The Central Bank of Nigeria had debunked media reports that the Nigeria Security Printing and Minting Company lacks the capacity to print new naira notes.
The bank in a statement signed on Saturday, February 11, 2023 by its Director of Communications, Osita Nwanisiobi stated that the CBN governor, Godwin Emefiele was misquoted in the said reports.
The bank also denied reports that it wants to close some deposit money banks in Nigeria over their inability to dispense new naira notes amid a cash crunch in the country.
The statement said: โThe attention of the Central Bank of Nigeria (CBN) has been drawn to a misleading report misquoting the Governor, Mr. Godwin Emefiele, as attributing the current challenge in the distribution of the newly redesigned naira banknotes to a shortage of printing materials at the Nigerian Security Printing and Minting Company Plc.
โWe wish to state categorically that at no time did the CBN Governor disclose this during his presentation to the National Council of State at its meeting on Friday, February 10, 2023.
โFor the records, what Mr. Emefiele told the meeting was that the NSPMC was working on printing all denominations of the Naira to meet the transaction needs of Nigerians.
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โFor the avoidance of doubt, the CBN remains committed to performing its monetary policy functions, as stipulated in the CBN Act, 2007, as amended. We also wish to restate that the NSPMC has the capacity and enough materials to produce the required indent of the Naira.
โThe Bank, therefore, wishes to appeal to the public to disregard the said report and exercise more restraint, even as we work assiduously to increase the circulation of the new notes in the country.
โSimilarly, there is a misleading voice note trending on social media alleging that the CBN planned to shut down some banks, particularly in a particular geopolitical region.โ
The Central Bank of Nigeria (CBN) said on Saturday the redesign of the naira notes was initiated to make Nigeriaโs monetary policy decisions more effective, and promote financial inclusion.
The CBNโs Director of Communication, Osita Nwasinobi, who disclosed this at the 44th Kaduna international trade fair in Kaduna, said the policy would complement the efforts of security agents in their fights against bandits and other criminal elements in the northern part of the country.
Nwasinobi, who was represented at the fair by CBNโs Director of Capacity Development, Mohammed Abbah, advised Nigerians to make use of alternative payment channels such as eNaira and internet banking for their daily transactions.
He stressed that the policy was never intended to plunge Nigerians into hardship or targeted anyone.
The scarcity of the redesigned Naira notes had crippled activities in the country with Nigerians daily keeping vigil at Automated Teller Machines (ATMs) posts to cash money for their daily usage.
Abbah said: โThe principal aim of the bank, with the currency redesign initiative, is to make our monetary policy decisions more efficacious.
โThirdly, our aim is to support the efforts of our security agencies in combating banditry and ransom-taking in Nigeria through this programme.
โThe CBN is not unmindful of the challenges some citizens have had to face in the past few weeks in efforts to get money from their banks or other alternative channels.
โIndeed, there have been reports of occasional transaction failures. However, we wish to assure you that the Nigerian payment system infrastructure is robust enough to handle the surging transaction volumes across all channels.โ
Niger State government has filed a lawsuit against the Federal Government of Nigeria over the naira redesign policy of the Central Bank of Nigeria (CBN) at the Supreme Court.
A statement by Justice Nasara Danmallam, the Attorney General and Commissioner for Justice, in Minna on Saturday, said the case was filed with suit number SC/CV/210/2023.
This development joined the series of suits filed by five other state governmentsโ Kaduna, Kogi, Zamfara, Ondo, Kano, controlled by the All Progressives Congress (APC), against the Nigerian government following the announcement of the naira redesign policy by the Central Bank of Nigeria (CBN).
Danmallam in the statement said the Niger State government was seeking for an extension of the timeframe given by the CBN for the currency swap and withdrawal from circulation of old N200, N500 and N1,000 amongst other reliefs.
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The statement branded the timeframe as unreasonable and argued it was in violation of section 13, 14 (2) (b), 17 (1) (c) of the 1999 Constitution as amended.
In the affidavit in support of the originating summons filed at the Supreme Court, the Niger government maintained that the unavailability of the new redesigned notes had caused untold hardships and sufferings on the inhabitants of the state, especially those living in rural areas across the state.
The statement lamented the inconveniences occasioned by the redesigned Naira policy, saying that the government would continue everything within its constitutional limit to cushion their sufferings
This was disclosed in a statement signed on Friday by CBNโs Director of Corporate Communications, Mr Osita Nwanisobi.
CBN said NSPM is not experiencing insufficient printing materials, as alleged by a report making the rounds in the media.
It clarified that the CBN governor, Godwin Emefiele, told the National Council of State in a meeting in the presidential villa on Friday that NSPM was working assiduously on printing all denominations of the banknotes to ease the sufferings of Nigerians.
Also, the apex bank frowns at vested interests attempting to pitch the public against the Bank.
It assured the public that the Bank would continue to execute its constitutional mandate by ensuring the smooth nationwide circulation of the currency.
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โFor the records, what Mr Emefiele told the meeting was that the NSPMC was working on printing all denominations of the Naira to meet the transaction needs of Nigerians.
โWhile the CBN appreciates the concerns shown by all stakeholders about the distribution of the Naira, we are alarmed at the extent to which vested interests are attempting to manipulate facts and pitch the public against the Bankโ.
โWe wish to state unequivocally that there is no such plan and that the claims are illogical and do not comply with the workings of the Nigerian banking system. The public is therefore advised to ignore such recordings as they do not represent the policy thrust of the CBN and are only the desperate attempts of persons bent on inciting the public against the bankโ.
The Central Bank of Nigeria may bow to mounting pressure and contract the printing of the redesigned N1,000, N500 and N200 notes to foreign contractors in the coming days in order to boost the circulation of the currency.
Saturday PUNCH gathered that this had become imperative as sources said the Nigerian Security Printing and Minting Plc, which had been responsible for the printing of the naira, appeared to lack the capacity to meet the demand for the new notes.
This is as the National Council of State advised the apex bank to print more naira notes or re-circulate the old notes, which it had mopped up from circulation, in order to ease the pressure on hapless Nigerians, who had been suffering from the scarcity of the new notes.
A top banker told one of our correspondents on Friday that information available to him indicated that the Mint had succeeded in printing N500bn worth of the new N1,000, N500 and N200 notes and might not have the capacity to do more than that at the moment.
The top banker, who spoke on condition of anonymity because of the sensitive nature of the subject and because he had not been authorised to speak officially on it, said, โIt is obvious that what has been printed is not enough. How can you withdraw about N2.1tn from circulation and only print N500bn to replace that?
โIs it not obvious that the NSPMC does not have the capacity to print more than N500bn? With the Mintโs current capacity, to print N2tn will take about a year. Even the N500bn printed has been hijacked by politicians, especially governors. You heard one governor saying one of his colleagues was able to withdraw N500m.
โWhat the CBN is doing is to give us only 10 per cent of the worth of the old notes we deposit with it. For instance, if a bank takes N1bn to the CBN branch office in its area of operation, it will be given N100m new notes to distribute to its branches nationwide and load onto its ATMs.โ
A former top official of the CBN, who spoke to Saturday PUNCH anonymously, echoed a similar sentiment that the Mint might not have the capacity to print more naira notes and that could be responsible for the scarcity of the notes.
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The ex-CBN official said, โI think it is a matter of capacity on the part of the Mint. The NSPMC has been solely responsible for the printing of the local currency and its role wasnโt an issue before now because it periodically printed notes, which the CBN released into the system along with those already in circulation. Only mutilated notes were withdrawn by the apex bank and destroyed.
โAs it is now, the CBN may have little or no choice but to contract the printing of the new N1,000, N500 and N200 notes to foreign contractors in order to make the new notes go round the country quickly and save the nation the embarrassment caused by the current scarcity and its attendant consequences.โ
Efforts to get a response from the CBN through its Director of Corporate Communications, Osita Nwanisobi, were futile as calls made to his mobile telephone did not connect, while he had yet to respond to WhatsApp messages sent to him.
