Naira redesign: Banks not hoarding cash, CBN working on hiccups to eliminate challenges faced by Nigerians – ACAMB President

President of Association of Corporate Affairs Managers of Banks (ACAMB), Mr Rasheed Bolarinwa has said the Central Bank of Nigeria (CBN) is working on hiccups in the Naira redesign policy to eliminate challenges faced by Nigerians in accessing their cash in banks.

The ACAMB boss explained that accusations that Deposit Money Banks (DMBs) are hoarding money from customers is not true as banks don’t print money but only disburse whatever quota they get from the apex bank.

Bolarinwa who also doubles as the Head, Corporate Communications of Polaris Bank Ltd revealed this on Tuesday in a monitored interview on Splash FM.

“Banks don’t print money, as such banks can only disburse whatever they get from CBN. Banks can’t hoard the money. It is of no use for banks to hoard money,” Bolarinwa said.

Speaking on the current hardship Nigerians are facing with the redesigned Naira and scarcity of Naira notes, he said “There have been hiccups in the Naira redesign which the CBN have also identified and are working to make it better”.

“Nigerians should embrace the cashless policy introduced in 2012 and they should try to use other alternative channels for transactions”. When the demand is more than supply, this is what you get.

“Nigeria is among the first 10 nations in the world to have advanced financial technology. Nigerian Banks have invested an estimated total sum in excess of N100 billion in setting up and maintaining cutting-edge electronic channels over the past few years as part of ongoing commitment to seamless customer experience and real time digital financial transactions.

“The challenges of electronic banking cant outweighs the good of it. We should cut the appetite for cash because no country will grow with heavy cash economy.  There is no basis for us hiding money in casket, bush and so on. Aside from transportation and buying little things from the roadsides, the average Nigerian do not need to carry cash around.”

Bolarinwa appealed traders have a bank account to make use of it while advising those yet to one to open so as to make their experience with the new cash policy less cumbersome.

“We should continue to encourage them to make use of it on a daily basis. Embracing other alternative channels brings integrity to the system and reduces corruption.”

Asked about disturbing videos circulating on social media showing people attacking bank facilities, Bolarinwa said: “There is no need to attack the banks and bankers, they are not the enemy. It is practically impossible for banks to have new notes and not disburse. People should stop forming opinions on any video on social media”.

“There are protocols on how money is moved from the vault to the counter and to ATM. If you deposit a certain amount in old naira, it must get to CBN before the day runs out, that doesn’t mean you will get that same value with new Naira immediately. This is what Nigerians fail to understand.”