Despite the Central Bank of Nigeria’s assurance that old Naira notes will remain valid beyond the December 31 deadline, Akwa Ibom State is grappling with a resurgence of cash scarcity. Reports from SPRINGNEWS reveal that residents, particularly traders and filling station owners, are hoarding the new notes amid lingering concerns related to a Supreme Court order.
The fear stems from the Supreme Court’s directive that old notes would cease to be valid by December 31. To address this, the Federal government, represented by the Attorney General of the Federation, Lateef Fagbemi, approached the Supreme Court seeking to lift the deadline order. Fagbemi cited the current economic volatility and warned that adherence to the deadline could lead to a return of the economic crisis experienced during the cashless policy era of former CBN governor Godwin Emefiele.
Fagbemi emphasized, ‘The only way to save the nation from both of the above situations is to allow both the old and new notes to be used as legal tender until the required structures are put in place and proper consultation established.’
However, residents in Akwa Ibom are already engaging in panic withdrawals, reflecting skepticism about the federal government’s stance on the deadline. Some traders, who profited during the cashless policy by selling cash to Point Of Sales (POS) operators, have started hoarding cash.
Commercial banks in Uyo metropolis are grappling with cash scarcity, with most limiting over-the-counter withdrawals to no more than N20,000. This scarcity has led to frustration among customers, as illustrated by the experience of one bank customer, Koko Akpan, who struggled to withdraw the desired amount.
While some attribute the paucity of cash in banks to a decline in customer deposits, others criticize the Central Bank of Nigeria’s (CBN) handling of the situation. The inability of banks to meet customer withdrawal demands has forced some individuals to resort to POS transactions, where operators buy cash from traders in Uyo at reduced rates to sustain their businesses.
The situation has sparked discussions on local radio programs, with callers expressing dissatisfaction with the CBN’s role and condemning the hoarding of cash, which exacerbates hardships for the masses.
In the midst of these challenges, traders in markets like Itam Market have adopted cautious strategies, separating old and new notes and advising peers to hold onto the new currency until December 31 to assess the situation.
The overall scenario underscores the complexities surrounding the transition from old to new Naira notes and the need for effective communication and measures to ensure a smooth process.”