BY GODWIN OBI
Redesigning of N200, N500 and N1000 notes by the Central Bank of Nigeria(CBN), January 31 was announced as deadline for use of the old notes.
The deadline was, however, met with outrage from Nigerians, forcing the apex bank to extend to February 10 after which the notes would seize to be legal tender.
Governors of Kaduna, Kogi and Zamfara had approached the Supreme Court on February 3, requesting that the extension should be beyond February 10 as announced by the CBN. Following the suit, a seven-member panel of the apex court, led by John Okoro gave an order suspending the deadline till February 15, when the suit would be determined.
But NAN Correspondent, who went round some parts of the FCT yesterday to monitor use of the old notes, discovered they were being rejected in public places like fuel stations, market places and parks.
Mr Ndubuisi Ugwu, a commercial driver, seen announcing to passengers to board with new Naira notes, said he started rejecting the old notes because petrol stations had began rejecting them.
“I went to fuel my car at the station with the old notes and it was rejected. That is why I am insisting on passengers boarding with new notes.”
Mrs. Amina Shuaibu, a tomatoes seller at Karu Market, said she stopped collecting old notes since February 11.
“Although, I heard that the court gave order that we should continue using the old notes people are rejecting it in the market, that is why I am also rejecting it. I also heard that banks have equally stopped accepting the old notes but I do not know how true that is. There is so much confusion about the whole thing, so the best thing to do is not to collect it at all.”
Mr. Philip Ogedengbe, who was seen educating traders in the market, said almost everybody in the market was rejecting the old notes. He said he could not purchase any item because he went to the market with old notes.
Vivian Anibe, a student, said she went to buy bread but could not because the bread seller was not collecting old notes.
While traders and other small business owners have stopped accepting the old Naira notes across the country, Nigerians still in possession of the old notes are left stranded.
However, governors of the 36 states, have described the CBN Naira re-design and cash withdrawal restrictions policy as draconian as it infringes on rights of Nigerians to use legitimately earned income as they wish.
The NGF, in a acommuniqué signed by Aminu Tambuwal, its chairperson, the governors said the resulting naira note scarcity is causing hardship for Nigerians.
“The argument by the CBN for what it describes as the astronomical increase in the currency in circulation as the basis for this policy is not supported by its own data,” the communiqué reads.
“According to the CBN, the currency in circulation increased from N1.4 trillion in 2015 to N3.23 trillion in October 2022. The Bank appears not to have taken into consideration the increase in the size of the country’s nominal GDP over this period, the doubling of consumer prices, rising
population, and the impact of the humongous Ways & Means advances to the federal government by the Central Bank of Nigeria over this period.
“In the circumstances, it is safe to draw either of two conclusions – the CBN data may be incomplete or in fact, Nigerians may have done exceptionally well in the transition to a cashless economy.
“In addition, considering the sizeable informal sector in the nation, the amount of banknotes created in exchange so far by the CBN implies it vastly underestimated the economy’s
actual cash needs.
“The inability to use the new notes has had far-reaching economic effects, leading to the emergence of the Naira black market, severe food inflation, variable commodities prices based on the method of exchange, and long queues as well as crowds around Automated Teller Machines (ATMs) and banking halls across the country with individuals hoping to get a fraction of their money in new notes to meet their daily livelihood. The country runs the risk of a CBN-induced recession.”
While expressing “sympathies and support with Nigerians who are experiencing great difficulties” as a result of the maira redesign policy and attendant consequences, they said they are “determined to employ all legitimate channels to ease the situation. It has become necessary to make a distinction between the Central Bank of Nigeria (CBN) Naira redesign policy backed by Section 20 (3) of the CBN Act, 2007 and the aspirational policy of going cashless, both of which are mutually exclusive at this time.
“It is our considered view that what the CBN is at present pursuing is a currency confiscation programme, not the currency exchange policy envisaged under S20(3) of the CBN Act, 2007.
“Currency confiscation in the sense that the liquidity provided to the general public is grossly insufficient due to the restrictions placed on the amount that can be withdrawn regardless of the amount deposited.
“The current approach of the CBN raises concerns about the respect for the civil liberties and rights of Nigerians as it relates to their freedom to use legitimately earned income as they so wish.
