CBN orders over-the-counter payments of new notes

In a U-turn, the Central Bank of Nigeria (CBN) has ordered banks to start giving customers new Naira notes over the counter (OTC).

The directive, according to the country's top bank, was made to shorten lines outside Automated Teller Machines (ATMs) everywhere.

The instruction was given by CBN Governor Godiwn Emefiele on Thursday in Abuja.

According to a statement from the CBN's Director of Corporate Communication, Osita Nwanisobi, banks can only hand out N20,000 of the new notes to people each day.

The statement reads: “The Governor, Mr. Godwin Emefiele, has directed Deposit Money Banks (DMBs) to commence the payment of the redesigned Naira notes over the counter, subject to a maximum daily payout limit of N20,000”.

To ensure the effective distribution of the newly introduced naira banknotes, the CBN urged Nigerians “to exercise patience as the CBN is working assiduously to address the challenge of queues at ATMs”.

Speaking about the lengthy lines at ATM locations, Nwanisiobi bemoaned "an escalating tendency in the incidents of people hoarding and accumulating the newly introduced currencies" around the nation.

He claimed that for reasons best known to them, these individuals "seriously obtain cash from ATMs. The reported instances of unregistered individuals and non-bank officials exchanging banknotes for members of the public while ostensibly acting on behalf of the CBN are also concerning.

Nigerians were urged by the CBN spokesman to "embrace and adopt other payment channels for their transactions."

“There are moves now by the CBN and security agencies to go after partygoers who abuse the Naira. In the same statement, Nwanisiobi said “it is unlawful to sell the Naira, hurl (spray), or stamp on the currency under any circumstance whatsoever” describing those engaging in these practices as “unpatriotic persons”.

The CBN expressed its displeasure in particular with individuals "who sell the newly redesigned banknotes and those who flagrantly abuse the legal tender by flinging wads of Naira notes in the air and stamping on the currency during social occasions."