However, an official of the CBN, who pleaded that his identity should be concealed, said there was no problem with the supply of the new notes by the NSPMC, adding that it was a deliberate policy to print limited amounts in order to encourage Nigerians to embrace other means of transaction other than cash.
โWe donโt have an issue with what the Mint is doing regarding the printing of the new naira notes. There is no problem with the mintโs capacity. The fund it has expended so far on the printing of the new N1,000, N500 and N200 notes is its budget for the fourth quarter of last year.โ
When a telephone number listed on the website of the NSPMC was called on Friday, it rang out. A message sent to the same number had not been replied as of the time of filing this report.
The NSPMC stated on its website, โThe MINT has been in charge of the production of local currency notes since they were introduced in 1965. It does this on behalf of the Central Bank of Nigeria.
โFor decades, the MINT has produced Nigeriaโs naira notes. The notes are among the most secure in the world, with features that are almost impossible to replicate outside of our production systems.โ
The CBN had stated in December that it spent over N800bn between 2017 and 2021 to maintain the naira. The apex bankโs Deputy Governor, Financial System Stability, Aisha Ahmad, who appeared before the House of Representatives, added that the amount had spiked by N10bn annually and attributed over 90 per cent of the currency management cost to the production of naira notes.
Council advises Buhari Meanwhile, the National Council of State on Friday in Abuja advised the President, Major General Muhammadu Buhari (retd.), and the Governor of the CBN, Godwin Emefiele, to either intensify the printing of new naira notes or re-circulate the old ones to ease the hardship being faced by Nigerians.
The countryโs highest advisory organ also insisted that the general elections should hold as scheduled based on the readiness of the Independent National Electoral Commission and the Nigeria Police Force.
The Governor of Taraba State, Darius Ishaku, revealed this to State House correspondents at the end of the four-hour hybrid meeting of the council held at the Aso Rock Villa, Abuja.
Ishaku said, โWhat took more time was the monetary issue because of the hardship caused by money in circulation across all the whole states. In the beginning, people resisted it, even though it was good, but generally, itโs accepted.
โThe primary complaint from all the states or most of the speakers is that of implementation. And so many views were proferred, particularly the CBN governor; he looked into making sure that the new money was available in quantum.
โThere were suggestions to the effect that if the new money is not in circulation or printing is difficult, then the old money that hasnโt been changed could be re-circulated and pumped into circulation to ease the tension, particularly for the poor people in our society, who just need a little sum of money to buy their food, drugs and daily needs.โ
On his part, the Minister of Justice and Attorney-General of the Federation, Abubakar Malami, said having been briefed by the Chairman of the Independent National Electoral Commission, the Inspector-General of Police and the Governor of the Central Bank of Nigeria, the council agreed that the February 25 and March 11 elections should hold as scheduled.
The AGF stated, โThe two significant resolutions that were driven, arriving from the deliberations of the council, are one, that we are on course as far as elections are concerned and we are happy with the level of preparation by INEC and other institutions.
โTwo, relating to the naira redesigned policy, the policy stands, but then the council agreed that there is a need for aggressive action on the part of the central bank as it relates to the implementation of the policy by way of ensuring adequate provision being made with regard to the supply of the naira in the system.โ
He also argued that although the implementation of the February 10 deadline for the naira swap was currently in court, it did not stop the government from taking steps when necessary.
Malami said, โThe matter with particular regard to the redesign of the currency is a judicial matter, having been taken to the Supreme Court by some of the governors. That matter is being considered for determination by the Supreme Court.
โBut notwithstanding the fact that the matter is in court, it is not out of place for the parties, particularly the parties of interest, to consider and do the needful if the need arises, which may eventually translate into either the discontinuance, or the action, or perhaps filing of the terms of settlement or reconsideration.โ
He added that after the CBN governorโs presentation, council members proffered solutions, which at the time of the briefing, were being โconsidered by the President with a comprehensive look of the judicial issues.โ
When asked by our correspondent about the Presidentโs response to the councilโs suggestions, the Lagos State Governor, Babajide Sanwo-Olu, said it would be up to Buhari to decide soon.
Sanwo-Olu said, โLike it has been said, they were all advisory and notes were taken. And he (Buhari) retired back to his office. And I think with all the advice given; the executive knows what to do.
โI think as we move on, Mr President will make known his thoughts to the nation.โ
The Senate President, Ahmed Lawan, who spoke with journalists shortly after the meeting, insisted that there was no need to rush in implementing the new naira policy.
He said other economies globally had transitioned into new notes within a year.
Lawan stated, โFor us in the Senate, we initially felt that this policy was not a bad one.
โBut we also feel that there is no need for the time limit. Allow the old and the new notes to co-exist until the old is phased out. What is wrong with that?
โOther countries have been doing the same thing. When Britain redesigned its currency, it took over a year to change and the validity of the old as a legal tender remained, so why ours? We are not cashless yet. That society is cashless already and they needed even more time.โ
The meeting was the first this year and the last before the general elections.
Present at the meeting were former Heads of State, Generals Yakubu Gowon and Abdulsalami Abubakar; and former President Goodluck Jonathan.
Former President Olusegun Obasanjo joined the meeting virtually as only about 14 governors were present physically and virtually with some represented by their deputies.
Also present were Vice-President Yemi Osinbajo and two former Chief Justices of Nigeria, among others.
The Council of State is an organ of the Federal Government, which advises the executive on key policies.
Related News Cash shortage exposes e-payment channelsโ weakness, says ICAN Corrupt politicians angry with new naira policy โ Secondus Naira, fuel scarcity: PoS operators, petrol attendants feast on citizensโ miseries It comprises the President as the chairman, the Vice President as deputy chairman, all living former Presidents and Heads of State, President of the Senate, Speaker of the House of Representatives, all the 36 state governors and the AGF.
Cash scarcity persists In Abuja, all the banks along Airport Road did not dispense cash to customers on Friday through their Automated Teller Machines.
The banking halls were also filled to the brim with customers in queues to withdraw N5,000, which was the highest amount that the banks could pay over the counter.
At Stanbic IBTC, only in-house customers were granted access to the banking hall as the bankโs ATM was closed.
At Zenith Bank, security officials were made to perform the jobs of bankers, as they gave relevant forms at the gate to customers in order to reduce the pressure on the overcrowded halls.
When queried on the maximum withdrawal limit, officials of the banks said N5,000 was being paid in N50 bill.
On the old notes, an official who preferred anonymity, said banks were no longer disbursing them.
He added that the grace period of seven days was still in place for anyone who had not returned them to the bank, even though there were no new notes to swap.
One of our correspondents, who visited some banking halls and ATM galleries in the Lugbe area of Abuja, observed that the banks were not dispensing cash to customers over the counter.
The financial institutions claimed that they did not have cash to dispense to the multitude that besieged their outlets.
At the UBA banking hall, customers were seen depositing old notes. The banking halls and ATMs of Polaris Bank, Fidelity Bank and Wema Bank were not dispensing cash to customers over the counter.
Their ATM galleries were clustered by customers waiting to withdraw the new naira notes.
Bank branches monitored in the Ikeja area of Lagos recorded heavy turnout of desperate customers, who besieged the ATM galleries and banking halls.
Rowdy scenes were witnessed at UBA, First Bank, Union Bank and Zenith Bank on Oba Akran Road, Ikeja, and Ogba areas.
At the UBA branch in Ibafo, Ogun State, customers expressed relief that the lender had reopened after some days of closure following attacks on some bank branches in the state. They, however, lamented their inability to withdraw money without stress as the queue of ATM users spilled outside the gallery.
A bank manager on Victoria Island, Lagos, told Saturday PUNCH that the bullion van team had been in the CBN office in Marina since the early hours of the day and had not been given new notes, adding that there was no improvement in money supplied to the branch.
The manager said, โThere is so much uncertainty. We have not heard from the CBN regarding the deadline for the old notes, which expires today (Friday). The Supreme Court order has complicated matters. Surprisingly, depositors, whom we had been appealing to before now, have been trooping to the banking hall to deposit their old notes.
