Nigeria’s Atiku joins calls to extend deadline on old banknotes By Reuters

LAGOS (Reuters) – Nigerian opposition presidential candidate Atiku Abubakar urged the central financial institution on Saturday to increase a Jan. 31 deadline to part out outdated high-value banknotes, a measure many Nigerians worry will disrupt enterprise within the cash-reliant financial system.

Nigerians have to show in 1,000 ($2.17), 500 and 200 naira notes by Tuesday once they stop to be authorized tender. The central financial institution began releasing newly designed notes final month however many Nigerians say they don’t seem to be but out there in banks.

The Central Financial institution of Nigeria (CBN) says recalling the notes is a part of plans to scale back the usage of money. About 1.3 trillion naira in outdated notes has been deposited into the financial institution for the reason that announcement in October, the financial institution stated this week.

Nonetheless, in Africa’s largest financial system Nigeria, most individuals stay in rural areas and the largest employer is the casual sector the place money is used for many transactions.

Atiku, the principle opposition Folks’s Democratic Get together’s candidate in subsequent month’s presidential election, stated it will be unimaginable for many of Nigeria’s unbanked inhabitants to show of their outdated notes in time.

“I am conscious of the challenges that farmers and others like artisans in distant areas of the nation undergo in transferring money to business banks for the conversion,” Atiku stated in a video.

“It is vital for the CBN to contemplate an extension of the time that the general public convert their financial institution monies into new notes, thereby decreasing the monetary penalties for residents.”

Nigerian legislators have additionally requested the central financial institution to increase the Tuesday deadline.

In Lagos, some retailers had been rejecting outdated banknotes on the weekend in anticipation of the deadline.

($1 = 459.7800 naira)