Category: Lead

ALL Progressives Congress (APC) presidential standard bearer Asiwaju Bola Ahmed Tinubu yesterday suggested a six-point solutions to the crisis triggered by Naira redesign and currency swap.

He urged the Central Bank of Nigeria (CBN) to allow the new and old Naira notes to co-exist as legal tenders for the next 12 months.

The eminent politician also called for the immediate suspension of associated charges on online transactions and bank transfers and payments via Point of Sales (POS) until the full resolution of the prevailing crisis.

In a statement titled: “Let us make the best of this moment”, Tinubu also enjoined the CBN to mobilise all banks payment platforms to show clear commitment and timelines on expanding their infrastructure and support services.

The presidential candidate noted that the past few weeks have been a challenging to Nigerians, especially Small and Medium Enterprises (SME), poor and vulnerable masses and those whose very survival depended on daily cash transactions.

Tinubu acknowledged that these categories of people and groups have felt the brunt of the combined problems of fuel and Naira scarcities.

Empathising with Nigerians, he said: “We feel the pains of our market women and artisans who have experienced low sales because customers do not have cash to make purchases.

“We hear the loud cries of farmers in rural areas and hinterlands who have been forced to sell their produce at much lower prices so they don’t lose out completely. We hear every Nigerian dealing with the consequences of the roll-out of the cash swap programme.”

On the persistence of scarcity due to supply limitations of the new notes, Tinubu said: “Although the naira scarcity has persisited, it is noteworthy that the fuel queues across the country have started easing out as a result of better supply to fuel stations.

“We are now confronted with how to bring quick, sustainable solution, and relief to Nigerians on the challenges still posed by the non-availability of new naira notes, so that social and economic activities can move on unimpeded and normalcy can immediately return to our financial services sector and overall productivity of our nation.”

Tinubu clarified that he, his running mate, Senator Kashim Shettima and the APC Campaign Council were not opposed to the CBN’s currency redesign and cashless policy.

He maintained that he was only concerned about the  disruptive implementation and hardship it has brought on Nigerians.

The former Lagos governor hailed the Council of State for its cogent advise that the old and new notes should co-exist as legal tenders.

He said: “In seeking a quick resolution, the National Council of State met on Friday, February 10, 2022 and advised the government and Central Bank in particular, to push more new naira notes into circulation and also allow for the old notes to remain a legal tender by ensuring supply gaps relative to infrastructural limitations are bridged by recirculating it to ameliorate the pains caused by the scarcity of new ones.

“We agree with the wisdom of the Council of States as a necessary starting point to begin redressing the unintended consequences of what would have otherwise been a good policy that required mainstream adoption.

“For the records, I and my running mate, Senator Kashim Shettima and our campaign council do not have anything against the CBN Naira redesign and cashless policy in principle. 

“We are, however, only concerned about its disruptive implementation and the hardship it has brought on the generality of our people who currently can’t access their hard-earned money to meet obligations and the attendant consequences on the informal sector, where majority operate.

“Despite the challenges and current difficulties, we are a country of resilient, bold and courageous people who don’t succumb to hard times. We have always overcome our most difficult times and come out better as a people and a nation. This time will not be different. We will make lemonade out of our current lemons.”

To bring immediate relief to Nigerians, Tinubu urged the CBN to consider the following:

•The CBN should announce that the old and new Naira notes (especially the non-withdrawn notes and coins) will 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. 

•The Central Bank 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. 

•The CBN, National Orientation Agency (NOA) and Ministry of Information, states and local government areas, with their relevant organs in both the public and private sectors, should commence a major public enlightenment and sensitisation campaign to further educate and empower our people on the new naira and cashless policy for better understanding and mainstream adoption.

“As leaders, our commitment to our country everyday must be on how to make life better for our people and we are called upon not to waste the opportunity the moment presents to us to ramp up capacity and capability to serve 200 million Nigerians, leaving no one behind and ultimately improve the living conditions of every single Nigerian.

“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 Central Bank of Nigeria (CBN) may pump in today more new naira notes into circulation through the banks, The Nation learnt yesterday.

About N500 billion of the new notes have been injected into circulation since December 15, last year.