โSince our branch is not in a residential area, the head office directed that some of the cash meant for us should be taken to our branches on the mainland and Ajah in order to reduce the pressure on those branches and prevent attacks by angry customers.โ
Kano sues FG Meanwhile, the Kano State Government has filed a suit against the Federal Government at the Supreme Court in respect of the naira redesign policy of the CBN.
In suit number: SC/CS/200/2023, the Attorney-General of the state, through his counsel, Sunusi Musa (SAN), asked the apex court to declare that the President could not unilaterally direct the CBN to recall the N200, N500 and N500 old bank notes without recourse to the Federal Executive Council and the National Economic Council.
The state prays for a mandatory order seeking the reversal of the policy for affecting the economic well-being of over 20 million Kano residents.
The applicant is also seeking a mandatory order compelling the Federal Government to reverse the naira redesign policy for allegedly failing to comply with the 1999 constitution as amended.
Ondo joins suit Similarly, the Ondo State Government has filed a suit against the Federal Government at the Supreme Court over the policy.
It filed a separate application to join the suit earlier instituted by the Zamfara, Kaduna and Kogi state governments at the apex court on the deadline issued by CBN on the swapping of old naira notes for the new notes.
The Ondo State Government asked the apex court to stop the implementation of the policy.
In an originating summon filed and signed by the Commissioner for Justice and Attorney-General of the state, Mr Charles Titiloye, the government asked the Supreme Court to stop the implementation of the directive issued by the Federal Government through the CBN on limitation of daily cash withdrawal from banks, which it said had totally paralysed its activities and adversely affected economic and commercial activities in the state.
A statement issued by the Special Assistant to the Attorney-General, Kola Adeniyi, said, โThe Ondo State Government contended that the guideline on daily maximum cash withdrawal made by the Federal Government is an infraction on the legal rights of the Ondo State Government and its citizens to access funds for the execution of developmental projects, small credit facilities to petty traders (who have no accounts in banks) and highly detrimental to daily commercial activities in the state.
โThe Ondo State Government urged the Supreme Court to declare that the Federal Government cannot by directive issued through the Central Bank of Nigeria amend or vary an existing Act of the National Assembly, particularly Section 2 of the Money Laundering Act, which relates specifically to limitations on cash withdrawals for individual and corporate organisation to N5m and N10m, respectively. The updated guidelines issued by the CBN now place maximum withdrawals for individual and corporate organisations at N500,000 and N5m, respectively.
โThe Ondo State Government is asking the Supreme Court to decide whether the guidelines issued by the Federal Government on the maximum daily cash withdrawal and the continuous suffering and hardship caused by the implementation of the said policy is not in conflict with the express provision of Section 2 of the Money Laundering Act, and sections 20, 39 and 42 of the Central Bank of Nigeria Act.
โThe Ondo State Government averred that while it has more than 149 ministries, departments and agencies to run on a daily basis in a state with more than three million people, less than 500,000 people have bank accounts through which bank transfers can be made. Consequently, the policy of the Federal Government has totally paralysed the economy of the state.
โThe Ondo State Government averred that the citizens of Ondo State now spend precious hours at bank ATMs waiting to collect the new naira notes, while citizens in the rural areas and villages without banks and Internet facilities had been shut out from receiving or transferring money to meet their daily economic needs.โ
The government urged the apex court to intervene and stop further implementation of the policy.
Policy ill-timed โ Ganduje Meanwhile, Governor Abdullahi Ganduje of Kano State, on Thursday, met with bank managers, representatives of the CBN, security agencies and other stakeholders at an interactive session.
This was contained in a statement by the Chief Press Secretary to the Governor, Abba Anwar, on Friday.
The meeting, according to Anwar, took place at Africa House, Government House, Kano.
โThe policy is a good one, but the implementation is poorly executed and ill-timed. The poor implementation is either a display of incapacity and/or as a sign of sabotage,โ Anwar quoted Ganduje as saying.
The governor said the implementation of the policy was not aimed at economic development, but for destroying democracy and causing confusion.
Ganduje was quoted as saying, โImplementation of the policy is our major concern and problem. Not the policy itself. If you want to implement such a policy, there is a need for you to make public enlightenment and engagement with stakeholders before you arrive at the implementation stage.
โIf you want to implement any policy as a leader, you need to take many things into consideration. People are suffering.
โYou cannot successfully implement a policy without properly planning for it. You need strong institutions if you want to implement this kind of policy.โ
He added, โProbably, the people targeted by the poor implementation of this policy are not even suffering like other citizens. Something must be done to ameliorate this hardship being faced by our people.
โSince we are facing what I now call COVID-23, we are making all preparations towards distributing palliatives again.โ
The debilitating effects of the Naira swap policy enacted by the Central Bank of Nigeria (CBN) has elicited a scathing critique from the Academic Staff Union of Universities (ASUU).
Professor Emmanuel Osodeke, in a statement issued on Friday, slammed the CBN Governor, Godwin Emefiele, for ambushing Nigerians with the policy.
โNigerians are gasping for breath under the suffocating atmosphere created by the ruling class is to state the obvious,โ he stated.
The ASUU president added that in order to adequately assess the extent of the harm caused by the crisis brought on by the countryโs currency redesign, developmental economists would need to make extremely serious efforts.
โThe ambush tactic of Godwin Emefiele to โeliminate cashโ was applied in India in 2016 with unsalutary consequences. So, ASUU commends the Supreme Court for siding with the suffering Nigerians, whose miserable lives would have been compounded by Emefieleโs policy if they are not sent to their early graves by it.
โIn the same way governmentโs explanation on non-circulation of the redesigned currency is meaningless, no attempt to rationalise non-accessibility of petroleum products is tenable. This outgoing government raised Nigeriansโ hope of fixing the countryโs refineries when it was coming to power in 2015.
โEight years down the line, it has been giving one excuse after another; allowing a free rein to the oil subsidy scammers! Nigerians know the truth; they know the local refineries can work if the core leadership of the ruling class is willing to commit class suicide. But itโs a poisonous tablet none is willing to swallow.โ
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Meanwhile, the National Council of States declared its support for the naira redesign policy.
Abubakar Malami, Nigeriaโs attorney-general, said this while addressing journalists at the end of the councilโs meeting at the State House, Abuja, on Friday.
Pastor Peters Omoragbon, a former governorship candidate of the National Conscience Party (NCP) in Edo State has called for the immediate sack of the Central Bank Governor, Godwin Emefiele.
He said โIf you ask me, I would advocate that the CBN governor, Mr Emefilele be sacked with immediate effect for his shoddy handling of the entire exercise.โ
Omoragbon who made the call during a chat with the media in Lagos on Thursday, stated that Emefiele was the worst Central Bank governor in the history of Nigeria, and therefore called on President Muhammadu Buhari to sack him over the shoddy manner he handled the issue of new naira notes introduction.
He said the claim that the policy was targeted against the politicians could not fly because the politicians were not suffering the effect of the naira swap, rather it was the already impoverished masses who were bearing the brunt.
โToday, how many elites including the politicians are suffering from the effect of this anti-people policy? None! It is the masses that are going about naked and mentally traumatised that are suffering today.โ
Read also:Nigerian govt orders oil marketers to accept bank transfer, PoS transactions as naira scarcity bites hard
Omoragbon also noted that by the poor handling of the new naira notes, Emefiele had brought untold hardship to the people of Nigeria and bad image not only to Muhammadu Buhari, but also the entire ruling class.
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โFor his shoddy handling of the entire exercise he has brought untoward embarrassment to President Buhari and his team and untoward hardship to the citizens of Nigeria.โ
The Edo born politician said that as good as the intentions of the currency policy might have appeared, the timing was and is very bad. โLet me express my disappointment in the wisdom and timing behind the currency swap by the government.
โAs good as the intentions might appear, the timing was and is very bad. You do not execute a policy with a predetermined subjective mind-set in the garb of fighting corruption whereas, it is achieving the exact opposite,โ Omoragbon stated
The Central Bank of Nigeria, CBN, on Thursday promised to supply commercial banks with plenty of funds to address the new Naira note scarcity in Kogi State.
Kogi CBN Branch Controller, Ahmed Sule, made the vow while speaking with NAN in his office in Lokoja.
