TheNewsGuru

Tag: Naira

  • Bank workers open up on Naira scarcity

    Bank workers open up on Naira scarcity

    The Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) has attributed the current naira scarcity to panic withdrawals by bank customers.

    Its President, Mr Olusoji Oluwole, in a statement on Wednesday in Lagos, said such withdrawals were done out of fear of the sufferings and hardship experienced earlier in the year.

    He said that activities of ignorant and unscrupulous persons who elected to hoard the naira notes for unethical gains, inflicting pains and hardship on innocent and vulnerable fellow Nigerians, was also contributory.

    Oluwole urged those hoarding the naira notes to desist from it, saying, such actions were adding to the surging inflation bedevilling the economy.

    The labour leader also urged the general public not to make panic withdrawals, saying, “ the Central Bank of Nigeria has announced indefinite acceptance of the old denominations as a legal tender.”

    He urged the union members, who were in interface between Money Deposit Banks and the general public, to remain focused.

    Oluwole also urged the members to avoid distractions in the discharge of their responsibilities as the CBN continued to work with banks to ensure adequate supply and distribution of naira notes.

    “ASSBIFI commends the resilience of bank workers, and advises the general pubic to remain calm and safe by desisting from holding excess cash that may put them at unnecessary risk, “ Oluwole said.

  • NLC berates CBN over Naira scarcity

    NLC berates CBN over Naira scarcity

    The Nigeria Labour Congress (NLC) has lambasted the Central Bank of Nigeria (CBN) over the prevailing scarcity in the circulation of Naira notes.

    The labour union lambasted the apex bank, saying it is a fairy tale to continue to brandish cash hoarding as an excuse for the scarcity.

    Mr Joe Ajaero, NLC President said this on Tuesday in a statement titled “Cash Crunch: An incitement of Nigerians”.

    Mr Ajaero urged the Federal Government to address the current cash crunch in the country to prevent hardships on its citizens.

    Ajaero said the congress was deeply concerned about the recent cash crunch that had gripped the Nigerian economy, particularly as the nation approached the festive season.

    According to him, the economic challenge has far-reaching implications for the citizens of the great nation.

    “There is need for urgent steps to be taken to address this issue to prevent further hardships for the already suffering Nigerian populace,” he said.

    He, however, alleged that the last cash crunch earlier in the year was orchestrated by the ill-conceived and ill-implemented currency redesign policy of the immediate past.

    He added that the sorrow that botched the exercise foisted on the citizens was not what Nigerians wished to witness again in one year.

    “Nigerians are spending more time in the banks trying to source for cash not for monies that are not in their accounts but for their own money.

    “This is undermining confidence of the public in the banks and may discourage the citizenry from participating actively in banking.

    “It is shameful that Nigerians would have to spend a lot of money to gain access to their hard-earned income.

    “We are creating another avenue for economic rentiers such as the POS operators and their collaborators in the banks to fleece Nigerians,” he said.

    The NLC president added that this was subjecting citizens again to spend their meagre salaries buying money, automatically devaluing their income.

    He therefore said the NLC recognised the importance of a vibrant economy, and believed that it was in the interest of the nation to ensure that the citizens would enjoy the festive season without undue financial strain.

    “We call on the government to take immediate and decisive action to alleviate the cash crunch and mitigate its impact on the people.

    “Government should therefore explore measures to inject liquidity into the economy, ensuring that there is sufficient cash flow to meet the demands of businesses and individuals.

    “It is a fairy tale to continue brandishing cash hoarding as an excuse. Nigerians want their money and it should be made available to them.

    “Excuses are not what Nigerians want to hear but access to their money,” he said.

    Ajaero urged the government to collaborate with other financial institutions to improve banking services.

    He said they should also ensure the availability of cash at ATMs and bank branches to facilitate easy access for the public.

  • Why people are hoarding Naira notes – CBN Gov

    Why people are hoarding Naira notes – CBN Gov

    Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso has said apprehension surrounding the end date of the Naira redesign policy triggered widespread hoarding.

    TheNewsGuru.com (TNG) reports Cardoso said this on Wednesday in Abuja at the launch of the World Bank Nigeria Development Update.

    The CBN Governor, who stressed this has contributed to the prevailing cash scarcity, gave a glimmer of hope.

    Cardoso said the Supreme Court’s recent ruling, upholding the validity of the old notes beyond the initial deadline, will alleviate apprehensions and incentivize individuals to release hoarded cash into circulation.

