Amid the ongoing crisis rocking the Nigerian financial sector, which stems from the recently introduced naira redesign policy, the Chartered Institute of Bankers of Nigeria (CIBN) has debunked rumors that the Nigerian banking industry is under severe stress.
The CIBN said the banking industry is strong, focused and committed to addressing all the contending issues in the sector that were stoked days ago as Nigerians grapple with cash crunch.
Dr Ken Opara, the President of CIBN said this in a statement on Monday, adding that the industry was committed to restoring normalcy in the system.
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Last week, a rumor that the Central Bank of Nigeria (CBN) planned to shut down some commercial banks threw depositors into panic, prompting the apex court to issue a disclaimer.
Opara said the banking industry’s soundness has repeatedly been reaffirmed by the CBN, adding also that the reports that circulated last week about the central bank’s incapacity to print naira notes are not true.
“We equally like to allay the fears around the shortage of materials for printing the new naira notes, which the CBN has also discredited,” he said.
“This has also been debunked by the Nigeria Security Printing and Minting (NSPM) Company, which described the story as false, baseless and misleading.
“NSPM has assured that it has made adequate arrangement to continuously produce redesigned naira notes as well as other denominations.
“We implore the public to disregard any contrary information as the entire banking community remains focused, and committed,” he added.
Opara explained that the industry is also working round the clock to address all contending issues with a view to restoring normalcy.
The naira swap policy had pitted the public against deposit money banks, following allegation by the CBN that the banks were hoarding the new naira notes. Some banks were attacked with ATMs vandalized as desperation for cash hit the public.
The CBN had moved its earlier January 31 deadline to end the use of the old naira notes to February 10, following an emergency meeting between its governor Godwin Emefiele and President Muhammadu Buhari, which was necessitated by public outcry.
The naira swap policy has introduced varying degrees of responses from the public, including the rumor that the central bank planned to shut down some banks. Last week, three states; Kaduna, Kogi and Zamfara had filed a lawsuit before the Supreme Court, seeking to get the CBN to rescind the policy and allow both the old and new naira notes to coexist.
Though the apex court issued an ex parte order, restraining the CBN from implementing the February 10 deadline, the financial regulator is sticking to its own rule. Emefiele said on Tuesday that there is no need to shift the deadline because the situation has improved.
“The situation is substantially calming down since the commencement of over-the-counter payments to complement ATM disbursements and the use of super-agents.
“There is, therefore, no need to consider any shift from the deadline of February 10,” Emefiele said during a visit to the Ministry of Foreign Affairs to discuss the monetary and currency redesign policy.
The CBN said the cash deposit window is now open from February 15 – 17, 2013, 9 am to 2 pm daily. The financial regulator said the cash deposit program is not a cash swap program, therefore depositors will not be issued new notes, instead, their bank accounts will be credited after validation. The process may take up to four weeks.
The apex bank warned the public that third party depositors are not allowed. “The account provided must be that of the depositor,” it said.
It is not clear if the federal government will heed further order from the Supreme Court on the naira swap policy. The presidency said “the position of the government and the CBN will be made known upon the determination of the suit coming up [Wednesday].”