Recall with ๐น๐๐๐๐ ๐ฝ๐๐๐๐๐๐๐๐ ๐ธ๐๐๐๐ that protesters had on Wednesday picketed some commercial banks over purported non-compliance with the apex bankโs directive to make the new notes available to citizens across the nation.
According to Sule, the scarcity of the new Naira might have resulted in some commercial banks not opening for customers on Wednesday and Thursday.
He said, โI wish to announce to you that weโre expecting our stock of the New Naira notes very soon for distribution to the commercial banks operating here in Kogi.
โWeโre aware of the difficult times our fellow citizens are in right now, and we expect the [commercial] banks to help ameliorate the peopleโs sufferings by dispensing as we so directed them.
โWeโll soon invite them [commercial banks] to come for their allocations as weโre expecting it today, being Thursday.
Foremost human rights activist, Femi Falana, SAN, has disclosed why the Central Bank of Nigeria, CBN, must comply with the Supreme Court order regarding the currency swap crisis.
Falana, in a statement on Thursday, said the apex bank should not fall for the reports and opinions indicating that it could ignore the Supreme Courtโs judgement restraining it from enforcing the ban on the old Naira notes.
In his statement titled, โWhy CBN Must Obey Ex Parte Order Of Supreme Courtโ, he highlighted many cases supporting the courtโs decision.
He asked CBN and its management to allow the judgement to run its entire course in the interim, pending an order of dismissal filed by the Federal Government.
Falana warned doing otherwise would spell doom and chaos for the country.
โIn the interim, the Federal Government of Nigeria and its agencies, including the Central Bank of Nigeria, are bound by the valid and subsisting ex parte order of the Supreme Court of Nigeria until it is set aside by the same court. The alternative is to compound the ongoing anarchy and chaos in the land,โ he said
Twenty-four hours to the deadline set by the Central Bank of Nigeria, CBN, for the swap of the old naira notes, there is a high level of anxiety across the country.
The Supreme Court had on Wednesday temporarily halted the move by the Central Bank of Nigeria, CBN, to ban the use of the old naira notes from February 10, 2023.
A 7-member panel led by Justice John Okoro halted the move while ruling in an ex-parte application brought by three northern States of Kaduna, Kogi and Zamfara.
The three States had specifically applied for an order of Interim Injunction restraining โthe federal government through the Central Bank of Nigeria (CBN) or the commercial banks from suspending or determining or ending on February 10, 2023, the time frame with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory injunctionโ.
Moving the application on Wednesday, counsel to the applicants, Mr A. I. Mustapha, SAN, had urged the apex court to grant the application in the interest of justice and the well-being of Nigerians.
He stated that the policy of the government has led to an โexcruciating situation that is almost leading to anarchy in the land.โ
The ruling has since generated mixed reactions from across the country.
While some citizens, including the camp of the APC Presidential candidate, Bola Tinubu are hailing the ruling, others have asked President Muhammadu Buhari to override it with an executive order.
Few hours after the ruling, the Governor of the CBN, Godwin Emefiele met with President Buhari at the Aso Rock Villa.
Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami, SAN, has already filed processes challenging the jurisdiction of the Supreme Court to suspend the scheduled deadline.
Malami, in a preliminary objection he filed on behalf of the Federal Government, applied for an order striking out the suit that three Northern States filed to halt the full implementation of the new monetary policy that was introduced by the Central Bank of Nigeria, CBN.
He is the sole defendant in the suit marked: SC/CV/162/2023, where he applied for its outright dismissal on the basis that the three States lacked the locus-standi.
Listing his grounds for challenging the power of the Supreme Court to intervene in the matter, Malami accused the three States of opposing FGโs power, through its agency, the CBN, to withdraw old banknotes and introduce new ones.
Nigerians are anxiously awaiting the next step of the CBN, especially with the deadline ending on Friday, February 10, just as President Buhari had earlier asked for one week to take a major decision on the matter one way or the other.
Speaking to ๐น๐๐๐๐ ๐ฝ๐๐๐๐๐๐๐๐’ known Media on Wednesday, the Head of the Peoples Democratic Party, PDP, Digital Media, Barrister Tony Ehilebo claimed of a certain intelligence that the ruling party, All Progressives Congress, APC, is planning to swap N21 billion it had set out for vote-buying.
He, however, said that the efforts of Governor Nasir El-Rufia of Kaduna State and his cohorts to stop the CBN policy will fail because the States lacked such powers.
He alleged that, โThe intelligence reaching us is that the APC, especially in States that they control are using the instrumentality of the State government and trying to swap N21 billion.
โWe donโt know if this has gone through or if it has happened but we have raised all the necessary alarms.
โThese are the questions we should be asking. We expect that the NFIU which has direct access to any suspicious cash transaction should be on top of its job.
โIโm one of the advocates, one of the drafters of the creation of the National Financial Intelligence Unit Bill and I expect it to live up to expectation, which is why I donโt have any problem with the CBN policy.
โIt may not even favour the PDP as far as Iโm concerned but it is in the best interest of Nigeria. Weโll really like whoever Nigerians want, which I believe is the PDP at this point in time.โ
Speaking further on the recent Supreme Court injunction, he added, โIt is a normal procedure of the court. When you run to the court with the cry that lives are being affected, it is the Courtโs duty to first intervene and then bring all parties to the table and provide opportunity for response.
โThat is why injunctions only have a lifespan of seven days at most. However, I suspect that this will be reversed. If you notice, it was given on 7th and it expires on 15th and that is when the hearing proper is.
โIf I were the CBN, on the 15th Iโll carry on with that policy. Of course, the CBN is legitimately carrying out its function and I donโt think the States have any say whatsoever to impede on functions that are constitutionally guaranteed by the banks and other financial institutionsโ acts.
โThe CBN is guaranteed to be independent of the judiciary and free from the encumbrance of people like El-rufai and his cohorts.โ
But reacting to the allegations of planning to buy votes and rig the forthcoming election, Comrade Okpokwu Ogenyi, Convener, Concerned APC Members and member APC Presidential Campaign Council and Civil Society Directorate, wondered why the APC whose government introduced the BVAS and signed the Electoral Act 2022 into law, should be the one being accused of planning to rig elections.
Speaking to ๐น๐๐๐๐ ๐ฝ๐๐๐๐๐๐๐๐’ known Media, he said, โYes. Some members of my party are in court to challenge the policy of the Central Bank of Nigeria and some of the reasons they gave were very clear.
โEl-Rufia made it clear that in the entire Borno State, it is only two local governments that banks are operating.
โThe same in Yobe State. He said that he was campaigning against the effect of the policy on the people. He even said the policy has nothing to do with the CBN but Mr. President who changed currency even in his first tenure as military head of state.
โThat the timing is wrong. In my personal opinion, I want to tell you that Governor El-Rufia is in court to seek redress in his capacity as governor of Kaduna State. He is speaking for the people of Kaduna State not for the entire All Progressives Congress.
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โOn the allegations of swapping over N21b for vote, let me say that just yesterday, the party launched the Renewed Hope Ambassadors of Nigeria to mobilise 20-man canvassers in each of the polling units.
โA party that is resorting to vote-buying will not initiate such a volume of projects. I want you to also know that my party is not ready to buy votes. The BVAS was introduced by my party.
โThe Electoral Act 2022 was signed by my party. So the party is putting up measures to checkmate some of the excesses during elections, such as rigging, vote-buying and all of that.โ
The federal government Wednesday filed a preliminary objection challenging the application by Kaduna, Zamfara and Kogi states against the implementation of the February 10 currency swap deadline.
In the objection filed by Mahmud Magaji (SAN), the federal government argued that the suit ought not to have been brought before the Supreme Court as the reliefs sought were against an agency of the federal government, the CBN on its powers to withdraw old banknotes and introduce new ones under the CBN Act, 2007.
The federal government argued that the Federal High Court had the proper jurisdiction to entertain such suits under Section 251(1)(a)(p)(q) & (r) of the Constitution (exclusive jurisdiction of the Federal High Court).
