New naira: Pressure increases for extension of January 31 deadline

Following the comment of the All Progressives Congress (APC) presidential candidate, Asiwaju Bola Tinubu on the new naira notes, prominent Nigerians, among them traditional rulers, elder statesmen, businessmen and academics, are mounting pressure on the Federal Government to prevail on the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, to extend the January 31st deadline for the exchange of redesigned old notes with new ones.

Some of the prominent Nigerians are said to be uncomfortable with the timeline for the mopping up of old naira notes of N1, 000, N500 and N200.

Tinubu,while campaigning  in Abeokuta,Ogun State,last Wednesday,lamented  the scarcity of the new notes.

He also decried the lingering fuel scarcity in the country even though the government said there was no increase in the pump price of fuel ,while the NNPCL said there  was enough to last three months.

Tinubu blamed fifth columnists in the government for both problems,saying  that their motive is to embarrass Buhari and scuttle the forthcoming general elections.

However, the Presidency yesterday said it was weighing options including a number of initiatives by the Central Bank of Nigeria and all commercial banks to speed up the distribution of the new notes.

Investigation by our correspondent revealed that although the presidency claimed that the policy was targeted at currency hoarders, counterfeiters and couriers of illicit funds, Buhari was surprised at the pressure from influential Nigerians.

Most of the influential Nigerians lamented the cash squeeze occasioned by the CBN measure, the untold hardship on the poor, the likely paralysis of the economy and a possible social unrest if the deadline is not extended.

A top source said: “Powerful and influential Nigerians have mounted pressure on the government to compel the CBN to extend the January 31 deadline for the old naira notes to cease to be a legal tender.

“Among those who have made their positions known to the government and called for extension of the deadline are top Emirs, royal fathers, spiritual leaders and elder statesmen.

“Their concern is the serious consequences the CBN stance will have on the economy and the attendant loss of goodwill by the government.

“Some of them were worried that there was anxiety over the scarcity of the new notes which may lead to protests and strikes against the government.

“They said as at Friday, many banks were still dispensing the old notes. To complicate matters, many traders and departmental stores were rejecting the old notes.”

Findings revealed that all those who have made representations to the government sought gradual timelines for the replacement of the old notes with new ones in line with global practices.

A source added: “In the UK, for instance, it took the country over one year when it changed £20 and £50 denominations for the old ones to cease to be legal tender.

“The measure was introduced in 2020 with September 2022 given as deadline.

“Even after the deadline, those still with the old notes, who had accounts in the UK, could still deposit them in their accounts.

“The UK has a population of less than 70 million compared to Nigeria’s population of over 200 million, yet the CBN is giving 90 days for the old naira notes to be out of circulation.”

An influential source, who spoke in confidence, said: “Since Tinubu criticised the execution of the new naira policy, attributing the shortage of the new notes to saboteurs who are out to blackmail Buhari and scuttle the elections, many Nigerians have reflected on the policy and conveyed their opinions to the government.

“They found merit in Tinubu’s comments on the new notes, with some drawing from the experience of some advanced countries.

“Like Tinubu, those who have made their views known to the government are worried about the scarcity of the new notes, the hardship it has caused and the untoward effects it will have on the economy.”

According to government sources yesterday, the presidency might “likely consider an extension and the CBN will be asked to take a critical look at the policy.”

A statement by the Senior Special Assistant to the President (Media & Publicity), Mallam Garba Shehu, said the CBN was considering initiatives to forestall cash squeeze and chaos.

The statement said: “President Muhammadu Buhari, Saturday assured that government will ensure that citizens are unharmed in their businesses and no disruption is caused to the entire supply chain arising from the currency swap due to end shortly.

“Reacting to reports of long queues of people waiting for hours for their turn to deposit old notes and get new ones, triggering public anger and opposition’s criticism, President Buhari reiterated that the currency changes were aimed at people hoarding illicit funds and not the common man, and that it had become necessary to prevent counterfeits, corruption and terrorist funding. This, he assured, will stabilise and strengthen the economy.

“While taking note that the poorest section of society is facing hardship as they often keep hard cash at home for various expenses, President Buhari gave strong assurances that the government will not leave them to their own fate.

