UBA Limits Daily Withdrawal Of New Naira Notes, As Scarcity Hits Banks

Nigerian banks are rationing the new naira notes, struggling to increase circulation, as the deadline to phase out the old legal tender nears.

Prime Business Africa reported that the Central Bank of Nigeria (CBN) redesigned the naira notes in the fourth quarter of last year, and gave January 31, 2023, as the deadline to phase out old notes. 

Commercial banks started dispensing the new naira notes to individuals and businesses in December 2022 over the counter, while the Auto Teller Machine (ATM) was still dispensing old banknotes due to a shortage of the new currency. 

However, last week, the central bank directed banks to halt over-the-counter withdrawal of the new naira notes, informing lenders to load their ATMs with the redesigned legal tender. 

In a message sent to its account holders, United Bank for Africa (UBA) said the firm is now dispensing the new currency via its ATM, however, withdrawal of the new notes is limited to N100,000.

“We are happy to inform you that the newly redesigned naira notes are now available at all UBA ATMs nationwide. 

“Please note that the maximum daily cash withdrawal limit for these notes at our ATMs is N100,000,” the statement reads. 

It was also gathered that banks are dispensing the N500 and N1,000 notes through their Auto Teller Machine, with the lower denomination, N200, available over the counter. 

Addressing the directive to banks, the central bank’s Director of Corporate Communication, Osita Nwanisobi, said the order was given to persuade banks to load their ATM, which is one of the most used channels for withdrawals across the country.

“There is what we call moral suasion; we had a meeting with the banks and we all agreed that we can begin to put the new notes in the ATMs so that people would see and boost circulation. 

“Yes, you can say it is a directive. We keep reviewing and my worry is by next week when new notes are being paid across the counter people would say they are flaunting. 

“We had a meeting and we had moral suasion because people are complaining they are not seeing new notes. So, that also doesn’t mean that banks cannot pay over the counter.”