Today’s plan by the apex plan to pump more cash, close  to N1 trillion will come into circulation, a CBN board member confirmed to The Nation yesterday.

The board member who pleaded for anonymity said: “The CBN will do the needful to ensure that innocent Nigerians’ pains are eliminated. To this end, more new naira notes will be allocated to the banks from Monday for disbursing to the public.”

He assured that “the mint has adequate capacity to print the required volume of new naira notes”.

Our source explained that “the volume printed must be related to what the CBN adjudges to be optimal for the economy.

“What this means is that the CBN is being careful not to flood the system with naira notes thus creating another currency control problems for it with attendant inflationary pressures”.

The CBN board member also confirmed that the apex bank will abide by the Supreme Court’s decision to pull the brake on enforcing a deadline on the deposit of old Naira notes until February 15 when the Supreme Court will make hear the suit instituted by three governors.

“Whe cannot really speculate on extension or no extension as the issue is before the highest court in the land,” the apex bank’s board member said.

Regarding the advice of the Council of State to the CBN to either make more new notes available or re-circulate the old banknotes alongside the existing new notes, he told The Nation that “the advice of the Council of States is well-meaning. The Council is rightly concerned about the current challenges of the naira redesign implementation caused by selfish and sadistic individuals/organisations.”

Another senior CBN management official also revealed some developments to The Nation relating to the ongoing currency crisis.

The official disclosed: “The CBN has discovered that some powerful individuals used their cronies to open new bank accounts in order to withdraw new notes.

“The Economic and Financial Crimes Commission (EFCC) will soon go after them to see if they followed the Know Your Customer (KYC) protocol.”

He added that most commercial banks where deliberately keeping the new notes for their priority customers.

He said: “The banks are loyal to their priority customers; that’s why they reserve some new notes for them. They do not want to lose their high net worth customers. The apex bank has increased the volume of cash it released to the banks.” 

According to him, the commercial banks have “not been returning old notes back to the CBN as expected”.

The CBN, the official noted, has also discovered that citizens were holding on to the new notes.

“People, are not depositing new notes but holding on to them” he said.

THROUGH their umbrella body  – Nigeria Governors’ Forum (NGF), the 36 governors have asked the Federal Government and the Central Bank of Nigeria (CBN) to urgently comply with last week’ ruling by the Supreme Court and the advice by the Council of State on cash swap policy before irreversible harm is done to the nation’s economy.

The governors expressed displeasure that despite the assurance by the Attorney-General of the Federation (AGF) and Minister of Justice that the Federal Government would comply with the Supreme Court’s ruling, the situation has not changed for the better.

According to the governors, Nigerians have been subjected to hardship following the scarcity of cash created by the implementation of Naira redesign policy.

The governors said in a communique: “While we acknowledge the submission of the Attorney-General of the Federation that the Federal Government will comply with the ruling of the Supreme Court, which calls for the halting of CBN’s plan to end the use of the old currency notes, we are yet to observe changes in the financial system.

“Consequently, we call on the Federal Government and the CBN to respect the rule of law and listen to the voice of reason expressed by Nigerians and several other stakeholders including the Council of State, before the damage to our economy becomes too great to fix by the next administration.

“Members rose from the meeting agreeing to direct their attorneys-general to review the suit at the Supreme Court with a view to consolidating the legal reliefs pursued by states.”

These formed part of the resolutions contained in a communiqué issued at the end the meeting of members of the Nigeria Governors’ Forum (NGF) held on February 11.

The communique, signed by the NGF Chairman and Governor of Sokoto State, Aminu Tambuwal, was made available to reporters yesterday.

The governors accused the CBN of implementing currency confiscation programme and not the currency exchange policy envisaged under Section 20(3) of the bank’s Act.

They faulted the manner the CBN was going about its implementation of the cashless policy, describing it as draconian.

They said: “We express our sympathies and support with Nigerians who are experiencing great difficulties under the current CBN Naira re-design and cash withdrawal restrictions policy.

“We feel your pain and we are determined to employ all legitimate channels to ease the situation.

“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.

“It has become necessary to make a distinction between the 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.

