On the ongoing redesigned naira crisis in the country, and the deadline of 10th February 2023, which is fast approaching, Nigerian banks and POS operators have been accused of selling the new naira notes. The new notes are given to the highest bidders. Most people, who go to the bank to deposit old money and withdraw new money, are given old naira notes.
Redesigned Naira Crisis
The Central Bank of Nigeria, the ultimate bank in Nigeria, had complained a few days ago about the commercial banks’ failure and refusal to circulate the new naira currencies. They had advised that Nigerians should patronize POS operators since it is most of them that have these new notes available. However, the POS operators have resorted to selling the new notes.
The POS operators buy it from commercial banks. These operators, in turn, sell it to their customers. In Nsukka, Nigeria, Mr. Chijinkem reported that he bought the new 10,000 naira notes at the rate of 1,000 naira. He had gone to an operator to exchange the old money for a new one, and he had been charged an extra 1,000 naira.
For Nigerians in some other locations, it could be messier. In Lagos, people are reportedly buying the new money for as high as 2,000 naira for 10,000 naira. It is also high in other commercial locations in the country.
People are also charged when they go to purchase a series of goods at the hand of sellers. A driver stated that a filling station in his city charged him an extra 50 naira for every liter he bought because he had old money.
Nigerians, who are known to capitalize on any economic loophole and scarcity for economic gain, have capitalized on the naira redesign. Banks, POS operators, and traders charge money and make a profit from the scarcity of the new naira in circulation.
This matter won’t cease anytime soon. Since one of CBN’s intentions is to make the new currencies scarce to encourage a cashless policy among Nigerians, it’ll take a lot of time before the redesigned naira crisis stops. Even though the deadline is extended, Nigerians would still find it hard to cope.