“He reiterated that a number of initiatives by the Central Bank of Nigeria and all commercial banks are underway to speed up distribution of the new notes and do all that is necessary to forestall cash squeeze and chaos.”

The CBN insisted, in a fresh tweet yesterday, that there would be no extension of the deadline.

Nigerians in their thousands have continued to besiege ATM points in different parts of the country to collect the new naira notes.

Others have been going to the banking halls to deposit their old notes.

The banks were opened yesterday to receive the old notes from depositors and are expected to also open for the same purpose today.

Ganduje writes Buhari, seeks postponement of planned Kano visit

Following the hardship being experienced by most Nigerians in accessing the new naira notes, the Kano State Government has written a letter to Buhari, asking him to postpone his planned visit to the state.

Governor Ganduje himself broke the news to scholars, legislators, political leaders and business community in the state during an interactive session at Government House, Kano on Friday.

He said the move was to forestall any unforeseen circumstance.

“As we are waiting for this important visit, we found ourselves in this situation, which puts citizens into untold hardship. For security purposes, we wrote to the Presidency that President Muhammadu Buhari’s visit to Kano be postponed,” the governor said.

He added: “We got an acknowledgement copy of the letter. People are really suffering because of this policy.”

He stressed that given Kano’s position as a commercial hub, “our voice must be heard in all nooks and crannies. We are a commercial hub. As such our position must be loud and clear.”

NBA: Why CBN must redeem old notes after Jan 31

The Nigerian Bar Association (NBA) yesterday waded into the controversy over the deadline for the naira swap, saying the CBN was under statutory obligation to redeem the old N200, N500, and N1,000 bank notes after the January 31 deadline.

“The law is clear on this issue,” NBA President Yakubu Maikyau (SAN) said in a letter to Emefiele.

The National Publicity Secretary of the association, Akorede Lawal, in a statement said the NBA also appealed for the urgent review of the demonetisation policy of the CBN.

His words: “While acknowledging that the policy is laudable as it has the potential to stem corruption, votes buying and other criminal activities, the NBA President noted that ‘the necessary logistical, infrastructural and manpower support required for the successful implementation of the policy are in short supply and should be greatly improved upon if they are to be leveraged for full implementation of the policy with minimal loss or economic hardship.’

“In the letter, the NBA President expressed the telling concerns that there is no information in the public domain as to what would happen to the old currency in possession of Nigerians, by or after the 31 January 2023, even as the law is clear on this issue. Quoting the provisions of Section 20 (3) of the CBN Act which provides that

notwithstanding Sub-sections (1) and (2) of this section, the Bank shall have power, if directed to do so by the President and after giving reasonable notice in that behalf, to call in any of its notes or coins on payment of the face value thereof and any note or coin with respect to which a notice has been given under this Sub-section, shall, on the expiration of the notice, cease to be legal tender, but, subject to section 22 of this Act, shall be redeemed by the Bank upon demand.

“Mr. Maikyau noted that ‘any person who shall be in possession of the old notes which have ceased to be legal tender by 31 January 2023 is at liberty to approach the CBN and demand the redemption of the notes and the CBN is under statutory obligation to redeem the notes.

“In view of the dearth of information in this regard, the NBA President added that ‘our recommendation, on this issue is that in addition to educating Nigerians on demonetisation itself, a campaign on what happens to old bank notes after 31 January should be launched so as to adequately inform the public on what to do and prevent or reverse the rising panic or agitations caused by concerns about the inability of Nigerians to swap their old notes for the new notes by 31 January.’”

The NBA President also visited Finance, Budget and National Planning Minister Zainab Ahmed on Friday and told her about the concerns of Nigerians over the demonetisation policy of the CBN, particularly in view of the scarcity of the new notes and the difficulty in swapping the old notes.

The NBA President informed the Minister that he directed the chairmen of the 128 branches of the NBA to survey and assess the impact of the policy on Nigerians in their respective jurisdictions and the aggregate of report thus far indicated that banking facilities are being overstretched and citizens are uncertain about the policy.

Mr. Maikyau noted that the worst hit are the under-privileged citizens whose life asset may not be up to N10,000 and who do not have access to the new notes and may therefore be denied of their hard earned money in the old naira notes.