“The Forum believes that to deploy a cashless policy and deepen digital transactions, the best practice around the world is to create a suite of incentives to attract customers; rather than a draconian approach as we have witnessed in the last three months.”
Ganduje shuts supermarket in Kano for rejecting old currencies
Governor of Kano State, Abdullahi Ganduje, has ordered the closure of Wellcare Supermarket over its refusal of old naira notes from customers.
Speaking to journalists after the closure, Baffa Agudi, chairperson of the state’s consumer protection council, said legal action will be taken against the supermarket.
He warned other marketers in Kano to be aware that the state government has not banned the use of old naira notes as legal tender.
He said any shop that is caught refusing the old naira notes will be dealt with decisively.
Responding to the closure, the management of the supermarket, in a letter to the governor, apologised for its action.
“We humbly plead that our business should be re-opened for deserving members of the public as we undertake to receive old notes as valid tender to when the state issues and otherwise directive. Please do accept our regards and sincere apologies.”
Stop punishing Nigerians, PDP tells APC
The Peoples Democratic Party (PDP), yesterday, asked leaders of the All Progressives Congress (APC) to stop the pains being expressed by Nigerians by releasing the billions of the new notes they had allegedly hoarded.
PDP, in a statement by its National Publicity Secretary, Debo Ologunagba, claimed APC leaders, who were involved in the hoarding of the new Naira notes are posturing as if they were concerned about the plight of Nigerians.
It noted that the redesign of the Naira and cash swap programme were policies of the APC government, which is totally in control of the production and circulation of the new notes.
The PDP noted that it was callous for APC leaders to continue to watch Nigerians spend nights at ATM stands, fight one another in bank halls and ATM centres for cash with millions stranded without money to take care of their daily needs.
“The PDP calls on Nigerians to hold the APC and its leaders directly responsible for the pain, economic hardship, social dislocation and psychological distress they are going through on account of APC induced cash scarcity in the country.
“The APC has again demonstrated that it is party of very cruel, insensitive and self-centered politicians who relish in inflicting pain, anguish and life-discounting situations on our citizens in the last seven and half years of the APC administration.
“The APC leaders having realized that they cannot win in the 2023 general elections, sabotaged the system and diverted the new Naira notes so as to create widespread social unrest to justify their plan to derail the elections and truncate our democracy.
“Our Party has been informed by some well-meaning APC members on how six APC State governors led by a particular infamous Governor of a prominent State in the North West region are coordinating the hoarding of new Naira notes for the vote buying scheme of the APC ahead of the February 25, 2023 Presidential election.
“Nigerians can recall that the APC was recently busted in the process of swapping the sum of N22.5 billion in old N1000 notes for new ones in Kano State for vote buying, in a deal wherein a substantial part of the old notes was allegedly conveyed to Lagos State for secret swapping with new notes.”
Tinubu seeks coexistence of old, new notes
Presidential candidate of the APC, Bola Ahmed Tinubu, has urged the CBN to allow new and old Naira notes to co-exist as legal tender for one year to ease the growing tension in the country.
In a statement he personally signed, Tinubu also advised the immediate suspension of associated charges on online transactions, bank transfers and payments through POS until the resolution of the current crisis.
“To bring immediate relief to our people, we urge the Central Bank to consider the following: following the advice of the Council of States, the CBN should announce that the old and new Naira notes (especially the non-withdrawn notes and coins) should co-exist as legal tender for the next 12 months to follow examples of countries that have successfully implemented similar monetary policy.
“This will immediately remove growing tension in the country, eliminate panic reactions by the populace and allow time to scale up infrastructural gaps around alternative payment options to cash.
“We advise the immediate suspension of associated charges on online transactions and bank transfers and payments via POS until the current crisis is fully resolved. This cost should be considered a roll-out expense by the CBN to incentivise the envisaged shift to alternative transaction channels; for both the financial services consuming public and those in charge of implementing the scale-up programme.
“Mobilise all money deposit banks, payment platforms to show clear commitment and timelines on expanding their infrastructure and support services.
“Bring in Fintech companies with capabilities into currency swap programme for the next 90 days to help decongest banking halls and ATM points where people line up for hours,” he suggested in the statement.
