Currency swap: Emefiele bows to pressure, says no Nigerian ‘II lose old notes after Feb. 10

 

COMFORT EKELEME, Business Editor

IBRAHIM QUADRI , Lagos,

Jonas Ezieke, Abuja.

 

The Governor of the Central Bank of Nigeria CBN Godwin Emefiele has on Tuesday bowed to pressure of the threat by the House of Representatives Ad-hoc Committee on New Naira Design and appeared before the probe panel to explain the role of the monetary authorities on the new bank notes.

 

It would be recalled that on Monday January 30 ,2023 Chairman of the Ad-hoc Committee and House Leader Hon.Alhassan Ado Doguwa had in a statement issued to newsmen threatened to issue a warrant of arrest on the apex bank helmsman for failing to appear before the House after two invitations by the House Ad-hoc panel.

 

The House had previously in a resolution after a motion sponsored by Hon.Sada Soli (Katsina,APC) on the need to review the Central Bank of Nigeria CBN New Naira Notes Design invited the apex bank boss to come and she’d lights on the issue of new bank notes and deadline for use of old notes

 

But the CBN governor failed to appear before the House twice but rather sent a Deputy Governor in representative capacity to the House who told the lawmakers that he is out of the country on medical vacation.

 

However, appearing before the House Ad-hoc Committee, the apex bank boss apologized to the House for his inability to honour the invitation extended to him twice by the committee saying that he was out of the country on the dates of invitations.

 

He said that the CBN Act empowers the monetary authorities to redesign the country bank notes every five to eight years adding that the latest redesign of the Nigerian Naira is coming after nineteen years of the last exercise.

 

He told the House Committee that currency management is a key function

of the Central Bank the world over and the apex bank uses the redesign of the legal tender of the country to control money circulation.

 

He also said that the latest Nigerian currency redesign is because there is too much money in circulation as there is N1.4 trillion in circulation in 2015 compared to the N3.3 trillion in circulation in 2022 by CBN statistics in the country.

 

He also said that more there is more than NN2.3 trillion Naira in circulation currently in Nigeria that is outside the vault of the CBN adding that the money in the hands of the private individuals does not allow the CBN to do monetary policy control effectively.

 

While being grilled by the House Ad-hoc Committee Chairman Hon Doguwa on the deadline given by the apex bank on the use of old Naira notes.he said so far the apex bank had been abke to collect N1.9 trillion out of the N2.7 trillion in circulation.

 

But the lawmakers insisted that the timing of the new currency resign is not proper as many bank customers and businesses are being affected by the policy.

 

The House Committee helmsman and a member of the House panel Hon.Babangida Ibrahim later requested that the apex bank submits to the House panel a weekly report on the compliance of commercial bank on the  modalities for the disbursement of the new currency.

 

Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, told federal lawmakers that the naira redesign is in the overall interest of Nigerians and the economy and no one will lose money.

 

He said that subject to the provision of Section 20(3) of the CBN Act, Nigerians would be given the opportunity to redeem the face value of the naira in their possession after the currency would have lost its legal tender status on February 10, 2023, deadline only at the CBN.

 

 

Mr. Emefiele spoke at a meeting with the ad-hoc committee of the House of Representatives on the review of the bank’s cashless policy and extension of the timeframe of the currency swap programme.

 

“Nigerians will not lose their money,” he declared, just as he sought the cooperation of the National Assembly to ensure the success of the programme.

 

While reeling out the steps taken by the bank to ensure the effective distribution of the new banknotes, he disclosed that about N1.9 trillion had so far been collected since the commencement of the exercise.

Meanwhile, The Economic and Financial Crimes Commission (EFCC) has said it arrested members of a syndicate of currency racketeers hoarding and trading in the redesigned Naira notes in Abuja.

According to the EFCC spokesperson, Wilson Uwujaren, the operations were carried out in Zone 4 and Dei Dei axis of the Federal Capital Territory between Saturday and Monday.

He noted that the operation followed intelligence on activities of unscrupulous currency speculators who were exploiting citizens by offering them the new naira notes for foreign currencies at below the going rate.

The action came a day after the governor of the Central Bank of Nigeria, Godwin Emefile, said the apex bank would collaborate with law enforcement agencies such as the EFCC and the Independent Corrupt Practices and Other Related Offences Commission, to track such heavy withdrawals.