“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. According to the CBN, the currency in circulation increased from N1.4 trillion in 2015 to N3.23 trillion in October 2022.

“The bank (CBN) 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 Federal Government and the Central Bank of Nigeria (CBN) are keeping Nigerians waiting on the status of the old N1, 000, N500 and N200 notes.

Despite the Supreme Court order extending the old notes phaseout deadline, as well as advice from the International Monetary Fund (IMF) and the World Bank, the government and the apex bank maintained studied silence as of yesterday.

The Council of State, senior lawyers and economic experts had also advised that the old and new notes be allowed to co-exist as legal tenders.

As a result of the lack of direction from the government, Nigerians have started rejecting the old notes.

Malls, restaurants, supermarkets, markets, petrol stations and transporters all demanded new notes at the weekend in many parts of the country.

It was, however, learnt yesterday that the CBN was planning to inject more new notes through the banks.

A source told The Nation that the apex bank has scheduled a meeting for today to review the Supreme Court ruling that shifted the February 10 deadline.

The Supreme Court, following a suit by Kaduna, Kogi and Zamfara, through their attorneys-general, asked the government to maintain the status quo.

It fixed the hearing in the substantive suit for Wednesday.

Old notes rejected

Most churches in Abia State asked their members not to use old notes for offerings and tithes.

In Ebonyi, residents started rejecting the old notes last Friday.

PoS operators charged N1500 for every N5,000.

A resident, Sharon Akpa, said: “On Saturday, I didn’t have transport money after work.

“A PoS operator told me to pay N1,500 for N5000. I was still bargaining when the money she had was exhausted before me.

“She gave me N1,000 for N200 because she knew me. People lined up to withdraw not minding the exorbitant charges.”

In Katina, traders, commercial cyclists and petrol stations rejected the old notes.

A popular retail shop, Greenhouse, announced that old notes would no longer be collected.

Akwa Ibom residents were unable to spend their old notes. Traders, petrol stations and transporters rejected them.

At the Urua Nka market in Eket, many traders preferred not to sell their goods than accept old notes.

A fish seller, Mrs. Idaresit Nyong, said: “The government said February 10 was the deadline for old notes. I prefer to pack my fish back home instead of collecting the old Naira.”

It was the same situation in Ado-Ekiti, the Ekiti State capital, as traders, food vendors and commercial motorists rejected the old notes.

A foodstuff seller at the Okesa market, Mrs Bunmi Oguntuase, said her suppliers refused to collect old notes from her.

In Anambra, businesses also rejected the old notes.

“Nobody can trust this government again. I better lose customers than keep collecting money that would be rejected after,” a customer, Ogochukwu Ibe, said.

In Osun State, malls, markets and other businesses rejected the old notes.

In Imo State, passengers were stranded as transporters rejected old notes.

In Enugu, a civil servant, Emeka Nweze, said: “I went to Mayor Market on Agbani Road to buy foodstuff with old notes, but my regular seller rejected them.”

A bus driver, Uchenna Nwobodo, said he stopped collecting old notes because petrol stations were rejecting them.

Another resident, Clara Ugwu, claimed that her bank refused to accept a deposit of old notes on Friday.

Traders at the Wurukum, Wadata and International markets, all in Makurdi, Benue State, insisted on new notes.

Commercial motorcycle riders conveyed only passengers with new notes.

In Ibadan and other cities in Oyo State, supermarkets and restaurants rejected old notes.

Those who opted for digital payments did not find it easy due to poor networks.

Like in Oyo State, many traders, stores and tricycle operators in Plateau turned down the old notes from customers.

At the popular FoodCo Supermarket, where The Nation correspondent bought some items and tried paying with old notes, he was told by the cashier that: “We have been instructed not to collect them.”

The experience was the same at the popular Kilimanjaro restaurant.

A cashier there said they got a directive from their head office to receive only new notes.

Ondo, Rivers, Delta, Edo, Kaduna residents accept old notes

At markets, stores, eateries and motor parks in Ondo, Rivers, Delta, Edo and Kaduna states, traders and transporters accepted the old notes without complaint.

