After Initially rejecting requests for an extension to the period when old naira notes could be returned, Nigeria’s Central Bank has now announced that the deadline has been pushed back to February 10. The Governor of the bank, Godwin Emefiele, reported that 30,000 “special agents” have been placed around the country to help with the exchange process.
CBN Governor Declares Currency Exchange Operation a Success
The Central Bank of Nigeria (CBN) recently announced it was extending the deadline for exchanging old naira notes by 10 days. On January 29th, the Governor of CBN, Godwin Emefiele, declared the operation a success, claiming that the bank had managed to remove more than 75% of the N2.7 Trillion [$5.86 billion] from the banking system.
The announcement came after many weeks of petitions from citizens who wanted extra time to return soon-to-be demonetized Naira notes. It was the recommendation of a report that the extension was granted. Banks are still distributing the old notes, however.
To ensure the CBN’s goal is achieved before the old notes are withdrawn, Emefiele stated that employees of the central bank, in conjunction with personnel from other banks, were mobilized and monitored by the Economic and Financial Crimes Commission (EFCC). Furthermore, the governor reported that some 30,000 special agents were deployed across the country to facilitate money exchange in areas not serviced by banks.
Targeting rural areas
Commenting on the progress achieved so far, Emefiele stated:
We are delighted that the operation has achieved a successful rate exceeding 75% of the N2.7 Trillion [$5.86 billion] excluded from the banking system.
The Governor further noted that he would permit citizens with legitimately earned cash to deposit their money at the CBN for alternative. He maintained that the bank’s goal is to assist, not just improve the effectiveness of its monetary policy. Nigeria’s security agencies will be supported in their fight against bandits, kidnappers and other criminals. With the CBN demonetizing the old notes, this will enable it to fulfill its mandate to overhaul its currency every 5 to 8 years, Emefiele added.
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