    “Unfortunately, the history of that lies with the Naira redesign policy. Coming to the end of the year, way before the third quarter, there was a lot of apprehension with respect to where this was all going to end; and whether the old currency would no longer be good for legal tender and many started hoardings.

    “The apprehension surrounding the policy’s end date, well before the third quarter, triggered widespread hoarding. Many feared the old notes would lose legal tender status, prompting them to hold onto their cash.

    “This is really what happened. Happily, Supreme Court has decided that the currency will be valid post-end of the year,” the CBN Governor said.

    Cardoso acknowledged the “glaring defects” in various CBN policies and announced a comprehensive review initiative.

    “We are taking a thorough look at all our policies implemented over time. This review aims to produce an elegant document outlining clear rules and procedures for navigating the Nigerian money market,” he said.

  • Naira scarcity: We have N3.4trn in circulation – CBN

    Naira scarcity: We have N3.4trn in circulation – CBN

    The Central Bank of Nigeria (CBN) has reassured Nigerians of enough Naira notes in circulation, to carter for their cash needs.

    CBN’s Acting Director, Corporate Communications, Mrs Hakama Ali, gave the assurance in a statement on Wednesday.

    There has been complaints of a perennial shortage of Naira notes by bank customers across the country.

    Ali said that Naira notes in circulation had increased from one trillion Naira in February to N3.4 trillion in December.

    This, according to her, indicats that there is sufficient cash in circulation, except that the cash is in the hands of individuals who are apprehensive due to their previous experiences.

    She said that the apex bank was addressing the reported cases of cash scarcity in some major cities across the country.

    She attributed the situation to the hoarding of the Naira by some persons due to challenges experienced during the Naira redesign project.

    She said that the CBN was monitoring the situation and had released sufficient cash to its branches across the country for onward distribution to Deposit Money Banks (DMBs).

    “The CBN has adequate cash to meet the day-to-day transaction needs of Nigerians.

    “We appeal to Nigerians to be patient while the CBN does the needful to ensure the availability of cash, particularly during the yuletide and beyond,” she said.

    She urged Nigerians to continue to accept all Naira banknotes for their daily transactions, while urging the public to embrace alternative modes of payment, e-channels, to reduce pressure on the use of physical cash.

  • How Emefiele’s Naira redesign threatened food security in Nigeria

    How Emefiele’s Naira redesign threatened food security in Nigeria

    Minister of Agriculture and Food Security, Senator Abubakar Kyari has disclosed how the Naira redesign policy, carried out by former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele threatened food security in Nigeria.

    TheNewsGuru.com (TNG) reports Kyari made the disclosure when he appeared before a joint committee of the National Assembly (NASS) chaired by Senator Saliu Mustapha for the defence of his Ministry’s 2024 budget

    In his presentation, the Agriculture Minister stressed the Naira redesign policy ran farmers bankrupt, adding that the focus of the his ministry’s 2024 budgetary proposals for the sector was to achieve food security in the country.

    He said several factors, including insecurity and the naira redesign policy impoverished the farmers and severely threatened food security in the country.

    “The cash crunch caused by the Naira redesign made most of the farmers sell their farm produce at giveaway prices for survival since buyers could not access cash to buy the produce from them.

    “The policy, which coincided with the harvest season, ended up rendering the farmers empty financially,” he said.

    In their separate remarks at the session, the lawmaker representing Toro Federal Constituency in Bauchi State, Dahiru Haruna; and the lawmaker for  Shomolu Federal Constituency of Lagos State, Ademorin Kuye, said there was an urgent need for the Federal Government to address the high rate of hunger in the country largely caused by insecurity.

  • Why there is scarcity of Naira notes – CBN

    Why there is scarcity of Naira notes – CBN

    The Central Bank of Nigeria (CBN) has opened up on the prevailing scarcity in the supply of Naira notes.

    The apex bank said that the seeming currency scarcity was occasioned by large volume withdrawals of cash from various CBN branches by DMBs.

    It said that panic withdrawals by bank customers was also partly responsible for the seeming scarcity.

    “The attention of the CBN has been drawn to reports of alleged scarcity of cash at banks, ATMs, PoS and BDCs in some major cities across the country.

    “Our findings reveal that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by DMBs and panic withdrawals by customers from the ATMs,” the apex bank stated.