A lawyer, David Ebriku, who operates a restaurant in the Adegbemike area, said he was accepting the old notes because of the Supreme Court ruling.

In Rivers State, it was not only traders and commercial drivers that accepted the old notes, churches also did.

In fact, the notes accounted for a higher percentage of offering collections during yesterday’s service.

No trader in major markets and residential areas of Warri and Effurun in Delta State rejected the old notes.

Commercial vehicle operators also did not turn down the old currency.

An attendant at one of the stations on Ekenwan Road, Benin, the Edo capital, said their director told them to collect the old notes.

A transporter, Kelvin Kingsley, who plies Sapele Road, Benin, said he had no

choice than to collect old notes since new notes were not available.

At the New Benin market,  a trader, Ijeoma Chukwu, said many of them  were happily accepting old notes so that they “won’t record losses and die of hunger.”

At the Kaduna Central Market in Kaduna State, traders complied with Governor Nasir El-Rufai’s advice not to reject the old notes.

Ganduje shuts supermarket

Kano State Governor Abdullahi Ganduje shut down a popular supermarket for not accepting old notes.

Kano is one of the states that sued the Federal Government over the implementation of the CBN cashless policy.

Baffa Agudi, the chairperson of the state’s Consumer Protection council, announced the closure of the store known as Wellcare Supermarket.

He added that legal action would be taken against the supermarket’s management.

Agudi also warned that any stores caught rejecting the old notes would be dealt with decisively.

However, the management of the supermarket apologised to Ganduje for its action. It pleaded with the governor to reopen the store.

The management explained in a letter to the governor that it took the decision because of the Federal Government’s “policy on the new naira notes.”

“We gave wrong instructions to our staff members that from the 10th day of February 2023, only the new approved naira notes are to be in circulation,” the letter read in part.

“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,” the letter added.

FCT market women decry low patronage

Market women in the Federal Capital Territory (FCT) said they were having low patronage due to poor circulation of new naira notes.

They said the naira scarcity had made some of them that hitherto did not have bank accounts to open one to enable them to receive transfers from buyers.

“When customers come, they complain that they do not have the cash to pay and ask if they can transfer.

“I do not have a bank account, so if they do not have the cash to pay me, they go somewhere else to try.

“That is how I have missed so many sales for two days. I wish I had a bank account,”  said one of the women, Ngozi Kalu, at the Garki International Modern Market.

Ekiti applies to join suit against Fed Govt

The Ekiti State Government has also applied to join Kaduna, Kogi and Zamfara states in their suit against the Federal Government on the implementation of the naira swap.

Ekiti, in a suit number: SC/CV/162/2023 filed last Friday and sighted by The Nation yesterday, is seeking three reliefs.

A Senior Advocate of Nigeria (SAN), Dayo Apata, instituted the case on behalf of the state government.

The three reliefs being sought by Ekiti State are: Leave of this honourable court to join the applicants as a co-plaintiff in this suit; an order of this court joining Attorney- General of Ekiti State as a co-plaintiff in this suit; and for such order or further orders that this honourable court may seem fit to make in this circumstance of this suit.”

Some of the grounds upon which the application was premised include an acute shortage in the supply of naira notes in the state since the announcement of the policy by the Federal Government through the CBN.

No going back on policy, CBN chief insists

CBN Controller in Benue State, John Itaha, insisted at the weekend that the cashless policy has come to stay.

Itaha, at a one-day programme on the e-Naira adoption and agent sensitisation in  Makurdi,  encouraged Nigerians to adopt to the new naira regime.

Police tighten security in Bayelsa banks

In Bayelsa State, the Police beefed  up security around banks and their Automatic Teller Machine (ATMs) terminals

The command’s spokesman, Asinim Butswat, in a statement yesterday, said the Commissioner of Police Ben  Okolo charged Divisional Police Officers (DPOs), Tactical Commanders (TCs) and other operatives to closely monitor Banks and ATM points to forestall any breach of the peace.

“The command will not allow any person (s) or group of persons to truncate the relative peace being enjoyed in the state,” the statement added.

Catholic bishops flay  cashless policy implementation

The Catholic Bishops’ Conference of Nigeria (CBCN) yesterday described the

implementation of the policy as a disaster.

