Elizabeth O.
Naira scarcity: CBN in move to Stop NLC strike
OUTLINES
- Banks extend closing hours; to open branches on Saturday, Sunday
- available volume of money may be inadequate to meet the massive demand for now.
- Confirms evacuation of old notes to commercial banks
- The cash supply from the banks improved yesterday in Abuja as many banks in Garki Areas 7 and 8.
The apex bank opened its vaults for the commercial banks to access and circulate as much naira notes as available.
According to reports, the available volume of money may be inadequate to meet the massive demand for now.
The NLC leadership met yesterday on its planned strike and resolved to monitor the CBN moves to enable it decide on its next line of action.
The Acting Director, Corporate Communications Department of the CBN, Dr. Isa AbdulMumin, said in a statement in Abuja yesterday that the apex bank had commenced evacuation of banknotes from its vaults to commercial banks across the country.
The evacuation, according to him, is “part of a coordinated effort to ease the circulation of banknotes of various denominations”.
The CBN directed all commercial banks to open for operation on Saturdays and Sundays from today.
Dr. Isa AbdulMumin said that “a substantial amount of money, in various denominations, had been received by the commercial banks for onward circulation to their respective customers.”
The banks were directed to load their Automated Teller Machines (ATMs) and conduct physical operations in the banking halls through the weekends.
“Branches of commercial banks will operate on Saturdays and Sundays to attend to customers’ cash needs,” Isa AbdulMumin said.
Governor of the CBN, Godwin Emefiele, is expected to “personally lead teams to monitor the level of compliance by the banks in various locations across the country on Monday.”
Subsequently, The cash supply from the banks appeared to have improved yesterday in Abuja as many banks in Garki Areas 7 and 8 attended to customers. Others were seen making withdrawals from ATMs in old notes.
However, the story was different at Nyanyan on the outskirts of Abuja.
Some banks had closed to customers as early as 12 noon because they had not received cash from their head offices.
Banks extend closing hours
Commercial banks yesterday extended closing hours to 5 pm to enable them meet increased demand for cash by their customers.
Because of the issues, The closing time extension, followed release of billions of old naira banknotes by the CBN to commercial bank headquarters, and subsequently to branches after months of chronic cash shortage.
Alternatively , At the Ibeju-Lekki Lagos branches of some commercial banks, the lenders were attending to customers up to 5.00pm as against the usual 3 pm closing time.
However, Many other bank customers were also able to make cash withdrawals across the counter, and also through ATMs.
The cash crunch followed two key programmes – the cash limit and naira redesign – being implemented by the CBN under its currency reforms programme.
NLC monitors development, to review planned strike Tuesday
Now, Following the latest action by the CBN to ease naira circulation, the leadership of the Nigeria
Labour Congress (NLC) yesterday met in Abuja to discuss the situation.
NLC President, Joe Ajaero, told The Nation on the phone that congress was more interested in action than rhetoric.
However, He said it was not enough for the apex bank to promise releasing more cash into circulation.
Therefore, he said the NLC would deploy its officials to monitor the cash distribution promised by CBN,and then convene on Tuesday to review the situation.
Also, He said whatever is achieved between now and Tuesday by the CBN will determine whether labour should proceed with its planned strike slated to begin on Wednesday.
Further, He said the issue of fuel scarcity would be addressed by the NLC after dealing with the naira scarcity.