The NBA President recalled that the Government ought to avoid the repeat of the harsh experiences of Nigerians in 1984 when a similar demonetization policy reportedly claimed the life of a trader who committed suicide because he was stranded with about NGN 200,000 of the old notes.

Maikyau said: “President Buhari may have been wrongly advised on the policy because by the provisions of the CBN Act the power of the CBN to call in any of its notes or coins otherwise described as demonetization, can only become operational upon the directive of the President after giving reasonable notice for the recall.

According to him, from the clear wording of the section, these two conditions must coexist before the power to call any of the notes or coins by the CBN can crystalises.

He wondered whether there was “a directive of the President? And where there was one, could it be said that the notice, given the prevailing circumstances, was reasonable?”

The NBA President added that while the CBN announced the policy in October 2022, citizens were given only 45 days to swap the naira notes, since the new naira notes only became available from December 15, 2022.

Mr. Maikyau noted that when a similar policy was introduced in an advanced economy as United Kingdom’s, the government had announced a date for demonetization 18 months in advance.

In her response, the minister said government was aware of the concerns over the policy and that the ministry would reach out to the CBN in a bid to consider revisiting the January 31 terminal date of the demonetization policy.

ACF tells Buhari, CBN to extend deadline immediately 

The Arewa Consultative Forum (ACF) added its voice to those calling for the extension of the Tuesday deadline.

Secretary-General of the forum, Murtala Aliyu, said yesterday that government must be sensitive to the plight of the citizens to safeguard their interests in all areas, as ordinary people, especially in the North, would lose their hard-earned money should government insist on the January 31st deadline.

The ACF also pointed out that insinuations by some political actors that the exercise was designed deliberately to sabotage the ongoing democratic process should not be allowed to be proven right.

It therefore commended the National Assembly for its intervention by calling to order what it described as the arrogance and insensitivity being displayed by the leadership of the Central Bank.

It said: “As the dateline for the exchange expires this coming Tuesday, we are afraid that majority of our people in the rural areas are unable to change their old currencies for the new ones. This is because even in the urban centres, the new notes are scarce.

“Also where the CBN made some arrangements to facilitate such, the exercise is being challenged by numerous factors, such as lack of adequate access to bank services on the part of the people, cumbersome exchange procedure, etc. This has subjected innocent people to hardship, uncertainty and anxiety.

“We are of the strong belief that ordinary people, especially in the North, will lose their hard earned money through no fault of theirs. Government must be sensitive to the plight of the citizens to safeguard their interests in all areas.

“Insinuations by some political actors that the exercise is designed deliberately to fail or cause chaos to sabotage the ongoing democratic process should not be allowed to be proven.

“Persons who lose their wealth through uncoordinated Government policy or actions are likely to assume they have been let down by the said Government.

“We appreciate the efforts by the National Assembly to intervene and call to order the arrogance and insensitivity being displayed by the leadership of the Central Bank.

“Arewa Consultative Forum (ACF) strongly calls on the President and the CBN to as a matter of urgency extend the expiration date of the exercise and improve on the arrangements so as to accommodate everyone with genuine cases,” ACF said.

 NANS also kicks against Jan 31 deadline

The National Association of Nigerian Students (NANS) similarly asked the Central Bank yesterday to extend the deadline.

National Vice President (External Affairs) of the association, Akinteye Afeez, said the deadline has made life more difficult for Nigerian students.

He added that some banks in school environment still give out the old naira notes to students with the deadline only a few days away.

He said: “It is of a fact that it’s not been long that ASUU called off the industrial strike that wasted our time and this coincided with the admission of new students into various institutions by JAMB and managements of various institutions all over Nigeria.

“This has made it paramount for registrations to be in progress and several financial transactions will be going on concurrently in various institutions across the nation.

“As at January 27, 2023, banking and other financial institutions are still struggling to cope with the rush by citizens to change their old currencies to new notes.

“Banks and POS outlets are struggling with the shortage of the redesigned new naira notes ahead of the CBN deadline, consequently making it difficult for them to comply with the CBN directives as regards availability of the new notes for customers.

“The shortage of new notes is creating serious panic that may snowball into something tragic if not put to check on time.