It said: “The disastrous implementation of the CBN cash swap policy, which resulted in a cash crunch, has added to the ordeal, anger and frustration of the masses.

“On account of the hard-biting economic conditions, many of our brothers and sisters are pauperised and go to bed without food.”

The president, Most Rev. Lucius Iwejuru Ugorji, stated this at the opening

session of the 2023 First Plenary meeting of CBCN in Abuja.

While expressing sadness over the situation, Ugorji said it seemed that the Federal Government was overwhelmed by the current crisis and the insecurity in the country.

Group flays NOA

A support group of theAll Progressives Congress (APC), National Progressive Hub (NPH), accused the National

Orientation Agency (NOA) of failing in its responsibility to enlighten the public on the cashless policy.

It argued that if the agency had been alive to its functions, Nigerians would have been saved from the pains and confusion they are facing now.

APC PCC unit foresees food crisis

Also yesterday, the Agro Commodities Directorate of the APC PCC warned about the looming food crisis caused by the cash crunch.

It said farmers in rural areas were adversely affected by the policy.

A member of the directorate and National Coordinator, Special Projects, Rice

Farmers Association of Nigeria (RIFAN), Alhaji Shehu Muazu, told reporters: “Go to rural areas and see how producers of perishable goods are suffering because nobody is coming to buy.

“Once you harvest and you don’t sell in 24 hours, it spoils.

“Rural agriculture in Nigeria cannot survive without cash in the hands of our people.

More than 70 per cent of rural Nigeria cannot boast of power, stable telecoms and banking services.”

Secretary of the directorate, Retson Tedheke, said the naira redesign policy posed a great threat to food security.

“Farmers are already challenged with repaying government and CBN interventions. This will make a bad situation worse,” he said.

The National Insurance Commission (NAICOM) has said insurance companies would pay genuine claims arising from the naira scarcity.

Banks are taking stock of damages to affected branches and other losses incurred over naira and petrol scarcity protests.

Violent protests hit some states last week as youths and customers blocked some roads, set burnfires and vandalised some banks.

The situation also forced many banks to shut their doors against customers.

Commissioner for Insurance, Sunday Thomas, said the companies can settle all the claims that would emerge.

The Commissioner told our reporter that the insurance industry was always ready to help mitigate the effects of disasters and support economic recovery.

He said insurers have been making effort to restore claimants and beneficiaries quickly and reliably and would continue to do so.

Also speaking on the insurance implication of the ongoing cash and petrol crisis, the Managing Director, AIICO Insurance Plc, Tunde Fajemirokun, said most banks have different types of insurance covers.

He said the relevant policies in the current scenarios are fire and special perils, including riot strikes and civil commotion, money, and fidelity guarantee.

He, however, said only fire and special perils could be called in based on the risks and damages some banking institutions are presently experiencing.

He added that the cover has a malicious damage section which can be activated subject to the terms and conditions of the incepted policies.

The presidential candidate of the ruling All Progressives Congress (APC) Asiwaju Bola Ahmed Tinubu had refuted reports of taking a new wife.

He said the reports were “fake and groundless news”.

The presidential hopeful in a statement by his media aide, Tunde Rahman in Abuja on Sunday, said he has continued to enjoy a blissful marriage with his wife, Senator Oluremi Tinubu.

The statement reads: “We have seen fake news that has gone viral on social media purporting that the All Progressives Congress Presidential Candidate, Asíwájú Bola Ahmed Tinubu, is set to take a new wife.

“This is what it is: fake and groundless news.

“HE Asíwájú is enjoying his marriage to his wife, Senator Oluremi Tinubu, which is blessed with excellent children. He is not ready to take an additional wife, whether a Christian or a Muslim.”

The presidential flag bearer noted the intention of those peddling rumours of takinga new Muslim wife was not only to cause discord within his peaceful family but to also create disaffection within the Christian community.

The statement added: “Their intention has failed. It will not cut a die anywhere. We enjoin our people to completely disregard the unfounded news.

