19 Feb 2023 | 12:36 PM UTC
Nigeria: Protests over new naira notes may escalate as of Feb. 19 /update 4
Protests in Nigeria over new naira notes may escalate as of Feb. 19 after banking union issues directive Feb. 18. Violence possible.
Event
As of Feb. 19 protests over the newly introduced naira note shortages may escalate nationwide. On Feb. 18, the Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) directed that its bank workers stay home from work indefinitely from Feb. 20 in those states where bank workers have been threatened or banks attacked by protesters. If the directive is widely adhered to, the ability of residents to access funds will be further negatively impacted, increasing the threat of protests and associated violence.
Disruptive protests have been reported in recent days, including in Abuja, Lagos, Port Harcourt, and the states of Kano, Oyo, Edo, Ondo, and Kwara among other affected locations. Participants have obstructed road traffic, including highways, and targeted ATMs and banks, as well as throwing rocks at commuters in some instances. Reports indicate that approximately five people died in the related unrest Feb. 15, including three in Benin, Edo State, and two in the Udu area of Delta State.
Likely gathering locations include highways, banks, and Central Bank of Nigeria (CBN) offices nationwide. Heightened security and localized disruptions are likely near all protests. The potential for clashes with security or angry commuters is elevated, notably if protesters obstruct road traffic and security forces attempt to disperse. Higher demand for cash and related long queues are possible. Increased demand at available fuel stations remains possible and may prompt congestion on nearby roads.
Context
The CBN introduced a new series of N200, N500, and N1000 banknotes on Dec. 15 and initially announced that existing currencies were no longer be considered legal tenders from Jan. 31. Due to several issues and popular discontent over the measure, the CBN extended the deadline to Feb. 10. President Muhammadu Buhari on Feb. 16 gave approval to the CBN to extend the deadline to turn in old banknotes until April 10. The measure is part of a global so-called cashless strategy to limit the use of cash and encourage the use of digital currencies.
The naira note shortage is triggering mass discontent amid an already challenging security environment and a tense sociopolitical context ahead of the Feb. 25 presidential election. Should the issue remain unresolved in the coming days and possibly on polling day, the popular discount will certainly grow and may further disrupt daily activities.
Advice
Avoid all protests. Confirm all ground transport services before travel. Make allowances for possible business disruptions and queues at banks. Heed all advice of security personnel.
