Commercial banks, POS hit by new notes scarcity in Borno, Yobe
Njadvara MUSA, Maiduguri
The scarcity of new Naira notes in Borno and Yobe states hits commercial, microfinance, and point-of-sale (POS) banks.
Most of the banks and point-of-sale (POS) systems in Maiduguri and Damaturu, the state capitals, were unable to meet the needs of their many customers.
The scarcity of new notes is, however, only four days to January 31 deadline for commercial banks in the states.
In an attempt to beat the deadline, yesterday in Maiduguri, many customers were sighted at one or two Automated Teller Machines (ATMs) at Keystone, UBA, Zenith, and Union commercial banks along Shehu Lamimu Way and Baga Road.
Adamu Isa, a trader at the Maiduguri Monday Market (MMM), told The Guardian at Keystone Bank that he arrived at the market at 7:30 a.m. to beat the crowds.
However, the ATMs were not stocked with any redesigned N200, N500, or N1,000 notes issued by the Central Bank of Nigeria (CBN).
On reaching the banking hall, he said: “One Aisha of the bank politely told me that the bank has no new notes in either of its strong rooms (vaults) or the ATMs,“ adding that if the bank issues the old notes, the Central Bank of Nigeria (CBN) will sanction the bank or arrest the banker for issuing old notes to customers.
She, however, stated that the bank accepts the lodgings of old notes without reissuing the same to customers even though the deadline is only four days away.
Some of the customers, like women and people with disabilities, were upset that it took them six to ten hours to get the most they could get, which was N20,000.
Commercial banks in Maiduguri and Damaturu did not have the new bills in their ATMs, so people still had to wait in line for one or two machines that could only give out up to N20,000.
The situation at the POSs was the same as at the affected banks. A withdrawal of N10,000 cost N300, and salespeople at the Maiduguri Monday Market (MMM), the Post Office Area, and along Baga and Airport roads said they didn’t have enough new notes to sell.
While justifying the increase in sales rate by 100 per cent, Audu Buba of a POS at Gidan Madara disclosed, “We had to pay a token to some of the bank officials before we got a maximum of N500,000 in the denomination of N1,000,“ noting that this enabled them to serve their customers who have dire needs.
Meanwhile, Governor Babagana Zulum has resorted to the Borno State Microfinance Bank to provide new notes to people who do not have banking services due to the 13-year Boko Haram terrorism.
The orders were given by the Shehu of Borno, Abubakar Umar Garbai El-Kanemi, who was represented at the meeting by the Waziri, Mustapha Muktar.
“The microfinance branches in the state will be established in Monguno and Gwoza towns this week,“ he said.
He directed the Ministries of Finance and Higher Education, Science, Technology, and Innovation to establish branches of microfinance banks in 24 local councils that do not have banking services.
Besides, the commissioners of the two ministries, Adamu Lawan and Mustapha Malumbe, are also to establish information and communication technology (ICT) centers in the 27 local government areas.
He also said that Malumbe will help telecom companies improve their networks so that everyone in the state can connect to the internet.
“At the moment, we only have three council areas with banking services, including Maiduguri Metropolitan Council (MMC), Biu, and Shani councils.
He said that even though security had gotten better in the state, it was still hard for commercial banks to start up.
He was sad that none of the banks were willing to take the risk of opening branches in the 24 local councils that were affected.
Continued: “In support of our people, the state government has taken on the risks of the recapitalization of the Borno Renaissance Microfinance Bank (BRMB).“
“The Ministry of Finance will come up with a template to organize and ensure people in rural areas deposit the old notes to beat the deadline.“
He said that this would make it possible for the bank to open more branches in all council areas.
