Nigerian President Muhammadu Buhari on Thursday gave approval to the central bank to extend the deadline to exchange old banknotes by 60 days until Monday, April 10, reported The Africa News.
Last year, Nigeria’s central bank began circulation of newly designed 200, 500, and 1,000 naira notes. The deadline to exchange the old notes was already extended once to Feb. 10, after which they would no longer be legal tender.
However, last week, the country’s Supreme Court suspended the deadline, after the International Monetary Fund (IMF) voiced concern over disruptions to trade and payments.
In a televised address on Thursday, Nigerian President Buhari said the old 200 naira notes would remain legal tender for another 60 days.
He also said that people can continue to exchange the old 500 and 1,000 naira notes at the central bank and other designated places until 10 April.
Mr. Buhari blamed unscrupulous officials in the banking industry for the difficulties in implementing the new policy.
“I am deeply pained and sincerely sympathize with you all over these unintended outcomes,” the Nigerian president said.
Nigerians have been struggling with a shortage in cash since the Nigerian Central Bank began to swap old bills of the local naira currency for new, re-designed ones, leading to a shortfall in banknotes.
The scarcity of banknotes has led to violent protests in major cities as angry and frustrated bank customers attacked and vandalized banks and blocked roads. Notably, a large number of people working in Nigeria’s informal economy and in transport use cash for transactions rather than banking apps.
Nigeria’s presidential elections are due on 25 February. Mr. Buhari is stepping down after completing his two terms. The leading contenders for the presidency are Bola Tinubu from the APC, ) and Atiku Abubakar from the Peoples Democratic Party (PDP).
