Nigerians around the country are living in anxious times about their money, both cash and savings in banks, as the Central Bank Governor, Godwin Emefiele, insists on the January 31st deadline for the use of old currency notes being sacrosanct.
"As things stand, the N200 denomination is scarce. We rely a lot on N200 notes, but we don’t have it. I still have lots of N200 in my box," Dolapo Michael, a trader in Yaba area in Lagos State.
Mrs Michael's situation is not unique, as many Nigerians are concerned about the CBN's recent stance. While the central bank stated that the strategy is aimed at bringing liquidity into the banking system, it has turned into a political problem.
At the All Progressives Congress (APC) presidential campaign event in Abeokuta, the Ogun State capital, Bola Tinubu, the party's presidential candidate, said that the policy was aimed at him.
The two houses of the National Assembly also requested the CBN to extend the time by six months as soon as possible; however, the CBN chairman emphasised that there would be no extension.
Even the prospect of an arrest warrant did not deter the CBN chief, who declined the House's invitation on two occasions.
The legislators contend that Section 20 of the CBN Act requires commercial banks to accept outdated currencies even after the deadline has passed.
"The House is also aware that Section 20 (3) Central Bank of Nigeria (CBN) Act mandates the CBN to redeem the face value of the recalled currency upon demand, even after the expiration of the notice of recall. Notwithstanding the deadline imposed by the Central Bank of Nigeria(CBN), this House will see to it that this provision of the law is honoured in full," Femi Gbajabiamila, the Speaker of the House said on Thursday.
Banks, on the other hand, have said that they will follow the CBN's order on the topic.
First Bank said on Friday that it will no longer accept old notes after February 1st, advising clients to use the weekend to deposit their old cash.
"This is to notify the general public that all our branches will be open on Saturday and Sunday just to receive cash.
"All old Naira notes of series 200, 500, and 1000 will cease to be in use from the 31st of January," he said.
During a meeting between banks and a House committee on Thursday, bankers admitted that the new notes are insufficient to meet Nigerians' demand.
Orlando Umoren, a representative of Sterling Bank, informed MPs that the CBN rationed money to several banks, but it was insufficient to suit their demands.
He claimed that Sterling Bank receives N150 million weekly for its Kaduna branches, while N100 million is split among all of its Kano city locations.
In addition, Access Bank official Hadiza Ambuza stated that the bank can only release 10% of the entire money collected from consumers.
"We are paying as much as we get. We are collecting the money and loading it at the ATM as quickly as we get it. Unfortunately, we are not getting them quickly. We have gotten about 10 percent of the total money. That is a challenge that we have. We are doing the best we can up until the deadline," she said.
Despite the limited circulation, banks are adhering to the CBN's deadline requirement.
The House of Representatives has stated that it would defer its planned break to handle the problem, and that it is prepared to issue an arrest warrant for Emefiele and meet with President Muhammadu Buhari.
Hakeem Liadi, a resident of Isanlu in Kogi State, said that due to armed robbery operations along the Kabba-Ilorin route, most banks are closed and residents rely on POS.
"In some instances, POS operators now charge as much as N100 on every N1,000 for Nigerians to get new notes," Leadi said, adding that "We use POS for our transactions, it is like our own bank. With the rush, POS are also struggling to get the new notes. So, when they charge extra, we cannot complain."
According to Lekan Olaleye, an economist , while the policy was developed with good intentions, its execution might have a big influence on the economy.
"The CBN must understand that Nigeria is far from a cashless economy. Perhaps, they are overestimating data from POS terminals. As it stands, POS in Nigeria are for the withdrawal of money not for payment for goods. This economy still relies heavily on cash.
"By Monday, most commercial drivers may not want to accept the old note in fear of the deadline, but from findings, the new money is not circulating well enough. The CBN should have used the POS agents to speed up the circulation," he noted.
When questioned about the CBN's intention to reduce abduction and vote buying by politicians, Mr Olaleye said the mischief the bank aims to curb may create a greater issue.
"Poison is not the cure for cancer. Can the banks cope with the demand for money on February 1st? Apart from that, a large percentage of daily transactions still involves cash," he said.