Nigeria’s Buhari extends deadline to turn in old banknotes

A word swap has led to money shortages throughout the nation as Nigeria heads for elections on February 25.

Nigeria's Muhammadu Buhari stated in a tv broadcast that previous 200-naira notes would proceed to flow into within the economic system alongside new 1,000, 500 and 200 notes till April 10 [File: Drew Angerer/Getty Images]

Nigeria’s President Muhammadu Buhari on Thursday gave approval to the central financial institution to increase the deadline to show in some previous banknotes till April 10 after money shortages stoked anger earlier than presidential and parliamentary elections later this month.

Final 12 months, Nigeria’s central financial institution determined to begin circulating newly designed 1,000 ($2.17) 500 ($1.08) and 200 ($0.43) naira notes. The deadline to show in previous notes has already been prolonged as soon as to February 10, after which they might not have been authorized tender.

However the brand new notes have been in brief provide, resulting in lengthy queues and chaotic scenes at banks throughout the nation. Most of Nigeria’s economic system continues to be casual and many individuals use money for transactions as a result of they don't have financial institution accounts.

Buhari stated in a tv broadcast that previous 200-naira notes would proceed to flow into within the economic system alongside new 1,000, 500 and 200 notes till April 10.

However the previous 1,000 and 500 notes may solely be swapped on the central financial institution and “designated factors”, he stated.

The feedback contrasted with final week’s Supreme Courtroom interim ruling that stated all previous notes stay authorized tender till it hears a problem introduced by some state governments.

Buhari defended the initiative, saying it will result in higher transparency in monetary transactions, curb cash laundering and scale back the cash provide within the economic system.

“However the preliminary setbacks skilled, the analysis and suggestions mechanism arrange has revealed that positive aspects have emerged from the coverage initiative,” stated Buhari.

Some politicians have criticised the timing earlier than February 25 elections, as campaigns are funded by money that's principally exhausting to hint.

Native media reported on Thursday that some indignant residents had vandalised money shelling out machines at some banks in southern Nigeria as they protested towards the money shortages.