Some commercial banks in Kano state have reportedly been rejecting deposit transactions old notes of N200, N500 and N1000 since February 10, BizPoint has gathered.
BizPoint learnt that the new policy by the Central Bank of Nigeria, CBN, had already grounded business activities in the state, which is the commercial hub of Northern Nigeria.
In January, President Muhammadu Buhari approved the CBN’s request for the extension of the deadline for swapping of old Naira notes to the redesigned ones to February 10.
But, the CBN governor, Godwin Emefiele when he appeared before the House of Representatives ad-hoc committee on naira redesign and naira swap policy
last month, said commercial banks would continue to accept cash deposits of the old notes beyond the February 10 deadline, when they would cease to be legal tender.
However, checks by this newspaper had shown that some commercial banks in the second most populous state in the country are rejecting the old notes from customers, inflicting more hardship on the people of the state.
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A bank staff of one of the commercial banks in the state, who preferred not to be mentioned, said his branch had stopped receiving deposit transactions of old notes since on Monday.
According to him, as a staff, he did not know the reason why the bank stopped receiving deposits of old naira notes, lamenting that the decision is not good as it would inflict more hardship on people.
“I can not tell you why they are rejecting old notes deposits. They might be complying with the CBN deadline. However, even as that, the CBN Governor said commercial banks would continue accepting deposits of old N200, N500 and N1000 beyond the deadline.
“But this decision must worsen the situation. People are suffering, that is why I am lamenting,” the staff said.
A resident of Kano, who identified himself simply as Baba, said his mother sent him to deposit N30,000 of old N1000 note at a UBA branch but the money was rejected.
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Baba said when he asked the bank’s staff why they had rejected the transaction, they told him that they are directed not to receive old notes.
The situation, BizPoint learnt, had thrown residents of the state into confusion and rose tension as other business outlets were rejecting the old notes in the wake of today’s (Wednesday) Supreme Court ruling on the interim injunction filed by Zamfara, Kaduna and Kogi states against the CBN on the naira swap.
However, the Kano State government had swiftly intervened and threatened to sanction against banks and business operators who are found rejecting the old notes of N200, N500 and N1000.
The state government warned that it would not hesitate to revoke operational licenses of major business owners or take action on anyone who refuses to accept the old naira notes as a means of transaction.
Governor Abdullahi Umar Ganduje, who handed down the warning in a statement issued by the Commissioner for Information and Internal Affairs, Malam Muhammad Garba, insisted that the old naira notes are still a legal tender.
He said the Supreme Court was emphatic on its interim injunction on the issue of old naira notes which would continue to be used as legal tender hand in hand with the new ones untill gradual and final phase out.
The governor noted that it has come to the notice of the government that some business owners such as supermarkets, malls, banks, restaurants, hotels, traders in markets, filling stations, motor parks, among others, are in the habit of rejecting the old naira notes in business transaction.
Ganduje further observed that this non-acceptance by some selfish individuals is further worsening the already tensed situation exacerbated by the non-availability of the new naira notes.
“Business and economic activities are seriously affected by the naira redesign and unfortunately some self-centered individuals are cashing on the situation to cause further hardships on the people by not accepting the old naira notes during transactions,” the statement added.
He said the people have suffered enough untold hardship and therefore the state government would not fold it’s arms and allow few selfish elements in our midst to worsen the situation.
The governor called on the people in the state to continue with their lawful businesses and report anyone who refuses to accept the old naira notes to the appropriate quarters.