While contending that the action before the apex court constituted an abuse of judicial process, the federal government said the state governments have no locus standi and reasonable cause of action to warrant the โinvocation of the original jurisdiction of this honourable court.โ
Before the objection by the federal government, the Supreme Court earlier yesterday ordered the CBN to allow the use of the old N1000, N500 and N200 notes beyond February 10 and fixed February 15 to hear the case.
A seven-member panel of justices presided by Justice John Inyang Okoro made the restraining order in a unanimous ruling.
Arguing the motion, counsel to the governors of Kaduna, Kogi and Zamfara states, Abdulhakeem Mustapha (SAN) said the matter was important and had come with an affidavit of urgency.
But Magaji Mahmud (SAN), who announced appearance for the Attorney-General of the Federation, was not heard by the apex court being an ex parte motion.
It is just an order not a judgment- Presidency Source
Reacting to the Supreme Court order, a source in the Presidency said: โGenerally speaking, it is not a judgment, it is just an order. An ex-parte order is a constitutional leverage specifically given to judges to make an order in exceptional circumstances granting the request of an applicant in a suit in the interim without hearing from the other party.
โThe order is only temporary. The judge will hold a full hearing within a short period of time,โ he said. Millions of Nigerians have been thrown into confusion following the mopping up of over 1.7trillion old naira notes and the glaring unavailability of the redesigned notes.
The development had led to endless queues in banking halls and ATMs as well as demonstrations in parts of the country.
Extend time โ IMF
Lending its voice, the IMF said the CBN should consider extending the February 10 deadline for the swapping of old naira.
The Fund in a statement on Wednesday cited disruptions in trade and payments resulting from the exercise.
โIn light of hardships caused by disruptions to trade and payments due to the shortage of new bank notes available to the public in spite of measures introduced by the CBN to mitigate the challenges in the banknote swap process, the IMF encourages the CBN to consider extending the deadline, should problems persist in the next few days leading up to the February 10, 2023 deadline,โ Ari Aisen, the Fundโs Resident Representative to Nigeria, said.
Buhari receives Emefiele, Malami
President Muhammadu Buhari yesterday met with the CBN governor, Godwin Emefiele as well as the Attorney General of the Federation and Minister of Justice, Abubakar Malami at the Presidential Villa, Abuja.
The meeting was held a few hours after the Supreme Court had restrained the federal government from enforcing the deadline of old naira notes.
Daily Trust findings revealed that Emefiele had met with Malami twice on Tuesday ahead of the Supreme Court judgment.
Tinubu/Shettima Campaign Council hails S/Court
The presidential candidate of the ruling All Progressives Congress (APC), Bola Ahmed Tinubu has hailed state governors for standing on the side of the Nigerian people over the CBN new naira policy.
Tinubu in a statement by Bayo Onanuga, the Director, Media and Publicity, APC Presidential Campaign Council, said the governors and especially the APC governors who instituted the suit against the CBN and federal government at the Supreme Court acted well on behalf of the hapless Nigerians who have been made to bear the brunt of naira redesign policy that has been โpoorly implemented.โ
Tinubu, a former governor of Lagos State, said the governors have saved the country from needless political and economic crises and miseries, which have clearly become the unintended consequences of the monetary policy of the apex bank.
Also, Governor Nasir El-Rufai of Kaduna State has urged the residents of the state, particularly traders, to stop taking the old notes to bank for deposit.
The governor also urged the people to continue transactions with the old notes, saying nobody can stop them even as the February 10 deadline approaches.
The governor also promised the traders and the people of the state that nobody in the state will lose his hard earned money because of the naira redesign policy.
El-Rufai in a video clip seen by Daily Trust on Social media, made the comment on Tuesday at a meeting with leaders of traders in the state. He told them to pass the message to others in their state to stop taking their money to banks.
โStop taking your money to banks because when you deposit nine naira only one naira will be given to you because the notes are scarce.
โThe law says if you have old notes with you even if it takes 100 years and you take it to the central bank it will be accepted. So keep your money with you even if it will take you 100 years,โ he said.
Experts proffer solution as IMF seeks deadline extension
Economists and financial experts said yesterday that the only way to resolve the financial crisis in the country is to restore normal cash flow to restart the economy and ease the pains millions of Nigerians are going through.
The experts told the Daily Trust that the issues could be resolved when the right thing is done.
The CEO of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, welcomed the restraining order of the Supreme Court on the timeline for the currency swap. He said the action will restore normalcy to economic activities, especially in the distributive trade sector, the informal sector and rural economy.
The CPPE reiterates its position that given the huge population of over 200million, the large informal sector, which accounts for over 40% of the GDP, the large rural economy and the over 30 million unbanked Nigerians, the CBN cash swap model and timeline was greatly flawed.
โIt is inappropriate to arbitrarily cut down on currency in circulation without due regard to data, empirical studies and global best practices,โ he said.
According to Yusuf, โWe affirm our position that N2.6 trillion in circulation is not too much for the Nigerian economy with a GDP of about N250 trillion. Any attempt to arbitrarily cut it will create a crisis.
โIt is unacceptable that citizens are denied access to their cash deposited for purposes of cash swap. This could undermine the confidence of the citizens in the banking system and pose a major risk to the financial inclusion objective of the CBN.
โIn Nigeria, cash to GDP ratio is less than 1.5%; while cash/money supply ratio is just about 5%. These are some of the best currency ratios globally and a mark of the remarkable progress that has been made in cashless policy drive. Cash to GDP in the United States is about 9%; in the Eurozone it is about 10%.
โThis underlines the fact that cash is not the problem of the Nigerian economy or monetary policy effectiveness. CBN Ways and Means financing of over N22 trillion is a much bigger problem for liquidity management.
โIt is regrettable that a purely monetary policy management issue has been profoundly politicised as witnessed in the past few weeks. This has obscured fundamental economic conversations,โ he said.
Also speaking, an economist, Prof. Uche Uwaleke noted that it will be difficult to quantify how much money is in circulation that will determine if Nigeriaโs economy is cashless or not. He, however, said that the CBN should increase supply of the new notes and expand its supply channels.
โIf CBN says maximum over the counter withdrawals for a week is N500, 000 for individuals, then it should expand the supply chain for the new notes.
โThe micro finance banks and more PoS operators should be involved in the supply chain. Also, the lower denominations should be printed more to ensure that the new notes reach Nigerians, especially traders that carry out their functions,โ he said.
On the other hand, he urged the CBN to obey the order of the Supreme Court on the February 10 expiration of old notes.
โAll over the world, especially where central banks are independent, the conduct of monetary policy is their exclusive preserve- a responsibility not encumbered by either the executive arm or the Judiciary,โ he said
The Supreme Court on Wednesday restrained the Central Bank of Nigeria (CBN) and the Federal Government have from effecting the February 10, 2023 deadline to phase out the old Naira notes.
In a ruling delivered by a seven-man panel of the Supreme Court led by Justice John Okoro, granted an ex parte application that the old Naira notes will remain a legal tender until a final decision has been made on the suit brought to the court by three northern states; Kaduna, Kogi and Zamfara.
Recall with ๐น๐๐๐๐ ๐ฝ๐๐๐๐๐๐๐๐ ๐ธ๐๐๐๐ that the CBN had redesigned the N200, N500 and N1,000 banknotes, and released the new currencies in December 2022.
The financial regulator also informed Nigerians that the old Naira notes would cease to be legal starting from January 31, 2023, but it later extended the deadline to February 10, 2023.
Kaduna, Kogi and Zamfara governments dragged the CBN and FG to court over the impact of the transition from old Naira to the new Naira notes.
Through their counsel, AbdulHakeem Uthman Mustapha (SAN), they asked the Surpreme Court to intervene as the deadline would increase the hardship of persons living within the three states.
They applied for an interim injunction through an ex-parte motion to temporarily halt the CBN and Nigerian commercial banks from enforcing the deadline to phase out the old Naira
Mustapha told the court that, โUnless this Honourable Court intervenes, the Government and people of Kaduna, Kogi and Zamfara State will continue to go through a lot of hardship and would ultimately suffer great loss as a result of the insufficient and unreasonable time within which the Federal Government is embarking on the ongoing currency redesign policy.โ
The three states argued that their residents have deposited their money to the banks as directed by the central bank, but thereโs insufficient of new Naira notes to meet the demands of their citizens.