“Tinubu is at present focused on his campaign to emerge the president of this country come February 25, 2023, to rekindle the hope of our people in a better, stronger, more secure and prosperous Nigeria.

“Senator Oluremi Tinubu is also busy traversing the length and breadth of the country canvassing support for her husband.

“They will not be distracted by this baseless news.”

The nation’s 36 Governors have asked the Federal Government and the Central Bank of Nigeria (CBN) to urgently comply with last week’s ruling by the Supreme Court and the advice by the Council of State on cash swap policy before irreversible harm is done to the nation’s economy.

The Governors expressed displeasure at the hardship citizens were being subjected to, noting that despite the assurance by the Attorney General of the Federation (AGF) and Minister of Justice that the Fed Govt would comply with the Supreme Court’s ruling, the situation has not changed for the better.

“While we acknowledge the submission of the Attorney General of the Federation that the Federal Government will comply with the ruling of the Supreme Court, which calls for the halting of CBN’s plan to end the use of the old currency notes, we are yet to observe changes in the financial system.

“Consequently, we call on the Federal Government and the CBN to respect the rule of law and listen to the voice of reason expressed by Nigerians and several other stakeholders

including the Council of State, before the damage to our economy becomes too great to fix by the next administration.

“Members rose from the meeting agreeing to direct their Attorneys General to review the suit at the Supreme Court with a view to consolidating the legal reliefs pursued by states.”

These formed part of the resolutions contained in a communiqué issued at the end the meeting of members of the Nigeria Governors’ Forum (NGF) held on February 11.

The communique signed by the NGF’s Chairman and Governor of Sokoto State, Aminu Tambuwal, was made available on Sunday.

The governors accused the CBN of implementing currency confiscation

programme and not the currency exchange policy envisaged under Section 20(3) of the bank’s Act.

They faulted the manner the CBN was going about its implementation of the cashless policy, describing it as draconian.

They said: “We express our sympathies and support with Nigerians who are experiencing great

difficulties under the current CBN Naira re-design and cash withdrawal restrictions policy. 

“We feel your pain and we are determined to employ all legitimate channels to ease the situation.

“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.”

“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.

“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. According to the CBN, the currency in circulation increased from N1.4 trillion in 2015 to N3.23 trillion in

October 2022. 

“The bank (CBN) 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 Agro Commodities Directorate of the All Progressives Congress (APC) Presidential Campaign Council (PCC) has cried out over looming food security challenge occasioned by the cash crunch as a result of the Central Bank of Nigeria (CBN) naira swap policy.

The directorate also complained that farmers are dying as a result of the monetary policy, which is impacting negatively on those of them especially in the rural areas.

Addressing newsmen in Abuja on Sunday, a member of the directorate and National Coordinator, Special Projects, Rice Farmers Association of Nigeria RIFAN, Alhaji Shehu Muazu, complained that the naira redesign policy and its implementation are impoverishing rural farmers with many of them dying.

According to Muazu: “Go to rural areas and see how producers of perishable goods are suffering because nobody is coming to buy. Once you harvest and you don’t sell in 24 hours, it spoils.

“Sincerely, our farmers are dying and something urgent has to be done.”

He added: “Rural agriculture in Nigeria cannot survive without cash in the hands of our people. More than 70 per cent of rural Nigeria cannot boast of power, stable telecoms and banking services.

” The cashless policy and petrol scarcity are making rural Nigeria farmers and ordinary Nigerians suffer and become poorer after President Muhammadu Buhari made life so much better for rural farmers in eight years”.

Decrying the policy, the Secretary of the directorate, Hon. Retson Tedheke, said the policy is posing a great threat to Nigeria’s food security which he said is a challenge to cultural, economic and socio-political stability.

“Farmers are already challenged with repaying government and CBN interventions. This will make a bad situation worse.

“We are not against the naira redesign policy and if the federal government believes it is a good thing, we are with the government but the following must be done to aid the rural farming communities nationwide.

“The process should have a one-year lifespan. The CBN must as a matter of national urgency increase allocations to banks nationwide to reduce the immediate pressure and challenges created by this policy and the wrong timing.

