Umamah Bakharia | ub@radioislam.co.za

2 min read
17 February 2023 | 23:25 CAT

Nigeria’s President Muhammadu Buhari has approved the central bank request to extend the deadline to turn in old banknotes until 10 April as the country holds its presidential and parliamentary elections later this month.

Nigerian President Muhammadu Buhari
Picture: Daily Post Nigeria

The deadline to turn in old notes has already been extended once to 10 February as Nigeria tries to move towards a cashless economy.

Last year, Nigeria’s central bank decided to start circulating newly designed 1,000 ($2.17) 500 ($1.08) and 200 ($0.43) naira notes.

However, the new notes have been in short supply which has led to long queues and chaos at banks across the country. As most of Nigeria’s economy is still informal, many people use cash for transactions because they do not have bank accounts.

In a televised address on Thursday, Buhari said that old 200-naira notes would continue to circulate in the economy with the new 1,000, 500 and 200 notes until the deadline date of 10 April.

The move towards a cashless system has been faced with widespread criticism as Nigeria runs on informal trade. However, Buhari defended the initiative, saying the move will lead to greater transparency in financial transactions, curb money laundering and reduce the money supply in the economy.

“Notwithstanding the initial setbacks experienced, the evaluation and feedback mechanism set up has revealed that gains have emerged from the policy initiative,” said Buhari.

Some politicians have criticised the timing of the transition as campaigns are funded by cash that is mostly hard to trace with Nigeria heading to the polls on 25 February.

Local media reported on Thursday that some angry citizens had vandalised ATMs at some banks in southern Nigeria as they protested against the cash shortages.