Yesterday, Mr. Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), informed the Diplomatic Corps that it was unnecessary to extend the February 10 deadline for the distribution of the redesigned N200, N500, and N1,000 notes.
He spoke at the meeting about the new Naira policy that was held at the Ministry of Foreign Affairs’ Abuja headquarters.
Emefiele spoke on the same day that the governors of Kano and Ogun states, respectively, Abdullahi Ganduje and Dapo Abiodun, threatened to close banks in their states if they continued to reject the old naira notes.
Related News Falana slams the Central Bank of Nigeria (CBN) for disregarding the Supreme Court’s order regarding the new Naira Cashless Policy and the cashless banks in Nigeria Cash squeeze as old notes are rejected more widely The CBN governor acknowledged the difficulties posed by the policy, but he assured that they would pass quickly as his team was diligently working to address the issues it raised, including the availability of the new notes.
He said that some dishonest bankers and members of society were trying to sabotage the policy, which was why there were so few of the new notes. He also said that these people would be punished along with POS operators who would charge customers a lot of money.
The governor of the CBN said: These activities involve PoS agents who are supposed to assist.
“We have made it clear that whatever their fee is, which is not meant to be more than N200 for any amount you exchange that we, CBN, will pay as part of our effort to lessen the burden of this problem,” states our monitoring team. “We have EFCC, ICPC working with our team to arrest any PoS agent that charges any fee.”
Customers can expect to pay anywhere from 20% to 30% of the total amount they withdraw in new notes from some POS operators.
While he acknowledged that prominent public figures are attempting to exaggerate the policy’s drawbacks, he stated that there is no reason to cause excessive panic in society.
The CBN boss asserts that the “tension and elevated agitation are by our leaders, who should be calming the citizens’ frayed nerves.”
“We believe that the majority of these uprisings are staged, sponsored propaganda, or exaggerations of the truth.”
The Federal Government has stated that it will make a decision regarding the legality of the old N200, N500, and N1000 currency notes following the outcome of the suit brought by some state governments at the nation’s highest court.
Kogi, Kaduna, and Zamfara were three states that had taken the Federal Government to the Supreme Court to ask for an extension of the CBN’s February 10 deadline.
The suit was scheduled to be decided on February 15 by the court today.
Some Nigerians have said that the Federal Government and the CBN are in contempt of court and that they don’t care about the problems that many Nigerians are having because they don’t have enough money.
However, the Federal Government stated last night that the decision will not be made until the Supreme Court’s decision on the lawsuit.
Mallam Garba Shehu, Senior Special Assistant to the President for Media and Publicity, stated: We would like to make it clear that it is not true that the Federal Government or the Central Bank of Nigeria, also known as the CBN, have taken any preemptive action regarding the legality of currency as a form of legal tender because the Supreme Court case is still pending.
Garba Shehu stated, “Upon the determination of the suit coming up tomorrow, the position of the government and the CBN will be made known.”
Naira note panic mops up in the ATM lines, he said, Notes have also been covered up in a panic. The CBN has also observed that some of our leaders are purchasing and storing the notes for a variety of reasons.
We have also noticed that some Nigerians are taking advantage of the transition period to charge astronomical fees. Nigerians face hardship as a result of these self-centered actions for financial gain, putting lives and livelihoods at risk.
Since the introduction of Over-The-Counter (OTC) payment to complement ATM disbursement and the use of super agents, the situation has significantly improved. Therefore, there is no need to consider changing the February 10 deadline.
“In some areas, there are pockets of pressure. The CBN has also observed long lines at some banking halls and ATMs. While some of these requests for withdrawals are legitimate, others are simply criminals trying to make quick money so they can line up and sell their space for money. However, the Central Bank of Nigeria (CBN) is working hard to shift resources to those areas to ease tension.
“We will continue to issue and distribute new notes, but once we reach our optimal level or slightly above it, we will seek to implement a policy requiring people to return their money.”
Benefits of the policy so far The head of the apex bank reiterated the advantages of the naira redesign, arguing that it had helped to moderate exchange rates and reduce inflation.
Emefiele urged Nigerians and the Diplomatic Corps to support the policy, which he said has become necessary for the monetary authority’s efforts to reduce the country’s high inflation.
Additionally, he stated that the policy is already having a positive impact on the economy, with inflation already trending downward, and emphasized that it will significantly address issues in the foreign exchange market.
He stated, “The policy will accelerate the cashless policy of the monetary authority, which has been in the works for many years, spanning different administrations.” He also noted that election spending, the effects of the global market environment, and insecurity, which had made it difficult for crop farmers to maximize their potential, are all contributing significantly to the current inflation rate.
The old N200, N500, and N1,000 notes are no longer accepted by banks and business owners in Abuja, according to reports from yesterday.
