The Central Bank of Nigeria (CBN), on Frday, launched into what observers described as frantic efforts to stave off the planned strike by the Nigerian Labour Congress (NLC) over Naira scarcity.
The apex bank literally threw open its vaults for the commercial banks to access and circulate as much Naira notes as available.
Yet there are speculations that the volume of money available may be inadequate to meet the massive demand, given how starved the people have been of cash.
The NLC leadership met Friday on its planned strike, and resolved to monitor the CBN’s moves before taking a decision on its next line of action.
The Acting Director, Corporate Communications Department of the CBN, Dr. Isa AbdulMumin, said in a statement in Abuja yesterday that the apex bank had commenced evacuation of banknotes from its vaults to commercial banks across the country.
The evacuation, according to him, is “part of a coordinated effort to ease the circulation of banknotes of various denominations”.
The CBN directed all commercial banks to open for operation on Saturdays and Sundays from today.
AbdulMumin said that “a substantial amount of money, in various denominations, had been received by the commercial banks for onward circulation to their respective customers.”
The banks were directed to load their Automated Teller Machines (ATMs) and conduct physical operations in the banking halls through the weekends.
“Branches of commercial banks will operate on Saturdays and Sundays to attend to customers’ cash needs,” AbdulMumin said.
Governor of the CBN, Mr. Godwin Emefiele, is expected to “personally lead teams to monitor the level of compliance by the banks in various locations across the country on Monday.”
AbdulMumin, therefore, urged Nigerians to be patient as the current situation would ease soon with the injection of more banknotes into circulation.
The cash supply from the banks appeared to have improved on Friday in Abuja, as many banks in Garki Areas 7 and 8 attended to customers. Others were seen making withdrawals from ATMs in old notes.
The story was however different at Nyanyan on the outskirts of Abuja. Some banks had closed to customers as early as 12 noon because they had not received cash from their head offices.
Banks extend closing hours
Commercial banks on Friday extended closing hours to 5pm to enable them meet increased demand for cash by their customers.
The closing time extension, followed release of billions of old naira banknotes by the CBN to commercial bank headquarters, and subsequently to branches after months of chronic cash shortage.
At the Ibeju-Lekki Lagos branches of some commercial banks, the lenders were attending to customers up to 5.00pm as against the usual 3pm closing time.
The banks paid N20,000 across the counter and N10,000 through Automated Teller Machine (ATM) points.
“This is the first time I am accessing cash of this volume in nearly one month. I was able to make a cash withdrawal of N20,000 across the counter, and N10,000 from the ATM,” Michael Adigun, a customer with Fidelity Bank Ibeju-Lekki branch, said.
Many other bank customers were also able to make cash withdrawals across the counter, and also through ATMs.
The cash crunch followed two key programmes – the cash limit and naira redesign – being implemented by the CBN under its currency reforms programme.
The improved cash liquidity followed CBN’s confirmation of bank notes’ evacuation from its vaults to commercial banks across the country as part of a coordinated effort to ease the circulation of bank notes of various denominations.
The cash scarcity had continued over two weeks after the CBN asked banks to accept and pay old N200, N500 and N1,000 denominations.
Also on Friday, the CBN denied reports that it had suspended accounts of some Fintech firms.
Spokesman for the apex bank said reports that OPAY and Palmpay are suspended is “simply fake”.
NLC monitors development, to review planned strike Tuesday
Following the latest action by the CBN to ease naira circulation, the leadership of the Nigeria
Labour Congress (NLC) met in Abuja on Friday to discuss the situation.
NLC President, Joe Ajaero, reportedly said that the Congress is more interested in action than rhetoric.
He said it was not enough for the apex bank to promise releasing more cash into circulation.
Therefore, he said the NLC would deploy its officials to monitor the cash distribution promised by CBN, and then convene on Tuesday to review the situation.
He said whatever is achieved between now and Tuesday by the CBN will determine whether Labour should proceed with its planned strike slated to begin on Wednesday.
He said the issue of fuel scarcity would be addressed by the NLC after dealing with the Naira scarcity.
-Media Report