Lagos, December 5, 2023: Despite the CBN’s directives allowing the use of both old and redesigned naira banknotes, some banks rationed the supply of cash to customers, causing dissatisfaction among those seeking withdrawals.
The banking regulator’s recent Supreme Court-backed order affirmed the legal tender status of old versions of N200, N500, and N1,000 banknotes, easing concerns about potential bans on certain denominations. However, cash scarcity persisted, with some attributing it to hoarded funds yet to re-enter circulation.
Officials from several banks noted a substantial increase in customers at their branches, with some expressing concerns about the potential difficulty in managing the anticipated rush. The scarcity of old and redesigned naira banknotes also continued, impacting cash availability at ATMs.
Massive crowds thronged banking halls across the country on Monday as customers rushed to link their bank verification numbers (BVN) and national identity numbers (NIN) to their bank accounts in compliance with a new directive from the banking regulator.
The Central Bank of Nigeria (CBN) had instructed banks on Friday to restrict access to accounts for customers who had not linked their BVN and NIN. The directive required existing customers to ensure that all operated accounts and wallets created through agents were fully profiled in the NIBSS ICAD and tagged with valid BVN and/or NIN.
With immediate effect, any unfunded account or wallet was to be placed on ‘Post no debit or credit’ until the linking process was completed. Starting March 1, 2024, funded accounts or wallets would face the same restrictions.
The move led to a surge in customers queuing at various banks for BVN and NIN linkages. Reports from branches of Zenith Bank, Guaranty Trust Bank, and First Bank indicated long queues of customers seeking to comply with the directive. The queues at GTBank remained considerable, reflecting the urgency of the compliance process.
As the rush for BVN and NIN linkage continues, banks may face challenges managing the surge in demand, prompting considerations of extended working hours and potential weekend operations to address the backlog.
