Naira Scarcity: UK Issues Security Alert on Citizens Over Criminal Activities at Banks, Atms

Recently, the naira which is one of the tools for transactions both in small and large businesses has become scarce. This further prompted the United Kingdom Foreign, Commonwealth, and Development Office (FCDO) to release an updated version of its money advisory about the scarcity of naira in Nigeria.

This security alert has marked the country as a red flag this period and will further halt the operations of most foreigners who planned on visiting the country this time. However, this is not the first time Nigeria has been placed on security alert by the United Kingdom, so it’s not news that the FCDO issued a warning on their official website.

What Is the UK FCDO Saying About Nigeria Today?

The UK FCDO warned through their official website that there has been a "spike in criminal activities" in financial institutions like banks and automated teller machines (ATMs); also on the website, it advised British citizens living in Nigeria to exercise caution when going to financial institutions like those institutions.

According to the most recent information available, it says,  

"Nigeria is mostly a cash economy; however, the usage of credit and debit cards is expanding, particularly in the major cities."

“If you plan to pay with cash, you should bring an adequate amount of local currency to meet the expenses. It is against the law to change money in public, and it can be difficult to cash traveler's checks.”

“While using your credit card, exercise caution because identity theft using credit cards is all too common. If you intend to use your credit or debit card in Nigeria before you travel, you should get guidance from the company that issued your card before you leave.”

"The Central Bank of Nigeria (CBN) has ordered new naira notes to be redesigned and printed in denominations of 200, 500, and 1,000 naira. Because of this, there are currently cash shortages, which are likely to continue for some time.”

"You are strongly recommended to check that the banknotes issued by currency exchange merchants will be valid for the duration of your trip to Nigeria, and to ensure that you adhere to the criteria established by the CBN.”

"Areas such as banks and ATMs have seen an increase in criminal activity. As a result, it is urged that you take additional measures, particularly while withdrawing cash in busy locations, and particularly when doing so during the nighttime hours.”

“As a direct result of cash shortages, there have been incidents of violence in the South West region of Nigeria, and there is a possibility that these incidents would spread to other urban areas across the country.”

As a result of the current crises in Nigeria, the government of the United Kingdom issued a supplementary warning to tourists traveling in Nigeria, advising them to "use their judgment" and "be aware of any huge crowds or potential disturbances."

The advice was issued at a time when people in some states were demonstrating and vandalizing financial facilities because of a lack of new naira notes.

What Is President Muhammadu Buhari Doing to Solve the Naira Scarcity?

President Muhammadu Buhari stated earlier on 16th of February 2023 in a broadcast that was aired nationally that the previous N500 and N1,000 notes are no longer considered valid forms of payment. He also said steps that the CBN is taking to make the Naira available to everyone and ease the tension the country is facing. 

On the other hand, he stated that the previous N200 note will continue to be accepted as payment until April 10, after which it will no longer be valid.

Buhari issued the directives despite a ruling made in a case that was filed by some states challenging the policy of redesigning the naira. In that case, the supreme court restrained the federal government from restricting the use of the old naira notes pending the determination of the suit that was filed by the states. Buhari disregarded that ruling and issued the directives anyway.