Naira Swap: CBN Approves N20,000 Over-the-counter Payment
The Central Bank of Nigeria (CBN) has instructed deposit money banks (DMBs) to begin over-the-counter payment of the redesigned Naira notes, subject to a daily payout limit of N20,000.
The CBN further stated that those who hawk or misuse the Naira will be prosecuted.
This came after videos surfaced of Nigerians spraying bundles of the scarce newly redesigned notes at a social function.
This is despite the fact that the top bank has told Nigerians that the current cash shortage would soon be addressed, having instructed banks to distribute the new Naira notes over the counter.
Osita Nwanisobi, Director Corporate Communication, CBN, disclosed this in a statement, adding that the apex bank will work with the Nigeria Police, Federal Inland Revenue Service (FIRS), Economic and Financial Crimes Commission (EFCC), and Nigerian Financial Intelligence Unit (NFIU) to prosecute naira abusers and sellers.
The apex bank noted that, it “has observed, with grave concern, the activities of persons who sell the newly redesigned banknotes and those who flagrantly abuse the legal tender by hurling wads of Naira notes in the air and stamping on the currency at social functions.
"We have equally noticed the queues at Automated Teller Machines (ATMs) across the country and an upward trend in the cases of people stocking and aggregating the newly introduced banknotes they serially obtain from ATMs for reasons best known to them.
"While underlining our commitment to Nigerians to guarantee the proper distribution of freshly introduced Naira banknotes, we ask people to be patient as the CBN works tirelessly to address the issue of lineups at ATMs.
"In accordance with this determination, the governor, Mr. Godwin Emefiele, has authorized deposit money banks (DMBs) to begin over-the-counter payment of the redesigned Naira notes, subject to a daily payout limit of N20,000."
The apex bank also stated that "we wish to state unequivocally that, contrary to the practice of these unpatriotic persons, it is unlawful to sell, hurl (spray), or stamp on the currency under any circumstance whatsoever."
Warning Nigerians against abusing the naira at social functions or risk being arrested by law enforcement agencies, the apex bank said, for avoidance of doubt, Section 21(3) of the Central Bank of Nigeria(CBN) Act 2007 (As amended) stipulates that “spraying of, dancing or matching on the Naira or any note issued by the bank during social occasions or otherwise howsoever shall constitute an abuse and defacing of the Naira or such note and shall be punishable under the law by fines or imprisonment or both.”
Similarly, Section 21(4) states that, “It shall also be an offence punishable under Sub-section (1) of this section for any person to hawk, sell or otherwise trade in the Naira notes, coins or any other note issued by the Bank.”
Accordingly, CBN is collaborating with the Nigeria Police, Federal Inland Revenue Service (FIRS), the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU) to address the unpatriotic practice.
