Why Buhari Approved Old Naira Deadline Extension – Emefiele

…says 75 percent of old banknotes now collected

…promises to punish banks that ‘sell’ new banknotes

The President, Major General Muhammadu Buhari (Retd), on Sunday in Daura approved the Central Bank of Nigeria’s request to extend the deadline for exchanging old naira notes with the redesigned notes from January 31, 2023 to 10 February 2023.

Buhari also approved a seven-day grace period running from February 10 to February 17, 2023, to allow Nigerians to deposit their old notes with the CBN, after which the old notes will no longer be legal tender.

CBN Governor Godwin Emefiele made the announcement to State House correspondents this Sunday, shortly after meeting the president at his mansion in Daura, Katsina state on Sunday.

He disclosed that 75 percent of the N2.7tn held outside the banking system had been recovered.

The governor said: “We are pleased that the exercise has so far achieved a success rate of more than 75 percent of the N2.7tn held outside the banking system. Nigerians in rural areas, villages, the elderly and the vulnerable have had the opportunity to exchange their old notes; utilizing the Agent Naira Swap Initiative and the CBN Awareness Team nationwide awareness team exercise.

“Apart from those who have illicit/stolen naira in their homes for speculative purposes, we aim to give all Nigerians who have legitimately earned and trapped naira the opportunity to deposit their legitimately captured funds with the CBN for exchange.

“Based on the foregoing, we have sought and obtained Mr. President’s approval for the following: 10-day extension of the deadline from January 31, 2023 to February 10, 2023; to be legally owned by Nigerians and achieve greater cash exchange success in our rural communities, after which all old notes outside the CBN will lose their legal tender status.

“Our CBN staff currently mass mobilizing and monitoring, along with EFCC and ICPC officials, will work together to achieve these objectives. A seven-day grace period commencing February 10 to February 17, 2023, in accordance with Sections 20(3) and 22 of the CBN Act, allowing Nigerians to deposit their old notes with the CBN after the February deadline when the old currency would have lost legal tender status.

“We therefore appeal to all Nigerians to work with the Central Bank of Nigeria to ensure that the implementation of this very important process for the program runs smoothly.”

Emefiele also vowed that Nigerians felt selling, misusing or spraying the new naira notes in public places will be “sanctioned” by the Economic and Financial Crimes Commission.

He said that each note has a unique number, which means that misused currencies can now be traced back to their users.

“For those involved in this, even if they are CBN employees, they will be penalized. We’ll follow them. Luckily those new naira notes have trackers, we have their numbers because they were issued.

“Once we see these numbers, we will track them and we will disclose those involved in the sale of new naira. While there are people suffering in the villages who need those new notes, we will deal with them.

“We have passed on a few videos to the EFCC and they will track down these people. It’s not about the CBN following them. What matters is that the EFCC or the ICPC and independent enforcement agencies go after them,” he said.