It was instructed to the individuals who attempted to deposit old notes in their banks to take such notes directly to the CBN.
The old notes were also no longer accepted by business owners and gas stations. However, Emefiele pointed out that the nation’s economy is anticipated to expand by 3.6% in 2023 and that the monetary and fiscal authorities will work together to achieve the nation’s best outcomes.
472 CSOs praise Emefiele for remaining firm In the meantime, a total of 472 civil society organizations (CSOs) in the country have commended Emefiele for remaining firm on the new naira policy deadline and urged him not to shirk his responsibility of establishing a sound economic policy for the nation.
At a briefing yesterday in Abuja, the groups under the Civil Society Central Coordinating Council claimed that Nigerians had begun to notice the benefits of the Federal Government’s new naira policy.
The group had given the new naira policy, President Muhammadu Buhari, and the CBN governor a vote of confidence last week.
Obed Okwukwe, the group’s national coordinator, read the prepared text and said that sabotage is connected to the problems small businesses face due to cash shortages.
G-10 Governors remove new notes Noting that money moves in cycles, he claimed that state governors are removing new notes from circulation, which is why Nigerians are experiencing a cash shortage.
He stated, ” Nigerians and the system as a whole have begun to reap the benefits of the new Naira policy. Other important indicators indicate that the policy is having a very positive effect on our economy, with the exception of the issues with the lack of cash, particularly for small businesses, which are the result of sabotage from those who do not want the policy and want to continue their illegal trade.
“Also in terms of security, kidnappers now know that there is no money to pay a ransom. This is having an effect. It is now abundantly clear to Nigerians that the only people who are upset about our election process are those who purchased votes.
The G-10 Governors are a group of governors who are waging a coordinated attack on this policy.
These governors have pledged that this policy will not be implemented. For their own purposes, they are willing to go to any length, including making our nation unruly, undermining constitutional governance, and halting the entire country.
The prepared text included the following: As the first installment of cash, the Central Bank of Nigeria (CBN) had announced that it would deploy N300 billion. We can all agree that the money was stolen and did not reach the people, and that those who took it from the commercial banks did not release it into the world.
“They are withholding the money using a variety of methods, such as deploying agents who use multiple ATM cards to withdraw the money, conspiring with their bank agents to keep the money in the banks, and buying cash from business locations, such as gas stations, supermarkets, and department stores, that typically make large cash transactions.
Because of this, some of these businesses now require only cash payments because the profit they make from selling Naira makes up for the loss of business caused by customers who are unable to pay in cash.
“We have discovered a large-scale plot by ten governors who have resolved to render Nigeria unruly for President Muhammadu Buhari if he does not change the new Naira policy.
“It is amazing to note that the governors responsible for this plot were the same governors who, a few years ago, took advantage of every opportunity to extol President Buhari to the utmost.
“However, it is evident that these governors now believe that the President is not deserving of their respect because the second tenure is coming to an end. That is incredibly dishonest. As a result, we must remind them that President Buhari will continue to serve as President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria until May 29, 2023, not one day earlier. This indicates that all they were demonstrating for the President was sycophantic solidarity.
“Unfortunately, despite the fact that the new godfather has not yet won the presidency, these governors have switched allegiances to him. In order to acquit themselves of their narrow political ambitions and enthrone him, they are willing to risk constitutional governance and undertake anything, including the instigation of chaos. As you are all aware, Governor Nasir El-Rufai of Kaduna State has stated that they will end the new Naira policy once their candidate wins.
Our intelligence indicates that the cash-scarcity drama will get worse across the geopolitical zones. People will go naked and pretend to collapse. In an effort to emphasize their demands, there will be numerous prearranged fights and other events.
“More than a few people have been mobilized to bring this about. Additionally, groups have been mobilized to regularly report at various bank ATM locations in order to continuously stand around and contribute to the perception that the banks are not receiving attention from crowds of customers.
“Scenarios will be created, and it is anticipated that this will increase the system’s workload and result in the policy’s abandonment or reversal.
“It must be noted that this policy has succeeded in reducing these governors’ capacities for financial recklessness, money laundering, and vote buying,” which is why they are fighting the policy with such ferocity.
“If, as they claim, their concern is the plight of the poor in their states, one might now ask: Why aren’t they thinking of ways to make the policy work? Why are they only concerned with preventing the policy from being implemented or abandoned?
Nigerians are happy that this policy has hit them hard and reduced their excesses, in case they are unaware. Nigerians support this policy wholeheartedly, and for the time being, governors can whine all they want because the policy is still in effect and the old naira notes are gone forever.
“Nigerians have discerned through all of these their plot to incite businesses to shut down and go on strike, claiming cash shortage, will fail. It is a false narrative that the cash shortage was orchestrated to portray their candidate negatively; The inability to compel abandonment is the result of these ten governors.”