UPDATED – Cash Swap: CBN directs commercial banks to collect back ‘old’ N500, N1000 notes

*The Central Bank of Nigeria directs the Deposit Money Banks to start collecting back ‘old’ N500 and N1000 notes, but limits the maximum amount a bank can collect Over the Counter from consumers to N500,000

*Banks not directed to collect old N500, N1000, says CBN Spokesman 

Isola Moses | ConsumerConnect

Contrary to its earlier directive to the banking public, the Central Bank of Nigeria (CBN) has directed the Deposit Money Banks (DMBs) to start collecting the ‘old’ N500 and N1000 notes from consumers immediately.

ConsumerConnect learnt the Bankers’ Bank, however, pegged the maximum amount the banks can collect from a customer Over-the-Counter to N500,000.

Hitherto, the banking sector regulator had maintained that the three old currency denominations of N200, N500 and N1000 were no more legal tender in the West African country.

It, subsequently, asked Nigerians to fill a form online, generate a reference code, and take their old banknotes to a CBN Branch in any of the 36 states of the Federation for documentation and Naira swap.

An unnamed source from the Bank, nonetheless, Friday, February 17 reportedly, disclosed that the CBN has asked the banks to collect the old Naira notes instead of making consumers to head for the CBN Branch in a state.

The obvious difficulties consumers are encountering in the course of getting access to the Bank’s branches in the states of the Federation and Abuja, FCT, informed the Bank’s decision to adjust the currency swap modalities, according to report.

A CBN official also said: “Go to your bank but fill out the form before you go. Go with the reference code you generate.

“With your code, banks will collect it from you. But if it is more than 500,000, you will go to the CBN and deposit it.”

Banks not directed to collect old N500, N1000, clarifies CBN Spokesman 

Mr. Osita Nwanisobi Director of Corporate Communications at CBN, in a terse statement issued Friday, Friday, February 17, 2023, however, said: “For the avoidance of doubt, and in line with Mr . President’s broadcast of February 16, 2023, the CBN has been directed to ONLY reissue and recirculate the old N200 banknotes and this is expected to circulate as legal tender for 60 days up to April 10, 2023.”

The CBN also urged members of the public to disregard “any message or information not formally released by the Central Bank of Nigeria on this subject.”

Earlier, the CBN had opened a portal on its Web site, and made it mandatory for those willing to return old notes to fill and generate a reference code to complete the process.

It is also recalled that Mr. Godwin Emefiele, Governor of CBN, had directed the commercial banks to make the old N200 notes available to Nigerian consumers.

Emefiele’s directive was sequel to President Muhammadu Buhari’s pronouncement in his nationwide broadcast Thursday, February 16, that the old N200 notes would be legal tender till April 10, 2023.

Buhari also urged Nigerians to deposit their old N500 and 1000 notes with the CBN Branches across Nigeria.

Widespread protests, pandemonium over cash crunch, fuel scarcity

However, protests which had been rocking different states, including Edo, Oyo, Lagos, Ogun, and Abuja among others over the relative scarcity of the ‘new’ Naira notes.

The CBN’s latest directive to banks to collect higher denominations was said to have been activated after meeting with banks’ Chief Executives Thursday.

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