Due to cash scarcities that have stoked anger ahead of this month’s presidential and parliamentary elections, Nigerian President Muhammadu Buhari mandated the central bank to extend the date for turning in some old banknotes until April 10.
In 2013, the Central Bank of Nigeria issued notes of 1,000 (US$2.17), 500 (US$1.08), and 200 (US$0.43). Formerly invalid currency can now be turned in until February 10.
However, there has been a shortage of the new currency. Hence, leading to chaos and long wait times at banks across the country.
In a television address, Buhari confirmed that the old 200-naira notes will remain in circulation. Alongside the new 1,000-, 500-, and 200-naira notes until April 10.
However, he emphasized the only places where the 1,000 and 500 notes can be exchanged are at the central bank and “designated points.”
These comments stand in sharp contrast to an interim ruling issued by the Supreme Court last week. Which stated that all old currency is legal tender until the court hears a challenge brought by some state governments.
Buhari defended the plan by saying it would decrease the money supply. While it increases transparency in financial transactions.
Although there were hiccups at the outset, “benefits have surfaced from the policy initiative,” Buhari said.
In light of the widespread use of untraceable cash in political campaigns, some politicians have criticized the timing of this report just weeks before the February 25 election.
There have been protests over cash shortages in southern Nigeria, and on Thursday.
Local media reported that some angry citizens had vandalized cash dispensing machines at some banks.
