Naira swap: Group backs CBN on currency redesign, urges Nigerians to be patient

OBIORA IFOH, Abuja ,BLESSING AKOROWOSI, Osogbo, IBRAHIM QUADRI, Lagos,

 

A civil society organisation, the Leadership Orientation and Basic Rights Advocacy Centre (LOBRAC), on Monday, said the currency redesign policy by the Central Bank of Nigeria (CBN) would stabilise the nation’s economy.

Mr. Stanley Okafor, President, LOBRAC, made the assertion at a sensitisation and advocacy briefing on the current policy of the CBN, in Awka.

Okafor said that the CBN’s demonetisation policy was innovative, timely and in line with the mandates of the CBN Act of 2007.

He said that the CBN Act mandated the institution to operate independently and in line with the objective of promoting stability and continuity in economic management.

“Section 17 and 20 (3) of the CBN Act says that the apex bank determines issuance of currency notes and has power, if directed by the President, to call in any of its notes or coin.

“So, the CBN has not done anything wrong by introducing this policy. It is for the public good because it will drain excess liquidity from the system, strengthen the value of the naira and stabilise our economy.

“The policy will control worsening incidents of criminality, banditry and ransom-taking that is contributing to stockpiling of our currency.

“Above all, the government is also interested in ensuring that the national and sub national elections is devoid of money influence by big pocket politicians,” he said.

Okafor said that the nature of demonetisation policy were short term discomforts, economic and financial shocks but had long term benefits.

According to him, within the long term, initial shocks are overcome and stable economic and financial regime resumes.

“Though, the current policy spelt immense hardship for ordinary Nigerians, we urge Nigerians to be patient, in the long run, we will enjoy the gains of the demonetisation policy.

“Nigeria is not the only country which has experienced demonetisation at short notice. India did it in Nov. 2016 even United Kingdom demonetised in 1971.

“As civil society, we want to educate our people on national issues such as this so that our ship of state does not capsize,” he said.

Also speaking, Dr Ken Ezeokoye, an Economist, said that the CBN policy was apt as there was high inflation and no money in the banks to give out loans.

“”This policy will help the CBN mop up the black money stocked up in houses and private vaults, ” he said

In his views, Mr. Franklin Asiegbu, Secretary, LOBRAC, said the pains, hardship and sufferings that comes with the currency redesign policy is only for a short while.

According to him, Nigerians need to understand that this is a transition period that will help eradicate inflation and stabilise the economy.

Also, With the cash crunch being experienced by Nigerians getting to an unbearable level, President Muhammadu Buhari and the embattled Central Bank of Nigeria (CBN) Governor, Godwin Emefiele again held a closed door meeting on Monday at Presidential Villa, Abuja.

 

Although details of the meeting have not been released, but it is believed that it may not be unconnected with the current scarcity of Naira notes in circulation as deposit banks and Point of Sales (POS) operators have ran out of the Nigeria currency.

 

The CBN Governor however declined to speak to State House Correspondents after the meeting with President Buhari as all efforts to make him talk to reporters proved abortive.

 

Today’s meeting between President Buhari and Emefiele at Presidential Villa is the third time both will meet privately since the Naira redesign policy plunged the country into the scarcity of the currency.

However, Residents of Osogbo, Osun State capital on Monday, lamented the rejection of old naira notes in some commercial banks.

 

It was gathered that an Ibadan Electricity Distribution Company, IBEDC office in Osogbo also refused to collect the old naira notes for payment of electricity bill.

 

This development angered residents, who have been bitten hard by the scarcity of the redesigned naira notes across the country.

 

Our correspondent reports that Polaris, Keystone and First banks rejected old naira notes at their deposit sections. Zenith Bank initially rejected the old notes but later accepted them after much pressure.

 

With this, more people gathered at the banks’ gates challenging the refusal of the old notes despite the Supreme Court ruling on the matter.

 

One of the Polaris bank customers, Taye Adesola said, “Market women and petty traders still accept these old notes due to the scarcity of the new notes. The new notes are yet to circulate, what do you want us to do?