    There have been complaints by some bank customers on scarcity of Naira notes at the counters, Automated Teller Machines (ATMs) Points of Sale (PoS), and Bureaux de Change (BDCs).

    Some officials of Deposit Money Banks (DMBs) also claimed that the DMBs were not getting adequate supply of cash from the CBN.

    But, according to a statement issued by the Corporate Communications Department of the CBN, there is no shortage of Naira notes, as there is adequate supply of the currency in the economy.

    “While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country.

    “The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation,” it stated.

    The CBN advised members of the public to guard against panic withdrawals as there was sufficient stock to facilitate economic activities.

    It also advised Nigerians to embrace alternative modes of payment, which would reduce pressure on using physical cash.

    Meanwhile, the CBN also warned Nigerians to beware of fake Naira banknotes in circulation.

    Its Acting Director, Corporate Communications, Mrs Hakama Sidi-Ali, gave the warning in a  statement.

    Sidi-Ali said that the counterfeit Naira notes were mainly used for transactions in food markets and other commercial centres across major cities in the country.

    She said that any person found complicit in the circulation of the counterfeit currency notes would face severe sanctions.

    The director said that the law provided punishment by a term of imprisonment of not less than five years, for any person found culpable of counterfeiting Naira notes or any other legal tender in Nigeria.

    “The attention of the CBN) has been drawn to the circulation of counterfeit banknotes, especially higher denominations by some individuals.

    “The CBN is in constant collaboration with relevant security and financial agencies to confiscate fake Naira banknotes, arrest and prosecute counterfeiters.

    “Members of the public are also encouraged to report anyone suspected of having counterfeit naira notes to the nearest police station, branch of the CBN, or via contactcbn@cbn.gov.ng,” she said.

    She enjoined all DMBs, Financial Houses and Bureaux de Change and the general public to be more vigilant.

    Sidi-Ali urged them to take all necessary precautionary measures to curtail the acceptance and distribution of counterfeit notes.

    “Furthermore, the general public is encouraged to embrace alternative modes of payment for day-to-day transactions to mitigate the risk of spreading counterfeit banknotes,” she said.

  • CBN alerts public to fake Naira notes in circulation

    CBN alerts public to fake Naira notes in circulation

    The Central Bank of Nigeria (CBN) has alerted the general public to the circulation of counterfeit banknotes, especially higher denominations.

    TheNewsGuru.com (TNG) reports CBN to have said some individuals use the fake Naira notes for transactions in food markets and other commercial centres across major cities in the country.

    A statement by Sidi Ali, Hakama (Mrs.), CBN’s Acting Director of Corporate Communications, enjoined the general public to be more vigilant and take all necessary precautionary measures to curtail the acceptance and distribution of counterfeit notes.

    Hakama in the statement stressed that anyone caught in possession of the fake Naira notes would be arrested and prosecuted in line with Section 20(4) of the CBN Act (2007).

    The CBN statement titled: “Beware of Counterfeit Naira Banknotes in Circulation” reads in full below:

    “The attention of the Central Bank of Nigeria (CBN) has been drawn to the circulation of counterfeit banknotes, especially higher denominations, by some individuals for transactions in food markets and other commercial centres across major cities in the country.

    “For the avoidance of doubt, Section 20(4) of the CBN Act (2007) as amended, states that:

    “”It shall be an offence punishable by a term of imprisonment of not less than 5 years for any person to falsify, make or counterfeit any bank note or coin issued by the Bank which is legal tender in Nigeria.”

    “The CBN is in constant collaboration with relevant security and financial agencies to confiscate fake Naira banknotes, arrest and prosecute counterfeiters.

    “Members of the public are also encouraged to report anyone suspected of having counterfeit naira notes to the nearest police station, branch of the Central Bank of Nigeria or via contactcon@con.gov.ng.

    “Meanwhile, all Deposit Money Banks, Financial Houses and Bureau de Change and the general public are enjoined to be more vigilant and take all necessary precautionary measures to curtail the acceptance and distribution of counterfeit notes.

    “Furthermore, the general public is encouraged to embrace alternative modes of payment, channels, for day-to-day transactions to mitigate the risk of spreading counterfeit banknotes”.

  • Residents lament as Naira scarcity hits Abuja communities

    Residents lament as Naira scarcity hits Abuja communities

    Barely few days to the Christmas and New year celebration Some parts of the Federal Capital Territory, FCT, are beginning to experience scarcity of Naira.