They said the 10 days extension of the deadline is not enough to cushion the chaos and hardship the Naira redesign policy has caused their residents, as they are still unable to access their money to finance their daily activities.
A cross-section of Nigerians has reacted to the Supreme Courtโs decision to temporarily halt the move by the Federal Government to ban the use of the old naira notes from February 10, 2023.
๐น๐๐๐๐ ๐ฝ๐๐๐๐๐๐๐๐ ๐ธ๐๐๐๐ had reported on Wednesday that a seven-member panel led by Justice John Okoro, stopped the move of the federal government in a ruling in an exparte application brought by three northern states of Kaduna, Kogi and Zamfara.
The three states had specifically applied for an order of Interim Injunction restraining โthe federal government through the Central Bank of Nigeria (CBN) or the commercial banks from suspending or determining or ending on February 10, 2023, the time frame with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for an interlocutory injunctionโ.
Moving the application on Wednesday, counsel to the applicants, Mr A. I. Mustapha, SAN, had urged the Supreme Court to grant the application in the interest of justice and the well-being of Nigeria.
Mustapha stated that the governmentโs policy has led to an โexcruciating situation that is almost leading to anarchy in the land โ.
While he referred to CBNโs statistics which put the number of people who donโt have bank accounts at over 60 per cent, Mustapha lamented that the few Nigerians with bank accounts couldnโt even access their monies from the bank as a result of the policy.
Delivering a ruling in the motion, Justice Okoro held that after careful consideration of the motion exparte this application is granted as prayed, โAn order of Interim Injunction restraining the federal government through the Central Bank of Nigeria (CBN) or the commercial banks from suspending or determining or ending on February 10, 2023, the time frame with which the now older version of the 200, 500 and 1,000 denomination of the naira may no longer be legal tender pending the hearing and determination of their motion on notice for interlocutory injunctionโ.
He, however, adjourned to February 15, 2023, for a hearing of the main suit.
However, Nigerians have taken to Twitter to react to the development. Some criticized the Supreme Courtโs decision, while others hailed the apex court.
Here are some comments gathered by ๐น๐๐๐๐ ๐ฝ๐๐๐๐๐๐๐๐ ๐ธ๐๐๐๐ from Twitter:
@aholagunju, โA win for democracy!
@MaziGomez, โThis is the time Buhari should disobey a court order. Not all those ones heโs been doing.โ
@KenUttih, โYet again, the same Supreme Court. We need something beyond the norm to fight corruption in Nigeria. Citizens must play the major role to make it happen no matter the method adopted.โ
@OpigoPeter, โThis whole new Naira note drama is beginning to look like a comedy show.โ
@SkinnyBoi001, โEven if the deadline is extended to December this year, people would still go through what they are going through now.โ
@Classic84073745, โWhy are all these APC governors taking this money issue very seriously? They never take security and educational matters seriously like this.โ
@Danidon, โClearly, President Buhari is not the strongest person in APC. Why are they bent on stopping this? Why are they not compelling CBN to make the new notes more available instead?
@Mr_temitope, โNigerian politicians always have their own way. Now, it seems like the court has joined them.โ
@Mr_temitope, โNigeria politicians will always have their way. This is a sad reality.โ
@austinemarobe, โIf they can do it for old Naira notes, they can do it for Fuel and all other problems we are having in the country.โ
@630bbba13a784b7, โPain relief news, CBN should do the needful by making a new Naira note available for us. People are going through a lot. Only you know.โ
Following the protests that rocked Abeokuta, the Ogun State capital, over the cash crunch, on Tuesday, the state governor, Dapo Abiodun, has called on the protesters to stop their protests and allow the outcome of his engagement with the Bankers Forum and the Central Bank to yield fruits.
Gov. Abiodun, who made this known during the statutory meeting of the council of Obas, held at the Obaโs complex, Oke-Mosan, Abeokuta, noted that the Central Bank of Nigeria is doing its best to arrest the situation.
The governor said the matter was being discussed at the highest level with both President Muhammadu Buhari and the CBN governor, Godwin Emefiele, in the quest to resolve the crisis.
The governor recalled that All Progressives Congress governors had met with President Muhammadu Buhari, pleading that the old naira notes should be allowed to run as legal tender along with the redesigned currency, pending the resolution of the cash crunch crisis.
While calling for calm, the governor said the voices of the protesters had been heard loud and clear and that the government is responding.
โI call on our youths to discontinue the street protests and constructively engage the government in finding solutions.
โIt has become necessary to formally appeal to all concerned, having heard from many concerned Nigerians and having conducted series of meetings, along with my brother governors, with President Muhammadu Buhari and the Governor of Central Bank, Godwin Emefiele and security chiefs on the challenges, sufferings and pains being experienced over this cash scarcity and cash swap occasioned by the redesigning of our currency.
โI have also personally had to engage the controller of the Central Bank of Nigeria in Abeokuta and other bank managers to seek relief on the amounts that citizens can withdraw in exchange for deposits made in commercial banks and extracted a commitment that people would have access to their deposited funds without hitches, as CBN will supply adequately to the commercial banks.
โI understand the frustration, disappointments of our citizens queuing at Automated Teller Machines (ATMs), waiting to cash money for hours or entering banking halls only to be turned back or given so little that is not enough to meet their immediate needsโ, the governor said.
He added that he does not have a doubt that the intention of this policy was not to unleash hardship and suffering on our teeming populace.
โWe will hear from the President as to what steps are being taken to bring succour and relief to Nigerians. My plea to our monarchs being the closest to the grassroots is to ensure the maintenance of peace in their domains with the support of their subjects.
โWe will not be where we are in terms of socio-economic development in an atmosphere of insecurity; so we owe a lot to you and my charge to you this afternoon is that you please help us manage this situation.
โOur people will listen to you, they will trust and believe you, please help us to intervene. Ogun State has always had a record of managing our problems in a very different way. When we had #EndSARS, we remained the most peaceful state across the country and I do not have a doubt that in the same manner that we managed ourselves during #EndSARS, we will also do so during this period,โ he said.
Governor Abiodun further said it is disheartening to see bank buildings being vandalised and people resorting to violence to register their displeasure.
โWe shouldnโt allow our state to descend to that level. We are a peaceful and peace-loving people and the safest state in the country. I want to use this medium to plead with our youths that when there is a problem, the solution is not to hit the streets and to start protest marches; we can not solve a problem with another problem.
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โCivil disobedience will rather exacerbate the anguish in the land. Let us stay away from avoidable loss of lives and properties. Please, let us embrace peace. We are a very peaceful state; we are very orderly and we have spent a lot of time and energy to invest in the peace and security of our people. We must eschew provocation that could lead to a breakdown of law and order.โ
In his remarks, the Chairman, Ogun State Council of Obas and the Paramount ruler of Remoland, Oba Babatunde Ajayi, while thanking the Governor for looking after the welfare of the traditional institution in the state, noted that the 2021 Obas law is a comprehensive piece of legislation.
He charged monarchs in the state to go back and look at the laws all over again as it is meant to give a lot of guidance in terms of appointment of Obas and Coronet Obas
The Supreme Court of Nigeria has restrained the Federal Government from continuing with the full implementation of the demonetization policy.
Three northern states, Kaduna, Kogi and Zamfara, had, in a motion ex-parte filed on February 3rd, prayed the apex court to halt the Central Bank of Nigeriaโs naira redesign policy.
A 7-man panel of the Supreme Court led by Justice John Okoro, in a unanimous ruling, granted an interim injunction restraining the FG, CBN, commercial banks etc, from implementing the February 10 deadline for the old 200, 500 and 1000 Naira notes to stop being a legal tender.
The court further held that the FG, CBN, and commercial banks must not continue with the deadline pending the determination of a notice on notice in respect of the issue on February 15. By the ruling, the old Naira notes continue to be legal tenders in Nigeria.
