets.

“The info were no longer clean to any people. If there had been a session, we won’t be wherein we’re these days. People might have gotten to recognize what is required of them and what’s required of the CBN.”

Other Senators who kicked in opposition to the implementation of the policy as deliberate from January 9, 2023, have been Ibrahim Hassan Hadeija (APC Jigawa North East) etc .

“The committee we have put in location need to go lower back and speak to the CBN to relax this measure. The N20,000 according to day for the casual sector isn’t sellable.” – Senator Chukwuka Utazi

After the controversy and the competition of the lawmakers to the guidelines of the committees report, Omo-Agege positioned the difficulty to a voice word and despite the fact that the “Nay” had it, he ruled in favour of the ‘’yeah.’

Some Senators, Yusuf A Yusuf (APC Taraba Central), Degi Eremienyo (APC Bayelsa East) Francis Alimikhena (PDP Edo North), supported it in their separate contributions.

Senator Francis Alimikhena stated, “Let us attempt it and notice what it’s miles. For me, let us supply this coverage a risk.”

It is my opinion that we provide this coverage a hazard. If we maintain to speak about rural vicinity, we can in no way put in force new policy. If it doesn’t paintings properly then we will have an change.

Senator Yusuf stated he supported the policy as it would assist reduce inflation but also endorsed that the very best denomination ought to be N100 notes.