The Central Bank of Nigeria has announced a cash swap strategy that will allow unbanked citizens in rural areas exchange their old naira notes for the newly recoloured ones as the deadline for the use of old naira notes draws closer.
The bank announced the development in a statement published on its website on Friday. It said the so-called cash swap policy will aid Nigerians living in rural areas to exchange their old naira notes for new ones from January 23.
“In addition to these measures and in recognition of the need to maximise the channels through which underserved and rural communities can exchange their Naira, the Bank is launching a cash swap programme in partnership with Super Agents & DMBs. The programme enables citizens in rural areas or those with limited access to formal financial services to exchange old Naira notes for redesigned notes,” the statement read.
The bank said cash swap agents will only be allowed to swap a maximum of N10,000 per individual, adding that amounts higher than that “may be treated as cash-in deposit into wallets or bank accounts in line with the cashless policy. BVN, NIN, or Voter’s card details of the customers should be captured as much as possible.”
The bank said those willing to deposit more than N10,000 without existing bank accounts will be mandated to open an account using the CBN’s integrated know-your-customer platform.
The development comes as Nigerians struggle to hold onto cash in the face of the recently implemented cash withdrawal policy and the gradual elimination of the old Naira note. The bank has set January 31, 2022, as the final deadline for all deposits to be made before the old notes would cease to be legal tender in Nigeria.
Initially, the apex bank set a weekly withdrawal cap of N100,000 and N500,000 for individuals and organizations, respectively.
Later, the National Assembly requested that the bank significantly increase the withdrawal restrictions in response to public outcry against the policy, and this resulted in an increase in the cash withdrawal limit.
The revised withdrawal cap permits weekly withdrawals of N5 million for organisations and N500,000 for individuals.