Spokesman for the Northern Elders Forum (NEF), Hakeem Baba-Ahmed, has warned the Nigerian government against pushing vulnerable Nigerians into war, in light of the attendant consequences of naira and cash scarcity in the country.
Baba-Ahmed in a tweet on Tuesday condemned the challenges facing the masses as a result of destructive policies of the government.
He wrote: โHow much can the people endure? Cant buy, cant sell, cant eat, cant move, not safe, not heard, not relevant. Is this politics or poor governance? Please do not push the poor too hard.โ
President Muhammadu Buhari has approved the Central Bank of Nigeriaโs (CBN) request for the extension of the deadline for swapping of old Naira notes to the redesigned ones.
A seven-day grace period, beginning on February 10 to February 17,2023, has also been approved to enable Nigerians to deposit their old notes at the CBN after the February deadline when the old currency would have lost its Legal Tender status.
10-day extension of the deadline from January 31, 2023, to February 10, 2023; to legitimately held by Nigerians and achieve more success in cash swap in our rural communities after which all old notes outside the CBN losses their Legal tender Status.โ
Whiile, โA 7-day grace period, beginning on February 10 to February 17,2023, in compliance with Sections 20(3) and 22 of the CBN Act allowing Nigerians to deposit their old notes at the CBN after the February deadline when the old currency would have lost its Legal Tender status.โ
This followed the Presidentโs meeting with the apex bankโs governor, Godwin Emefiele, in his country home in Daura, Katsina State on Sunday.
Emefiele briefed correspondents after the meeting, revealing that 75 percent of the N2.7 trillion held outside the banking system has been recovered.
He said, โWe are happy that so far, the exercise has achieved a success rate of over 75 percent of the N2.7 trillion held outside the banking system. Nigerians in the rural areas, villages, the aged and vulnerable have had the opportunity to swap their old notes; leveraging the Agent Naira Swap initiative as well as the CBN Senior staff nationwide sensitization team exercise.
โAside from those holding illicit/stolen Naira in their homes for speculative purposes, we do aim to give all Nigerians that have Naira legitimately earned and trapped, the opportunity to deposit their legitimately trapped monies at the CBN for exchange.
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Based on the foregoing, we have sought and obtained Mr Presidentโs approval for the following:
Our CBN staff currently on mass mobilization and monitoring together with officials of the EFCC and ICPC will work together to achieve these objectives.
โWe therefore appeal to all Nigerians to work with the Central Bank of Nigeria to ensure a hitch free the implementation of this very important process for program.โ
President Muhammadu Buhari on Tuesday held a meeting with representatives of the state governors and the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele.
Also present at the meeting which held behind closed doors at Aso Villa, Abuja was the chairman Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa.
Chairman of the Nigeria Governorsโ Forum, Aminu Tambuwal; and the Chairman of the Progressives Governorsโ Forum, Atiku Bagudu represented state governors.
Details from the meeting have not been made public as at the time of this report, but feelers suggest it may have been called to discuss and find a solution to the cash crunch which has hit the nation in recent times, over the cash swap and naira redesign policy of the apex bank.
Though details of the meeting was not made public, it comes after a meeting originally scheduled with the Nigerian Governorsโ Forum was cancelled.
State House sources however, believe the meeting was cancelled following a court order that stopped the Federal Government from extending the February 10 deadline for the swapping of three old naira notes set by the CBN
The Federal Government has blamed opposition parties for โrestrictingโ President Muhammadu Buhari from putting an end to the sufferings Nigerians are going through due to the cash crunch resulting from the naira redesign.
Minister of Information and Culture, Lai Mohammed, who made the accusation at the 23rd edition of Buhariโs administration scorecard series (2015-2023) on Tuesday in Abuja, said the Federal Government was not unmindful of the inconveniences being faced by Nigerians because of the redesigning of the naira notes and fuel supply disruptions, but said attempts by Buhari to ameliorate the pains have been truncated by unscrupulous opposition parties.
The Minister said it was however, surprising that some opposition political parties ran to court to โobtain an injunction restraining the President and and the Central Bank of Nigeria from extending the February 10 deadline for Nigerians to swap their old notes for new ones.โ
โThe court action came after a number of opposition parties threatened to boycott the 2023 general elections if the deadline was extended,โ he said.
โThese curious actions by the parties concerned are clear evidence that the opposition has turned this whole issue into a political game, preferring to make Nigerians suffer more on the altar of an unconscionable political gamesmanship.
โOr how else can one explain the fact that these unscrupulous opposition parties donโt want any action that could reduce the pains being experienced by Nigerians?โ Mohammed queried.
The Minister of Works and Housing, Babatunde Fashola, has said that Nigerians are going through a tough time because of the new naira notes policy, saying he does not have cash.
The former two-time governor of Lagos stated this during an interview on Channels TVโs Politics Today.
Fashola said that the new policy is not working at the moment.
๐น๐๐๐๐ ๐ฝ๐๐๐๐๐๐๐๐ ๐ธ๐๐๐๐ reports that Nigerians have continued to queue at Automated Teller Machine (ATM) locations or pay high withdrawal charges to Point of Sale (PoS) operators to get the new naira notes.
ActionAid seeks permanent solutions to naira, fuel crises Bagudu restates Kebbiโs commitment to bio-fuel production After governors of the ruling All Progressives Congress (APC) under the aegis of the Progressive Governorsโ Forum (PGF) urged President Muhammadu Buhari to allow both the old and new naira notes co-exist last Friday, the president said he would take a critical decision on the issue in seven days.
Commenting on the naira redesign policy, Fashola said, โ The facts that I can talk about on the new policy is that I can see pain. I see people at ATMs. I see people in banks crowded struggling to get their money. I take feedback. I donโt have cash, too. I donโt. The policy is not working at this moment. It is causing unintended consequences.โ
The Central Bank of Nigeria (CBN) should have introduced N5,000 notes to avoid the hardship Nigerians are facing due to the Naira redesign, the Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Sola Obadimu, has said.
According to NACCIMA DG in a report by NAN on Monday, embarking on the currency redesign was a bad move by the apex bank.
Recall with ๐น๐๐๐๐ ๐ฝ๐๐๐๐๐๐๐๐ ๐ธ๐๐๐๐ that the head of the central bank, Godwin Emefiele, disclosed in October 2022 that the N200, N500 and N1,000 banknotes would be redesigned to mop up the N2.7 trillion in circulation.
Although the financial regulator denied any plan of introducing N5,000 notes, it went ahead to release the aforementioned denominations in December, stating that the old version would cease to be legal starting from January 31, 2023.
The apex bank later extended the deadline to February 10, 2023, after public outcry over the shortage of the new Naira notes in commercial banks.
๐น๐๐๐๐ ๐ฝ๐๐๐๐๐๐๐๐ ๐ธ๐๐๐๐ understands that the transition from the old Naira to the redesigned currencies has not been successful with Nigerians protesting at banks due to the inability to withdraw and buy goods.
NACCIMA DG said introducing N5,000 was the solution to mopping the N2.7 trillion in circulation, โIf I were the CBN governor, all I would have done was to have introduced a N5,000 note.โ
Obadimu also stated โThat would have helped to mop up the money in circulation without the kickbacks we are getting. Because it is a higher denomination, fewer amounts of bills would have been printed.โ
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Meanwhile, he supported the call of the CBN that Nigerians should embrace a cashless society, but he said the country wasnโt ready yet, as banks find it difficult to refund customers after a transaction declines.
He said, โFor instance, when a financial transaction declines, you get debited and the bank cannot refund you for up to three weeks even if the transaction is to the same bank.โ
Obadimu stated further, โSo, for the urban network to improve and for the rural areas to catch up, the government has to invest heavily in infrastructure so that every part of Nigeria will be digitised.โ
The Alliance on Surviving Covid-19 and Beyond (ASCAB) has condemned the ongoing scarcity of petrol and new naira notes across the country.
The group, in a statement signed by its interim Chairman, Femi Falana, on Monday, said the currency and fuel crises constitute a great challenge to economic survival of ordinary Nigerians.
