By Mathew Dadiya & Tony Obiechina, Abuja

Following mounting pressure from Nigerians and the corporate world, President Muhammadu Buhari yesterday approved a 10-day extension of the deadline for the swapping of currency to new notes.

Nigerians, including Senators and members of the House of Representatives have been pressurizing the Central Bank of Nigeria (CBN) to extend the January 31, 2023 deadline for the use of old Naira notes.

Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, who disclosed this to newsmen yesterday in Daura, said the new deadline for the old currency to seize becoming legal tender would be February 10, 2023.

Emefiele, who was in Daura yesterday, had a closed-door meeting with the Buhari, where he obtained the approval.

He said Nigerians, who were yet to change their Naira notes from the old to new ones, “now have an opportunity to do so”.

The apex bank’s governor however cautioned that people must utilize the opportunity because the deadline would not be extended again.

You may recall that the CBN had fixed Jan. 31 as the deadline for the legitimacy of the old Naira notes.

The redesigned Naira notes, comprising N200, N500 and N1, 000, became legal tender on Dec. 15, 2022, after they were unveiled by Buhari on Nov. 23, 2022, in Abuja.

President Muhammadu Buhari has reiterated that the currency changes were aimed at people hoarding illicit funds and not the common man and that it had become necessary to prevent counterfeits, corruption, and terrorist funding.

The President assured that government will ensure that citizens are unharmed in their businesses and no disruption is caused to the entire supply chain arising from the currency swap due to end shortly.

Buhari explained this at the weekend when he reacted to reports of long queues of people waiting for hours for their turn to deposit old notes and get new ones, triggering public anger and opposition criticism.

This, he assured, will stabilize and strengthen the economy.

While taking note that the poorest section of society is facing hardship as they often keep hard cash at home for various expenses, President Buhari gave strong assurances that the government will not leave them to their own fate.

The President also restated that a number of initiatives by the Central Bank and all commercial banks are underway to speed up the distribution of the new notes and do all that is necessary to forestall cash squeeze and chaos.

In a statement yesterday, the CBN Governor also solicited the cooperation of all Nigerians in ensuring a hitch-free process for the implementation of the policy, saying the apex bank has succeeded in recovering over 70 percent of the N2 trillion held out of the banking system.

“Based on the foregoing, we have sought and obtained Mr President’s approval for the following:  A 10-day extension of the deadline from January 31 to February 10 to allow for the collection of more old notes legitimately held by Nigerians.

“A 7-day grace period, beginning from February 10 to February 17, in compliance with Sections 20(3) and 22 of the CBN Act allowing Nigerians to deposit their old notes at the CBN after the February deadline when the old currency would have lost its Legal Tender Status,” the statement read.

The CBN Governor also solicited the cooperation of all Nigerians in ensuring a hitch-free process for the implementation of the policy.

“We are happy that so far, the exercise has achieved a success rate of over 70 percent of the N2 trillion held out of the banking system,” Emefiele added.

Before the apex bank extended the use of the naira note, many Nigerians experienced difficulty in lodging their old banknotes.

The scramble by many Nigerians to meet the initial January 31 deadline has been chaotic as many of them flood banking halls with huge cash in old notes to exchange them with new ones.

Others are seen in long queues at the few ATM points having the new naira notes in different parts of the country to have access.

This has necessitated the CBN directing the commercial banks on Friday to open for business on Saturday and Sunday.

Expert Hails CBN for Deadline Extension

Foremost economist and academic, Professor Uche Uwaleke has commended the Central Bank of Nigeria (CBN) for extending the deadline for the exchange of old Naira Notes for the redesigned currency from 31st January to February 10, 2023.

CBN Governor, Mr Godwin Emefiele who made the announcement in statement on Sunday, said President Muhammadu Buhari approved the change of deadline.

Uwaleke, who is Nigeria’s first professor of Capital market in a statement made available to Daily Asset in Abuja, described the apex Bank decision as a welcome development.

“The extension of the deadline for notes swap by the CBN till February 10 2023 with additional 7 days grace period is a welcome development and portrays the CBN as a responsive organisation that is sensitive to the yearnings of Nigerians.

“One recalls that when the CBN first placed a cash withdrawal limit of N20,000 per individual per day, it saw the need to revise it upward to N100,000 following reports that the limit was too low and causing a lot of hardship to the people.

“This deadline extension will reduce the queues at the ATM, reduce panic and uncertainty among small business owners in particular and more importantly allow more time for the new naira notes to circulate and more of the old ones returned to the CBN given that about N900 billion is still outside the banks as revealed by the CBN Governor.

“I commend the CBN for this move as well as the President for giving approval for an extension. It goes to demonstrate that the currency redesign was not designed abinitio to foist hardship on Nigerians.

“The fact that the new deadline is before the February 25 election is laudable as the measure will help reduce vote buying.

“Having extended the deadline by 10 days, the CBN should ensure that the banks are strictly complying with its distribution guidelines for new notes. It should equally, through sensitization efforts, discourage the current practice of rejection of old notes while they are still considered legal tender,” the statement read.

Buhari: Illicit Funds Hoarders Target of Policy

On Saturday, President Muhammadu Buhari explained that the currency changes were aimed at people hoarding illicit funds and not the common man, and that it had become necessary to prevent counterfeits, corruption, and terrorist funding.

The President assured that government will ensure that citizens are unharmed in their businesses and no disruption is caused to the entire supply chain arising from the currency swap due to end shortly.

Buhari explained this on Saturday when he reacted to reports of long queues of people waiting for hours for their turn to deposit old notes and get new ones, triggering public anger and opposition’s criticism.

This, he assured, will stabilize and strengthen the economy.

While taking note that the poorest section of society is facing hardship as they often keep hard cash at home for various expenses, President Buhari gave strong assurances that the government will not leave them to their own fate.

Buhari also restated that a number of initiatives by the Central Bank and all commercial banks are underway to speed up distribution of the new notes and do all that is necessary to forestall cash squeeze and chaos.