Nigeria: Protests at banks and ATMs amid ‘cash scarcity’ concerns

Pariesa Brody
Fri, 17 February 2023 

© Twitter / @OaikhenaJo

Destroying ATMs, breaking into banks and setting up blockades in the street: angry protests erupted on February 15 in several cities across Nigeria as people struggle to get their hands on newly designed banknotes. Frustration is mounting as some citizens can’t purchase basic necessities amid widespread shortages of the new currency, just a week ahead of the 2023 general elections.

The Central Bank of Nigeria began circulating newly designed banknotes worth 1,000, 500 and 200 naira (2.03, 1.02 or 0.41 euros) on December 15, 2022. The move was intended to replace dirty, old cash currently in circulation, tackle inflation and counterfeiting, as well as promote a cashless society.

The old banknotes were set to expire on February 10, before Nigeria's President Muhammadu Buhari extended the deadline for citizens to continue using their old 200 naira banknotes until April 10. The 500 and 1,000 naira notes must be exchanged or deposited in banks.

But a lack of new notes in the banks – as well as allegations that banks are hoarding the new notes – have left people desperate, with lines forming outside banks and at ATMs.

Some merchants have already stopped accepting the old banknotes, rendering them essentially valueless. In a cash-based society where around 40% of the population do not have bank accounts, the currency redesign has caused growing anxiety among those who can’t access the new money.