Nigerians Protest at Banks, ATMs Amid “Cash Scarcity” Concerns

By Staff, Agencies

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.

Protests at bank branches erupted in Ibadan and Benin City as well as several towns in Delta State, in southern Nigeria, on February 15.

In Benin City, a crowd of protesters attempted to breach the local branch of the Central Bank of Nigeria [CBN]. Local residents had gathered around the bank to wait for a chance to exchange their naira notes.

However, according to local media, they began throwing stones at the building and were met with teargas and gunshots from security forces.

Protesters, armed with sticks and weapons, also attacked other bank offices and destroyed ATMs around Benin City.

At least three people were shot dead by security forces on February 15 as protesters attempted to break into the CBN building in Benin City.

Protests also forced many bank branches in Benin City to temporarily close. Many ATMs were also out of service or destroyed.