The CBN also extended the deadline for the validity of the old N200, N500 and N1, 000 Naira notes from 31 January to 10 February.

Also, on Monday, the Department of State Security Service revealed that its operatives arrested some currency traders who have turned the sale of newly redesigned notes into brisk business.

The secret police also alleged that the perpetrators were working in cahoots with officials of commercial banks.

Meanwhile, the EFCC further noted that its findings revealed that some of the money traders are working with officials of Money Deposit Banks, adding that it’ll extend its operation to all major commercial centres across the country until all syndicates involved in the illegal trade are demobilized.

The anti-graft agency also urged financial market operators to ensure compliance with the guidelines set by the Central Bank of Nigeria.

It added, “The suspects have made useful statements, including a disclosure that they were acting in cohort with some unscrupulous officials of Money Deposit Banks.

“The commission will extend the operation to all the major commercial centres of the country until all the syndicates involved in the illegal trade are demobilized. Financial system operators are also warned to desist from the sharp practices or risk arrest and prosecution.

“Zonal commanders of the EFCC also met with officials of various banks in their commands in an effort to ascertain the volume of the new notes issued to the commercial banks and how the banks were dispensing the monies to their customers.

“The commanders urged the financial market operators to ensure compliance with the guidelines set by the Central Bank of Nigeria while disclosing that they have dispatched operatives across their Commands to monitor the level of compliance by banks and other operators in the financial market.”

.Lagosians groan as banks limit non-card holders withdrawal to N2, 000

 

As the scarcity of new naira notes continues to bite, most Nigerian banks yesterday in Lagos limited the amount non customers can withdraw from their Automatic Teller Machine (ATM) to N2, 000.00.

This is against the new withdrawal regime which pegged the maximum cash withdrawal per week via ATM at N100, 000 subject to a maximum of N20, 000 cash withdrawal per day.

Although the bank said the developments was aimed at letting the redesigned notes go round, but customers of the banks were permitted to withdraw more.

Some customers who spoke to Daily Champion expressed dissatisfaction over the attitude of bank managers towards ensuring that Nigerian are able to get these notes.

At some of the bank branches visited by Daily Champion, customers were seen on a long cue, and some going home without getting any of the notes, a development they said was targeting at making a mess of the good intentions of the Central Bank of Nigeria (CBN).

 

At Access Bank, Simbiat Abiola Ikeja Branch, the ATM withdrawal limit was set N5, 000 for its own customers and N2, 000 for non-customers, while at Stanbic IBTC, Oshodi the limit was put at N2, 000 for non-customers and customer are free to withdraw as much as they want.

Mr. Ikenna Orji, a Businessman, who spoke to Daily Champion maintained that most bank managers are sabotaging the efforts of CBN.

He said, “If really CBN said they have released money, there is every tendency that some bank managers are doing deals with politicians on the new notes.

“They will carry the new notes and give them, here we are on the cue suffering. I wish Nigerian will be bold enough to march into the banking halls and challenge the managers. We don’t deserve this stress. What will N2, 000.00 do for a family man,” he queried.

Another customer who spoke on the condition of anonymity maintained that there is need for the regulators to monitor activities of the banks and apply sanction when necessary.

He said the recent arrest of those selling the new notes by the Department of State services (DSS), was commendable, adding that Nigerians does not deserve this hardship.

“I cued for hours at a particular ATM to get just the N2, 000.00 to see what I can buy with it for my family, at the end of the day, the said the money has finished. I went hole without any money, tell me what my family will eat,” our source said.

According a staff of one the commercial banks, who spoke on the condition of anonymity, “Banks don’t have enough of the new notes so each bank is setting ATM withdrawal limits based on their liquidity. This is what we are facing.

CBN had said that only denominations of N200 and below shall be loaded into ATMs while the maximum amount that can be withdrawn via the Point of Sale (POS) terminal was limited to N20, 000 daily.

 

.Lagos Assembly backs NASS on extension

 

The Lagos State House of Assembly on Tuesday joined array of Nigeriana calling for the extension of the currency swap policy by the Governor of Central Bank of Nigeria, saying the devastating effects on the masses is frustrating.

 

The House resolved, calling on the CBN Governor to extend the deadline to June, 2023 in support of the earlier prayers by the National Assembly.

