The Central Bank of Nigeria (CBN) directed commercial banks to begin paying newly redesigned naira notes to customers over the counter as part of efforts to ease the ongoing cash shortage across the country. :contentReference[oaicite:0]{index=0}
The move came at a time when many Nigerians were experiencing difficulty accessing cash through ATMs and other channels following the implementation of the naira redesign policy. :contentReference[oaicite:1]{index=1}
Over-the-Counter Payments Introduced
According to the central bank, deposit money banks were instructed to commence over-the-counter disbursement of the new notes, with a daily payout limit set at ₦20,000 per customer. :contentReference[oaicite:2]{index=2}
The directive was intended to complement ATM withdrawals and ensure that more citizens could access the redesigned currency during the transition period.
Response to Cash Scarcity
The decision followed widespread reports of long queues at ATMs and limited availability of cash in banking halls. Many citizens struggled to obtain the new notes, leading to disruptions in everyday transactions.
The shortage was linked to the rapid rollout of the currency redesign program and the limited supply of new banknotes in circulation at the time. :contentReference[oaicite:3]{index=3}
CBN Addresses Abuse of Currency
Alongside the directive, the central bank warned against illegal activities such as the sale and misuse of naira notes. Authorities stated that enforcement agencies would take action against individuals found abusing or trading the currency. :contentReference[oaicite:4]{index=4}
Officials emphasized that such practices undermined the effectiveness of the monetary policy and contributed to distribution challenges.
Policy Context and Objectives
The over-the-counter payment directive formed part of broader efforts by the CBN to stabilize the situation during the currency swap process. The naira redesign policy was introduced to reduce cash held outside the banking system and improve control over money supply.
Authorities also aimed to encourage the adoption of digital payment systems as part of a long-term transition toward a cashless economy.
Impact on the Public
Despite the introduction of over-the-counter payments, many Nigerians continued to face challenges accessing cash, especially in rural and underserved areas. The situation sparked public debate about the implementation of the policy and its impact on daily economic activities.
For businesses and individuals, the scarcity highlighted the importance of reliable financial infrastructure and effective distribution systems during large-scale economic reforms.
Ongoing Developments
The situation evolved rapidly in the weeks that followed, with additional policy adjustments, legal interventions, and extensions to deadlines introduced by authorities.
The episode remains a key example of the challenges associated with implementing major monetary changes in a cash-dependent economy.