Nigeria’s attempts to call back old currency notes and replace them with new ones to fight hoarding and inflation have led to violent protests in several parts of the country.
Following a shortage of cash at Automated Teller Machines (ATMs) and businesses reportedly refusing to accept old currency notes, angry people resorted to the burning of two banks and two vehicles in Delta State. Warri and Benin City have also witnessed angry protests on the shortage of new banknotes. Last week, two people were killed in clashes over
The agitation comes just days before the country would go to polls on December 25 to elect a new President. The Central Bank of Nigeria (CBN) has redesigned notes of 200, 500, and 1000 denominations to prevent hoarding and get the money back into the formal banking system. But banks seem to be unable to replace all the old notes that are coming for replacement due to a shortage of new notes.
In December, the Nigerian central bank imposed a limit of $45 worth of naira a day on cash withdrawals. Beyond that limit, people were supposed to use the alternatives including its CBDC, eNaira. The move was aimed at monitoring individual payments to check corruption and hoarding of illicit money in cash. For larger withdrawals, customers are required to pay a processing fee of 5% and 10%.
