The Central Bank of Nigeria (CBN) has unveiled a new plan to protect rural dwellers and others who may be affected by the redesign of naira notes.
Last month, the financial regulator announced the decision to redesign N200, N500 and N1,000 notes in a move aimed at curtailing the amount of money outside the banks. The CBN also said the naira notes’ redesign will help in curbing money laundering, counterfeiting, terrorism and vote-buying as the 2023 general elections draw near.
However, while the move has been widely applauded, concerns have also been raised about it. The CBN said the redesigned notes will be released from Dec 15, and consumers have until Jan 31, 2023 to return the old notes to the banks. For rural dwellers, the unbanked and the underserved, meeting the deadline poses a challenge.
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Against this backdrop, the senate has also joined the call for the CBN to extend the deadline to accommodate those not adequately covered through financial inclusion.
In a statement titled: “Currency Redesign: CBN Commits to Protecting Nigerians in Unbanked, Underserved, and Rural Areas,” which was signed by CBN’s Director of Corporate Communications, Osita Nwanisobi, the apex bank said it has taken steps to ensure that the policy is duly implemented nationwide without causing any group of people financial harm.
The CBN said agent locations across the country have been fully enabled for BVN registration, opening banking accounts/wallets & e-Naira wallets, electronic card distribution, and cash deposit, among others. This is to enable rural dwellers to deposit their old naira notes before the deadline.
Read the press statement below:
Further to its Press Release of October 26, 2022, on the above subject, the Central Bank of Nigeria (CBN) is pleased to note the positive response of the banking public to the policy through increased currency deposits across banks and other financial institutions.
The CBN remains committed to the seamless implementation of the initiative to ensure the achievement of its objectives to preserve the integrity of the local legal tender by reducing the significant amount of cash outside the banking system and its use in criminal activities, curtail counterfeiting, and promote financial inclusion, amongst others.
Whilst noting the progressive increase in financial access points and alternative banking channels over the years (electronic/internet banking, mobile apps, ATM, Cards/PoS, eNaira, agent banking, etc.), the Bank acknowledges that these may not be evenly distributed across all geopolitical zones and in some rural areas. In operationalizing this initiative, the CBN has been collaborating with relevant agencies and other stakeholders in the financial system in its execution, particularly ensuring that vulnerable citizens are not disenfranchised.
Accordingly, the banking public in rural and/or underserved areas may access CBN branches in the 36 States of the Federation to enquire about options for depositing their current N200, N500, and N1,000 notes, wallet/account opening processes, financial access points, etc.
Furthermore, agent locations across the country have been fully enabled for BVN registration, opening banking accounts/wallets & e-Naira wallets, electronic card distribution, and cash deposit, among others. Due to the policy, the agents have also been accorded priority to enable them to deposit cash collections through bank branches across the federation.
The Bank shall continue to monitor developments and issue updates to the banking public on the implementation of the Naira redesign policy as may be necessary.