The deadline for the naira redesign policy ended initially on 31st January, 2023. I was actually looking for a smooth transition from the old naira to the newly redesigned note. But on he even of the deadline, a further 10days extension were granted by the Central Bank of Nigeria. So, I had thought that just after the deadline, everything will be fine.
After the deadline, what I first noticed was that there were pockets of queue around Automated Teller Machines (ATM). The “Nigerian factor” has set in, so I thought! But what was to come was much bigger than what I had expected. From queue around ATM to longer queue within the banking hall. I cannot even remember the last time; I entered the banking hall. Maybe when I went to collect my PTA for my last trip abroad and that was about a year ago. Good enough, I have another trip planned for summer, so I know for sure, I will visit the banking hall soon.
Back to the issue at hand, within the next 3 days, the queue went from a single line to multiple lines especially around the ATM at the bank head offices. Anger had flared amongst bank customers. I even saw an online video where customers stripped themselves naked because they need to get their money. Some cried while being recorded on video. I even heard that some took their mattresses to the bank branches to pass the night. Cash issue was a serious issue!
Where are all these confusions coming from? I also fell victim of some of the issue. I went to a high-end store to buy birthday gift to the one I love – don’t mind me, I want to use one stone to kill multiple birds – for birthday and valentine. I made a purchase and did point of sale (POS) transaction, only for the attendant to informed me that they have not received my money while I have already been debited. Because I need the item that night, I had to eventually do another bank transfer which they eventually confirmed that received before they could allow me take the item out. To cut a long story short, I did not get a reversal of the first transaction until 15days after!
I think the banking system was at a trying time, the network was overwhelmed by the number of transactions witnessed due to the redesign policy. The shift from cash based to cashless was too swift and massive. The bank infrastructure might have never witnessed such within a short period before. This created glitches on the network of most banks, thereby turning our most effective and preferred bank to a mere building with poor network.
On the cash side, I feel people just want to hold cash for mere speculative purposes. Some people do not have business queueing at the bank ATM. Even the POS agent, I heard were exchanging naira for a fee above the regulatory determined rate. Why then will I want to go “buy Naira” with my Naira? I will rather keep the small note than exchanging it for a higher fee.
I woke up to the President’s speech this morning that the policy has been extended to April 10. This is good news to all of us especially those that are indifferent to the policy in the first place like me. Anyway, congratulations to us all!
SGD…