Offering further advise to the apex bank, the former Lagos State governor, said the CBN and other relevant MDA’s should form an Inter-Agency Action Committee for immediate oversight over the cash supply gaps from the Nigerian Security and Minting Company and deal with issues around capabilities and turn around time to meet the needs of the informal sector and unbanked people.
“Our task now is to restore hope in the country by implementing these steps to energise our people that we can do big things for a better future and shared prosperity. We can build upon this citizen-focused policy challenge to offer a template on how governance should work for the people,” the statement read.
Ekiti joins states suing FG, CBN over Naira crisis
Ekiti Government has applied to be joined as a co-plaintiff in a suit against the Federal Government at the Supreme Court on the Naira redesign policy and the deadline by the CBN for the swapping of old notes for new ones.
The governor’s media aide, Mr. Yinka Oyebode, in a statement in Ado-Ekiti, yesterday, said the application for joinder was filed on Friday at the Supreme Court by the state Attorney General and Commissioner for Justice, Mr. Dayo Apata, seeking three reliefs.
The statement said the suit, with the number SC/CV/162/2023, had Attorneys General of Kaduna State, Kogi State and Zamfara State as Plaintiffs, while the Attorney General of the Federation as the defendant. Kano and Niger states have also filed separate suits to stop the policy’s implementation.
The reliefs being sought by the Attorney General of Ekiti included leave of the court to join the applicants as a co-plaintiff
Some of the grounds of the application included acute shortage in the supply of Naira notes in the state since the announcement of the policy by the Federal Government through the CBN.
The applicant, Ekiti Government, declared that the directive of the Federal Government had affected the livelihood and inflicted excruciating pain and hardship on all Nigerians, including citizens of the state.
The state government equally averred that the directive of the Federal Government had adversely affected the revenue, levies and taxes acruable to the coffers of Ekiti Government as economic activities in the state were now paralysed.
He further averred that the directive of the Federal Government on the Naira redesign had also created palpable anxiety among the citizens of Ekiti.
Another ground was that Ekiti, as a federating state of Nigeria, therefore, had interest in the determination of the Originating Summons in the suit, earlier filed by the three states in the federation.
Ekiti Government said having common interest as other plaintiffs, and also in the outcome of the suit, sought the leave of the court to be joined as a co-plaintiff in order to be bound by the outcome of the suit.
It stated that no injustice or embarrassment would be occasioned to any of the parties on record, if joined, as a co-plaintiff to ventilate the grievances of Ekiti.
“The sole issue formulated for determination is whether the applicant has made a case for the court to favourably consider the application. This was supported by an argument that the court had always been of position that anyone whose presence is crucial and fundamental to a suit must be made a party to the proceedings.”
Police warns against attacks on ATM in Bayelsa
The Bayelsa State Police Command has uncovered plans by some elements to attack banks and automated teller machines (ATM) in Yenagoa, over the scarcity of Naira.
The scarcity of the old and new notes is biting hard in Bayelsa State with no ATM paying and many of the residents could not patronise the few Point of Sale (POS) because of the outrageous charges.
According to investigation, the Police which uncovered the plot to attack designated banks and ATMs have placed Police Divisions on red alert to forestall such attacks.
Commissioner of Police, Mr. Ben Nebolisa Okoro, has also directed beef –up of security around major banks in Yenagoa.
A statement from the command’s spokesman, Asinim Butswat, entitled Bayelsa Police Beef up Security at Banks and ATM Points’ stated that CP Okoro appealed to residents of the state to be calm in the face of the Naira scarcity challenges and warned miscreants to steer clear of the state to foment trouble.
“The Bayelsa State Police Command has beefed up security in Banks and ATM points in the State due to the scarcity of the new Naira notes.
“The Commissioner of Police Bayelsa State Command CP Ben Nebolisa Okolo has charged Divisional Police Officers, Tactical Commanders, and other operatives to closely monitor Banks and ATM points to forestall any breach of the peace.
“The Command understands the plight of the masses and we are hopeful that the new measures introduced by the CBN will improve the circulation of the currency in the coming days.
“Miscreants, under any guise, are hereby warned to desist from carrying out any unlawful assembly to unleash violence in the State, as the Command will not allow any person(s) or group of persons to truncate the relative peace being enjoyed in the State.
“The Command is appealing to members of the public to remain calm and go about their lawful and legitimate business as the command is poised to guarantee public safety and security.”
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