The statement read: โThe Federal Government has unleashed untold hardship on the masses of Nigeria by the unprecedented scarcity of the Naira, fuel scarcity and skyrocketing rise in fuel prices. Fuel and currency scarcity is inexplicable and unacceptable.The Federal Government has shirked its obligation to guarantee the security and welfare of the Nigerian people as provided under Section 14(2)(b) of the Constitution of the Federal Republic of Nigeria, 1999, as amended.
โSporadic peaceful protests have erupted throughout the country expressing the deep displeasure of the masses.There is an urgent need for leading human and pro-democracy organisations to provide leadership in canalizing the energies and anger of the masses in order to give the protests direction and prevent anarchy, state terrorism and continued arbitrary repression of the masses.
โSince it is now clear that enough Naira notes have not been printed the Central Bank should allow the old and new Naira notes to be legal tender in Nigeria. This suggestion is in line with Section 22 of the Central Bank Act which permits the replacement of old currency notes with new ones after the deadline fixed by the CBN.
โMeanwhile, officials of the CBN and other banks involved in hoarding or selling the new currency notes should be prosecuted to serve as a deterent to other economic saboteurs.
โThe soldiers who unleashed violence on the students of the University of Benin as well as trigger happy troops who murdered a young man and injured several others at Ibadan, Oyo State should be arrested and prosecuted without any delay.
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โThe currency and fuel crises constitute unprecedented challenge to economic survival of ordinary people that may threaten the 2023 elections which provide an opportunity for the people to choose a party considered to be representative of their aspirations.
โUnless the twin crises of fuel and currency scarcity are immediately resolved within the timeline given by the President, ASCAB has resolved to call on the Nigerian people to commence series of peaceful mass actions in their communities to resist the unjustifiable economic hardship which may compel postponement of the forthcoming elections as INEC has hinted.
โIf the Federal Government fails to resolve the twin crises of fuel and currency scarcity before February 10, 2023 the country will witness nationwide peaceful mass actions by the Nigerian people.โ
There is a heavy security presence at the Central Bank of Nigeria (CBN), Abeokuta Branch.
Policemen in the early hours of Monday, deployed operatives to the Apex bank branch at Okelewo, Abeokuta to avert possible attacks by criminal elements.
๐น๐๐๐๐ ๐ฝ๐๐๐๐๐๐๐๐ ๐ธ๐๐๐๐ gathered that there was an intelligence report that some individuals might attack the bank over their inability to access the newly redesigned naira notes.
Our correspondent reports that armed policemen were positioned at strategic locations to prevent any breakdown of law and order.
Also, some commercial banks in Abeokuta restricted access to their premises over the fear of being attacked by angry customers.
In most banks, customers are only allowed to use Automated Teller Machines (ATM) instead of going into the banking halls.
It was reported that similar attacks were recorded in other parts of the country last week.
Meanwhile, customers are still in queues waiting to withdraw money from ATMs.
๐น๐๐๐๐ ๐ฝ๐๐๐๐๐๐๐๐ ๐ธ๐๐๐๐ reports that the scarcity of the new naira notes is still biting hard in Ogun State, affecting businesses and other activities.
This formed the basis of the text of a press conference jointly addressed by the Osun Civil Societies Coalition and the Peopleโs Advocates on the lingering scarcity of fuel and the redesigned Naira notes in the country on Monday, February 6, 2023, in Osogbo.
The statement jointly signed by Waheed Lawal and Emmanuel Olowu, Chairman and Publicity Secretary, Osun Civil Societies Coalition and The Peoples Advocates alluded to the fact that Nigerians are going through hell to get fuel and cash for personal use and business purposes.
While accusing the CBN of refusal to make available the redesigned Naira notes, they alleged that it amounted to a deliberate attempt to punish Nigerians unjustly.
It also demanded that the Central Bank of Nigeria make enough amount of the new Naira notes available to the banks for onward disbursement to the general public.
โConsidering the pains being experienced by the common men in getting cash for their livelihood, it would not be out of place to declare that the President Muhammadu Buhari-led Federal Government is inconsiderate and insensitive to the plight of the citizens.
โWe need not to tell you the agony of Nigerians who queue for more than six hours to get cash from ATM. Some people are even unlucky as they will not be able to get cash at the end of the day after spending several hours in the queue.
โThe Central Bank of Nigeria led by Mr Godwin Emefiele has clearly been playing hide-and-seek in the circulation of the new naira notes. We acknowledged the fact that there are saboteurs among the top echelon of the banking industries but the CBN has not also released enough amount of the redesigned denominations to banks through which they can be disbursed to the generality of people. This is responsible for the ridiculous amount of cash being paid to people over the counter.
โEconomically, the scarcity of cash has crippled many businesses and further pushed millions of Nigerians far below the poverty line. Petty traders no longer make sales because of cash transactions which their trading depends upon. We make bold to say that this financial policy of the Federal Government is doing more harm than good presently. There should have been another way round to maintain a balance between cash control and the wellbeing of the people.โ
Describing the sufferings of Nigerians as double jeopardy, the Civil Societies Organisations added that President Muhammadu Buhari has been laying lip service to ensuring that fuel is available at an affordable rate for Nigerians even as he directly supervises the Ministry of Petroleum Resources.
โIt equally speaks volumes of a President that has been supervising everything that has to do with petroleum resources to ask for seven days to address the fuel scarcity.
โThe two key issues have taken away the dignity of the majority of Nigerians. We have seen videos where men and women stripped themselves naked in protest against their inability to get cash. Car owners have long been sleeping at filling stations for fuel. Many people have been injured as a result of fights at filling stations and ATM centres. In Osun today, we have filling stations selling fuel between N350 and N400 per litre. The masses remain the end receiver of this economic mismanagement. The reverberating effect falls on the common people who go to the market to buy foodstuffs, board public transport, pay bills, etc.โ
While calling for an urgent address of the calamities, the group warned that if action is not taken, violent protests may be triggered nationwide.
โIt is the awareness of this fact, coupled with the intelligence report that made us to suspend the mass protest that was supposed to be held today. We do not want to create a platform for some elements whose only language is violence. The outcome of last weekโs protest in Ibadan and Benin is an indication that Nigeria is sitting on a keg of gunpowder. The hardship is becoming unbearable to the generality of the people.
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โWhile we suspend our protest for today, we will hit the streets anytime soon if the cash and fuel scarcity persists.โ
The group also called on security operatives and anti-graft agencies to go after bank managers and other officials who have been hoarding the new naira notes and sabotaging other processes of getting the new denominations widely circulated.
He said the untimely implementation of the naira swap policy is a way Emefiele wants to use to fight back for losing, according to ๐น๐๐๐๐ ๐ฝ๐๐๐๐๐๐๐๐’ known Media.
Ganduje, who unveiled the gubernatorial candidate and other APC candidates to the masses, stated this at a campaign rally in Tsanyawa, Kano.
He noted that the CBN Governor was out to sabotage the success of the ruling partyโs presidential candidate, Asiwaju Bola Ahmad Tinubu.
At the palaces of the District Heads of Kunchi and Tsanyawa local governments, the Governor urged community leaders to create awareness within their jurisdictions to โlet people know that the hardship people facing is singlehandedly caused by the CBN governor, to purposely cause confusion in our democratic process.
โThe CBN Governor is only doing this to cause confusion in the forthcoming elections for not just reason.
โHe has not been in good mood for long because he failed to secure a presidential ticket on the platform of our great party, the APC.
โCurrency redesign is done across the globe, but not in the way we are witnessing in our country. The timing is wrong, the deadline given is very wrong and deliberate,โ Ganduje said.
The Governor said the Kano State Government and APC in the State are totally against the CBN Governorโs action.
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Ganduje said the Kano State Government will invite bank managers in the state to explain why there growing scarcity of banknotes, as part of measures to cushion the effects of the hardship caused by the naira swap.
โWe will summon bank managers very soon to interrogate them on the shortage of new naira notes in banks.
โThey should come over and explain to us, why our people are still suffering over this issue of Naira Swap. And I will go to them individually to supervise what is happening and why,โ he said
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