According to a commitment made by the Federal Government, as long as a bank’s properties are fully insured, the nation’s insurance firms will make up for the damages caused by customers in the recent nationwide cash crunch.
The Central Bank of Nigeria (CBN), despite a Supreme Court ruling requiring the use of the old money alongside the new currency, refused to extend its February 17, 2023 deadline for the old N200, N500, and N1,000 notes to be used as legal tender. The irate customers demonstrated against the shortage of the new N200, N500, and N1,000 notes, and several properties were damaged.
However, President Muhammadu Buhari eventually ordered the system to once again accept the old N200, which should be legal tender until April 2023.
As a result, analysts estimate that the damage will cost more than N2 Billion, of which insurers will have to pay claims.
To this end, the Federal Government expressed sympathy to banks and other businesses which properties were damaged by the protesters, through the Commissioner for Insurance/CEO of the National Insurance Commission (NAICOM), Mr. Sunday Thomas, and made a promise that the insurance industry, as a risk mitigator, will rise to the occasion by paying legitimate claims.
As the CBN and Government were working round the clock to resolve the situation, he also urged Nigerians to maintain their composure regarding the shortage of the new notes.