“Somewhere in Abraka, Delta State today, some students of Delta State University who went for currency swap were locked out of the bank with the claim that some staff of the bank are working on some swapping and it’s not their turn yet. They eventually couldn’t do the swapping.

“As at today, many stores have started to reject the old currency with the fear that they may not be able to swap on Monday due to the rush that comes with Mondays and end-of-month financial reports collations in banks.

“The questions now are: 1. What becomes of the Nigerian students on Monday when all the old notes we have with us refuse to serve as a legal tender if by now some banks still load their ATMs with old naira notes?

“What will happen when the Nigerian students become stranded at several junctions and circumstances because we have our money but has been condemned by our government without adequate remedy to curb such?

“What will happen when many of our students are unable to complete their school registrations due to this financial gridlock that is doing us more harm than good at the moment?

“The basic point is that the policy is a great one but the timing is wrong for the populace and something must be done urgently to salvage this ugly situation.

“The Nigerian students, as a major stakeholder in the scheme of things in Nigeria, will never fold our hands and watch this country go in shambles.

“This is why we are appealing to the CBN governor and other related stakeholders to look beyond the election and consider the impact of this policy on the Nigerian students and other citizens of Nigeria.”

Emefiele will bury Nigeria if not sacked —Arewa group

Arewa Youth for Development and National Unity called for the immediate sack of Emefiele over his handling of the naira redesign policy, which it claimed the CBN governor has politicised.

Addressing reporters in Kaduna yesterday, the National Coordinator of the Group, Conrade Hamza Muhammed Haruna, and the Director of Public Affairs, Isa Muhammed, described the CBN’s intransigence on the January 31st deadline as insane.

The group said a large population of Nigerians, particularly in the north and especially in rural areas, who are operating outside the banking system, would be broken by the policy.

“As we speak, this particular class of citizens who daily conduct their businesses in cash in the countryside and rural markets, are going through a grueling experience, waiting hours on end to bank their cash.

“In the rare chance they bank their cash, their nightmare begins all over again, for, accessing the new notes is another uphill task exacting the same degree of difficulty as in saving their money,” it said.

It urged the Federal Government to borrow a leaf from the United Kingdom and allow the new naira notes to be in operation concurrently with the old notes until they are mopped up from circulation by the apex bank.

CBN, commercial banks engage 200 cash swap agents in Jigawa

The CBN and the commercial banks have engaged over 200 agents in Jigawa State for the ongoing naira swap in an attempt to meet the CBN deadline of 31st of this month.

The CBN Director of Human Resources, Hajiya Amina Habib, told reporters in Dutse, the state capital, that the apex bank was also conducting massive sensitization nationwide on the naira redesign.

She expressed satisfaction at the co-operation given the CBN by stakeholders in the state so far.

Don’t add to sufferings – Badejo tells CBN

The Bishop of Catholic Diocese of Oyo, the Most Rev. Emmanuel Badejo, asked the Federal Government not to allow naira notes redesign to cause more hardship for the masses.

Badejo made the call in a statement yesterday in Ibadan.

He said that governance and policies must have a human face.

The cleric said that scarcity of the new naira notes would inflict suffering on Nigerians.

According to him, many citizens are depositing their old naira notes without any guarantee of getting the new notes.

Badejo said that Central Bank of Nigeria’s insistence on January 31 deadline for turning in old notes would  only be justifiable if it had done everything necessary to make new notes available to the largest percentage of Nigerians.

“Why should the general public suffer?

“The story is even more dire in large swathes of the country where there is no banking service whatsoever within kilometres. Are those living there not Nigerians too?

“The whole scenario is complicated by the paralysing fuel scarcity which has now raised the price of petrol to N400 or more per litre in some places.

“All these are coming on top of skyrocketing prices of goods and services, sending the anger and frustration of struggling masses through the roof, with the 2023 General Elections only weeks away,” he said.

He added that the Nigerian government and its officials must react quickly to the current hard times.

“If the monetary policy is hurting the same people which it is intended to serve, why can’t some modification be made to its timing and execution?” he asked.

He said that government policies and actions should be targeted at making life better for the masses.

“Therefore, in executing even the best and most urgent policies, the people’s interest must be at the centre,” Badejo said.

Source- The Nation