Cautions Nigerians on fake notes, urges vigilance
BY EDMOND ODOK – Still rejigging its system to comply with the recent Supreme Court ruling that all banknotes remain legal tender, ad infinitum, beyond the initial 31 December 2023 deadline, the Central Bank of Nigeria (CBN) has attributed the current scarcity of Naira notes in the country to the huge cash withdrawals by Deposit Money Banks (DMBs).
Against the backdrop of mounting complaints by most bank customers regarding the scarcity of Naira notes at the counters, Automated Teller Machines (ATMs), Points of Sale (PoS), and Bureaux de Change (BDCs) nationwide, the apex bank also blamed the unfortunate development on panic withdrawals by banks’ customers.
A statement by the CBN’s Corporate Communications Department said the seeming currency scarcity was due to banks’ large volume withdrawals of cash from various CBN branches in addition to panic withdrawals by customers ahead of the yuletide season.
Assuring the public that there is no shortage of Naira notes as peddled in some quarters, the apex bank confirmed that there is an adequate supply of the currency in the economy, saying; “The attention of the CBN has been drawn to reports of alleged scarcity of cash at banks, ATMs, PoS and BDCs in some major cities across the country.
“Our findings reveal that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by DMBs and panic withdrawals by customers from the ATMs.
“While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country.
“The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation.”
Meanwhile, amid the complaints by stakeholders in the banking industry regarding the biting scarcity of the Naira for their daily businesses, the CBN has alerted Nigerians and banks to beware of counterfeit bank notes currently circulating in the country.
Cautioning that the higher denominations being spent in the food markets and other commercial hubs across the country are mostly affected by the devious plans, the apex bank reminded members of the public that it is an offence punishable by imprisonment for any person to falsify, make, or counterfeit any bank note or coin issued by the CBN.
In a statement signed by its Acting Director, Corporate Communications, Mrs. Sidi Ali-Hakama, the CBN said, “The attention of the CBN has been drawn to the circulation of counterfeit banknotes, especially higher denominations, by some individuals for transactions in food markets and other commercial centres across major cities in the country.
“For the avoidance of doubt, Section 20(4) of the CBN Act (2007), as amended, states that it shall be an offense punishable by a term of imprisonment of not less than 5 years for any person to falsify, make, or counterfeit any bank note or coin issued by the Bank which is legal tender in Nigeria.
“The CBN is in constant collaboration with relevant security and financial agencies to confiscate fake Naira banknotes, arrest and prosecute counterfeiters.
“Members of the public are also encouraged to report anyone suspected of having counterfeit naira notes to the nearest police station, branch of the CBN, or via contactcbn@cbn.gov.ng.
“Meanwhile, all Deposit Money Banks, Financial Houses and Bureau de Change and the general public are enjoined to be more vigilant and take all necessary precautionary measures to curtail the acceptance and distribution of counterfeit notes.
“Furthermore, the general public is encouraged to embrace alternative modes of payment, e-channels, for day-to-day transactions to mitigate the risk of spreading counterfeit banknotes.”