    Findings show that about seven commercial banks in the AYA area of Abuja failed to dispense cash on Thursday.

    It was gathered that  these ATMs on Thursday evening, weren’t dispensing to the disappointment of many Abuja residents

    Further interrogations on some residents of these areas also show that the scarcity has been happening for about four days.

    It was observed that Point of Sales, POS, operators lined up in their numbers in front of those banks to make brisk business.

    One of the POS operators, who identified himself as Samuel, lamented that the ATMs have not been dispensing cash as expected.

    He noted that cash was only available at certain hours of the day.

    “Since we entered December these ATMs have not been dispensing as much.

    “There is naira scarcity and most likely it may be because we are approaching December, but only CBN can explain this new scarcity,” he said.

    This is coming amid the Central Bank of Nigeria, CBN, directive that both the old and the redesigned Naira notes remain legal tender and can co-exist in the country until further notice..

    The Supreme Court also in its judgment granted the prayers of the federal government to lift the December 31 extension deadline for the usage of N200, N500, and N1,000 notes.

    While responding to the judgement, the CBN had this to say: “To avoid doubt, the Supreme Court ordered that the old versions of N200, N500 and N1000 banknotes, alongside the redesigned versions, shall continue to be legal tender until further notice.

    “Accordingly, in line with Section 20(5) of the CBN Act 2007, all banknotes issued by the Central Bank of Nigeria will remain legal tender indefinitely.”

  • Unpredictable Naira: P&G to relocate from Nig after 31 years

    Unpredictable Naira: P&G to relocate from Nig after 31 years

    As the Naira continues to nosedive and becoming highly unpredictable, Procter & Gamble, a multinational consumer company, announced its plan to exit the largest African economy 31 years after coming to the country.

    On Wednesday, P&G chief financial officer Andre Schulten revealed that the company will turn Nigeria into an import-only market.

    Consequently, the company, makers of Always, Ariel, Oral B toothpaste, and other consumer goods will shut down its ultra-modern $300 million plant at Agbara, Ogun State, in 2017.

    “We’ve announced that we will turn Nigeria into an import-only market, effectively dissolving our footprint on the ground in Nigeria and reverting to an import-only model,” he said.

    He lamented the company’s portfolio drop to $50 million from $85 million.

    He added that the other reality in some of these markets is that it gets increasingly difficult to operate and create U.S. dollar value.

    “So, when you think about places like Nigeria and Argentina, it is difficult for us to operate because of the macroeconomic environment,” he added.

    Recall the development came months after GlaxoSmithKline Consumer Nigeria, another multinational company, had announced plans to exit Nigeria.

    Reacting, Dr Muda Yusuf, the Executive Director of the Centre for the Promotion of Private Enterprise (CPPE) and recently appointed member of the Nigeria Customs Service board said the recent devaluation of the naira poses significant challenges for any business with substantial foreign exchange exposure, highlighting the current reality of the Nigerian market.

    Businesses with foreign exchange exposure are struggling”, he stated.

    Also, Kalu Aja, a financial expert, disclosed on his official X handle that if this reality continues, no Small and Medium-sized Enterprises (SMEs) will be left in Nigeria.

    “As I keep saying, imports into Nigeria are cheaper. The economic implications are worse than an atomic bomb,” he wrote.

  • Naira falls again to N1,150/$1 at parallel market

    Naira falls again to N1,150/$1 at parallel market

    The Naira on Wednesday depreciated against the US dollar at the foreign exchange market for the second time running.

    Official data from FMDQ showed that the country’s currency depreciated to N840.53 against the dollar at the close of work on Wednesday compared to N830.97 the previous day.

    The depreciation represent N9.56 compared to the exchange rate at the close of work on Tuesday.

    This is the second time the country’s currency has depreciated on the official FX market since last week.

    Similarly, at the Parallel Market, Naira exchanged at N1,150/$1 on Wednesday from N1,130/$1 on Tuesday.

    Meanwhile, the country’s forex turnover increased by 61.86 per cent to $198.21 million.

    The development comes as the governor of the Central Bank of Nigeria (CBN), Dr Olayemi Cardoso, failed to hold a Monetary Policy Committee meeting for the second time in two months.

    Recall that the naira has continued to fluctuate in the FX market since CBN introduced reforms in June this year.