 

“With the Supreme Court ruling, why should any bank reject the old notes. We get disappointed by the day with the happenings of the country. Can’t the federal government see that the masses are suffering from their selfish policies.”

 

One of the bank officials addressing the customers at the gate said the bank is yet to receive directive from the Central Bank of Nigeria, CBN to accept the old notes, hence the rejection.

 

It will be recalled that the Supreme Court ordered the apex bank not to end the use of old naira notes on February 10, 2023 as earlier declared by the CBN.

 

The court gave the order to temporarily cancel the CBN’s deadline to end the validity of the old N200, N500 and N1000 naira notes.

 

In another development, The National Youth Council of Nigeria (NYCN) Lagos State Chapter on Monday urged the Central Bank Governor, Mr. Godwin Emefiele to ensure adequate disbursement of cash to all commercial banks, saying any banks which failed to disburse naira notes to customers should be severely penalized.

 

The NYCN body also frowned against any protest capable of being hijacked by hoodlums and perpetrators of evils in order to avoid the repeat of the horrible experience during the EndSARs protest.

 

NYCN made the appeal during a Press Conference, held at the Youth House, Ikeja, Lagos, urging the youth not be negative tools in the hands of troublemakers.

 

The highpoints of the Conference included, calling for all-inclusive government policies and advised the federal government and CBN on the need to disburse new naira notes to all banks as soon as possible.

 

It also charged the Independent National Electoral Commission (INEC) to ensure a free, fair and credible election.

 

The group also frowned at the scarcity of fuel and fuel price hike and implored youth to be ambassadors of positive change by shunning violence in the general elections.

 

The statement to this effects which was read by the NYCN, Lagos chapter, Comrade Biliamin Sulaimon-Oba was co-signed by the Secretary, Comrade Agbaje Abdulhakeem and the PRO, Comrade Abiodun Ajayi.

 

The statement read in part,  “In view of the current challenges facing the Nigerians which has led to series of protests and agitations from all sections of the country, the National Youth Council of Nigeria, NYCN Lagos State Chapter deems it fit to hold this press conference to make known to our government, the ripple effect of poor implementation of its policies.

 

“It is no gainsaying to mention that the nation is indeed in serious economic and social trauma. Our current situation is nothing but the adverse effect of not adequately considering the ordinary Nigerians and not taking into consideration the aftermath effects of every policy implementation.

 

“The federal government and its agencies must understand the fact that in order to have a more egalitarian society, there is a need to have an all-inclusive stakeholders’ involvement before policies are enforced.

 

Sulaimon-Oba urged the government  to sample the opinions of all concerned persons before implementing any policy, adding “We hereby urge the current government and incoming administrations at all tiers of government to take cognizance of this.

 

“The people should not be put in a state of discomfort and hardship, like the masses are currently facing. Hence, government policies should be people-oriented and not only beneficial to the political class at the detriment of the masses,” he stated.

 

He added, “The Central Bank Governor, Mr. Godwin Emefiele must, as a matter of urgency, ensure adequate disbursement of cash to all commercial banks and penalize severely any bank that fails to function appropriately.

 

“Also, the government must mandate the financial institutions to improve their technological infrastructures for ease of banking, as it is a key factor that will not only ease the burden of Nigerians but will as well strengthen the cashless policy of the Federal Government.

 

“The Lagos State leadership of the NYCN observed closely the series of protests in Ogun and Oyo states which led to loss of lives and property, hence, the Chapter decided to tow this path of Dialogue by airing our opinions in the media, especially due to the complexity of Lagos State.

 

“The NYCN, Lagos Chapter, frowns against any protest capable of being hijacked by hoodlums and perpetrators of evils in order to avoid the repeat of the horrible experience of the EndSARs protest.

 

“The people need to feel the presence of the government positively, There is a need to ensure that all hands are on deck, and hoarding of fuel by petrol marketers must stop.”