 

Moving the motion on the floor of the House, Hon. Rotimi Olowo who explained the challenges Nigerians had been facing since CBN Governor came up with the currency swap, said, the policy had further worsened the living condition of the masses.

 

According to him, the policy is anti-masses, adding that most entrepreneurs, SMEs, market women who are illiterates are more prominent in the economy of the country. The POS which has offered employment to the teeming youths has been destroyed by the policy.

 

He argued that the IT infrastructure in Nigeria is nothing to write home about. “Inasmuch as we appreciate the rationale behind the policy which is capable of curbing corruption, the negative effect of the policy on the masses is frustrating. The only beneficiary of the policy is the elites,” he said.

 

Other  members who supported the motion are Hons Bisi Yusuff, Makinde, Meiranda, Oluwa, Kasunmu, Idumogu, Akande, and Setonji among others, lamenting that the policy put together by the CBN Governor is not only frustrating but causing more pains than gains on the masses.

 

According to them, “Banks are selling the new naira notes to the highest bidders and they are making life miserable for the average Nigerians.

 

“We are angry because masses are directly affected by this policy. This is not the right time for this kind of policy and it is targeted at some people. It should  vehemently be rejected.

 

“The present situation in the country is demoralizing. This policy is affecting everybody. People are fighting at the ATM points just to get their monies. The policy is alien to us. There are some communities that do not have banking system. There are some communities that do not have internet facility. Some do not even have mobile phones. How can this policy work?”

 

The Speaker, Rt Hon Mudashiru Obasa commended his colleagues for their forthrightness and approach to issues concerning the masses.

 

“Our concern is the pain, anger and frustration which the policy has brought.

 

“The intention of the policy has been defeated. Before embarking on the policy, there should have been engagement and consultation with the people.

 

” We commend the National Assembly that intervened on the matter but we want to say that the 10-days extension will not be enough. We are calling on the  National Assembly  to ensure that the deadline is extended till June, 2023″, he said.

 

.10-day not feasible, NYCN begs CBN for 3-month redemption

 

 

Similarly, the National Youth Council of Nigeria (NYCN), South West zone on Tuesday urged the Governor of Central Bank of Nigeria (CBN), Godwin Emefiele to extend the deadline for the old notes before putting a stop in its circulation, noting citizens could no longer be subjected to torture in the name of currency redesign

 

The Vice President, NYCN SW, Comrade Amosu Tomi made the appeal during a press conference in Oshodi, Lagos, saying the 10-day deadline extension could only be visible if the new currencies were widely circulated.

 

While applauding the policy of the Central Bank of Nigeria to change the face of the major currecy, Tomi enjoined the CBN to be diligent in the implementation and learn from other countries that have tried the same policy.

 

He added, “The economy of the country is hanging in the balance as the new currency is yet to circulate. Fight and long queues are seen at the ATMs, and customers go through hardship to withdraw their own money.

 

“The CBN  should desist from being unprofessional with such sensitive policy the citizens can no longer be subjected to torture in the name of currency redesign. The 10-day deadline extension can only be visible if the new currencies are widely circulated.

 

“As at today, banks still dispense old note else, we doubt the state of the economy. We call on the Central Bank of Nigeria to the fact that they are serviing Nigerians, and Nigeria Youth cumulates the largest banking population, therefore, We request the central Bank plan for banks to continue to redeem the old notes for their face value minimum of three months.

 

Speaking on an alleged plan to scuttle forthcoming elections, the Vice President said, “We declare war on all retrogressive agents plotting to sabotage the successful conduct of the 2023 general election through any guise. We repose confidence in the Mahmood Yakubu Led INEC however enjoin the commission to tighten up the loose end as the new development in the Osun tribunal exposes how the BVAs are being bypassed. The vote of the common man must count.

 

“We call all Nigeria Youths to mobilize actively participate in the coming election, our vote is our power, and our voice must be heard loudly at the poll.”

 

He however commended  the efforts of security agencies to combat insecurity bedevilling the countt. He added they need to do more in assuring Nigerians that the election will be safe for all to participate.

 

“The votes of every common man must count and should not be subdued by security challenges. Criminals have dared our institution several times and tested our security architecture with commendable resistance. We demand continuous offensive security operation in all concerned communities to sustain confidence of Nigerians as we prepare for the 2023 general election.”