JUST IN: EMEFIELE ASSURES NATIONAL ASSEMBLY THAT BANKS WILL COLLECT OLD NAIRA NOTES AFTER FEBRUARY 17 DEADLINE
Read Time:1 Minute, 47 Second
By Aishat Momoh. O.
Godwin Emefiele, the governor of the Central Bank, has stated that commercial banks must continue to accept old Naira notes even after the February 10 deadline has passed.
When testifying before the House of Representatives ad hoc committee looking into the implementation of the policy on Tuesday, Mr. Emefiele made the announcement.
The CBN governor declared that he supports CBN Act Section 20(3), which mandates that commercial banks must accept outdated currencies after a certain period of time.
Section 20 (3) of the Act says: “Notwithstanding Sub-sections (1) and (2) of this section, the Bank shall have power, if directed to do so by the President and after giving reasonable notice in that behalf, to call in any of its notes or coins on payment of the face value thereof and any note or coin with respect to which a notice has been given under this Sub-section, shall, on the expiration of the notice, cease to be legal tender, but, subject to section 22 of this Act, shall be redeemed by the Bank upon demand.”
Commercial banks must accept the funds even after the deadline of February 10th, according to Mr. Emefiele.
The lawmakers stress that it must be months, not days, despite Mr. Emefiele’s announcement on Sunday that February 17 will serve as the “grace period” for Nigerians to deposit the money.
During his speech, the CBN Governor said “the law which says even after the old currency has lost its legal tender status that we are mandated to collect these money. And I stand with the House of Reps on this. What does that mean? It could have lost its legal tender status which means we have moved on.
“But if you have your money that you have not been able to send to the bank we will certainly give you the opportunity to bring them back into the CBN to redeem it. Either you pay it to your bank account or you want to do an exchange—we will give you. You will not lose your money. This is the assurance I give to Nigerians,” he said.
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