No Extension of the Feb 10 Deadline on Naira Swap – Central Bank of Nigeria (CBN)

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, said on Friday that the February 10 deadline for the old and new naira notes swap will not be extended.

Emefiele disclosed this during a special briefing at the CBN office in Lagos. He said that the apex bank is working with other stakeholders to mitigate pressures undermining successful implementation of the policy.

“I would say no. I am sure that people are going to say only last week I said no, but I want to say unfortunately again, this time we will not be looking at extension of deadline because we as the central bank, deposit money banks and other important stakeholders, we are looking at areas where there is pressure and we are doing everything possible to address those areas of pressure.

“We have had cases where some bank branches have some cash in their vaults and because there was no demand for them and we asked central bank officials when reported to move those monies away and move them to areas where there is pressure. So those are some of the logistical challenges that we faced and we are doing everything possible to address them. So I am not going to make any promise to anyone that there would be any further extension of this deadline,” Emefiele said.

Emefiele reiterated the CBN’s position following a visit by APC governors to President Muhammadu Buhari on Friday, in an effort to convince them to discontinue the currency swap exercise. He said the central bank is aware of the pains Nigerians are facing to access the new naira notes.

As an alternative, the CBN governor said the currency swap exercise will be extended to microfinance banks, and the apex bank will engage the services of 30,000 super agents in the hinterlands as part of new measures to accelerate the circulation of new naira notes. He added that the central bank is in talks with banks to make easily accessible alternative channels available to the public.

As part of the CBN’s efforts to ensure sufficient circulation of the new naira notes, Emefiele has asked Point of Sales (PoS) agents to stop exorbitant charges on transactions as access to the new naira notes via ATMs tightens.

”I am going to be calling a meeting with the banks this evening or by tomorrow, if those charges go to or those charges have been charged through the bank, we are going to have an arrangement with even telcos to see how those charges can actually at this time be stopped.

“Those charges at this time should be stopped. So, if we know whatever you are making that you’re not making because we stopped it, we can collect it somewhere and look for a way to pay you.

“But we don’t want you to continue to create pain on those who want to use alternative channels when they cannot have cash in their pocket.

“We will go into this later this night or even tomorrow, we’re going to call a meeting of both the banks and the mobile networks; at this time nobody should be charged, if you are charged, we will need to know about it.

“But we would want this service to continue to be offered. Whatever it is in terms of volume and number that you have carried out. We will look for a way to pay you your money,” he said.

Experts have called on the CBN to suspend charges on all banks’ electronic transactions, as cash becomes limited in the face of the naira swap exercise, forcing individuals and businesses to rely on bank transfers and PoS services as alternatives.

Buhari had on Friday, told the APC governors that his government is doing everything to address the policy implementation hindrances, questioning banks’ commitment to its success.

He’d asked the Progressive Governors Forum (PGF) to give him seven days to provide an answer to their request.

“I am aware of the cash shortages and hardship being faced by people and businesses, on account of the Naira redesign. I want to assure you that we are doing everything to resolve these issues. Nigerians should expect significant improvements between now and the February 10 deadline.

“I met with a delegation of Governors today, on the matter. All the complaints about the execution of the currency change are being seriously looked into. I will ensure that everything is resolved in a lasting manner, and we will all enjoy the long-term benefits of the decision,” he said.