“The CBN adopts a phase-by-phase implementation process of the currency swap within one year where the three denominations will be phased out at different times with sufficient supply of the new notes to avoid scarcity of that particular denomination.

“The major farming groups, associations and cooperatives should be involved in considering options for adjustment of the policy and implementing such policies that have a direct impact on their members,” he said.

Painting a gloomy picture of the effect of the policy on Sesame seeds farmers, President, National Association of Sesame Seeds Producers, Hon. Sheriff Balogun, said in two weeks, farmers have lost one year’s worth of hard work.

According to him, his members are losing over N200,000 per tonne. “That is over N100 billion lost by Sesame seed farmers within two weeks. Produce that was sold for N1.2m per tonne is now being sold for less than that and the trend is continuing”, he stated.

Hon. Suzan Kiridi-Lokpobiri,who is the Deputy National Coordinator of the directorate for the South-South and Fatimah Mahmud, said with the current losses in the sector, Nigeria has lost a quarter of its GDP.

“We are not a cashless society. We cannot wake up one morning and then go cashless. We need cash, especially in rural areas. How do you want the rural farmers to survive? The price of feeds is going up and the price of eggs is coming down because the rural farmers just want to sell and get cash.

“Nigeria’s food security is threatened because, at the end of this, farmers won’t be able to go to the farm in the new farming season because what they have produced, they are now selling lower hen the production cost.

“This policy is coming at a bad time, knowing that we just came out of a very bad flood situation where our farmlands were washed away. We were yet to recover from that and the CBN came up with this policy. The PoS agents are not working. ATMs are not working. Farm labourers are paid daily in cash. How do you want them to survive?”, Lokpobiri queried.

• …APC presidential candidate seeks 12-month extension

All Progressives Congress (APC) presidential standard bearer Asiwaju Bola Ahmed Tinubu yesterday suggested a six-point solution to the crisis triggered by Naira redesign and currency swap.

He urged the Central Bank of Nigeria (CBN) to allow the new and old Naira notes to co-exist as legal tenders for the next 12 months.

The eminent politician also called for the immediate suspension of associated charges on online transactions and bank transfers and payments via Point Of Sales (POS) until the current crisis is fully resolved.

In a statement titled: “Let us make the best of this moment,’ Tinubu also enjoined the CBN to mobilise all Money Deposit Banks and Payment platforms to show clear commitment and timelines on expanding their infrastructure and support services.

The presidential candidate noted that the past few weeks have been challenging for Nigerians.

especially  Small and Medium Enterprises (SME), poor and vulnerable masses and those whose very survival depended on daily cash transactions.

Tinubu acknowledged that these categories of people and groups have felt the brunt of the combined problems of fuel and Naira scarcities.

Empathising with Nigerians, he said: “We feel the pains of our market women and artisans who have experienced low sales because customers do not have cash to make purchases.

“We hear the loud cries of farmers in rural areas and hinterlands who have been forced to sell their produce at much lower prices so they don’t lose out completely. We hear every Nigerian dealing with the consequences of the roll-out of the cash swap programme.”

Tinubu said although the Naira scarcity has persisted due to the supply limitations of the new notes, it is noteworthy that the fuel queues across the country have started easing out as a result of better supply to fuel stations.

He said: “We are now confronted with how to bring a quick, sustainable solution, and relief to Nigerians on the challenges still posed by the non-availability of new Naira notes,  so that social and economic activities can move on unimpeded and normalcy can immediately return to our financial services sector and overall productivity of our nation.”

Tinubu clarified that he and his running mate, Senator Kashim Shettima, and the APC Campaign Council were not opposed to the CBN’s currency redesign and cashless policy.

He maintained that he was only concerned about its disruptive implementation and the hardship it has brought on Nigerians.

The former Lagos State governor hailed the Council of State for its cogent advice that the old and new notes should co-exist as legal tenders.

His words: “In seeking a quick resolution, the National Council of State met on Friday, February 10, 2022, and advised the government and Central Bank in particular, to push more new Naira notes into circulation and also allow for the old notes to remain a legal tender by ensuring supply gaps relative to infrastructural limitations are bridged by recirculating it to ameliorate the pains caused by the scarcity of new ones.

“We agree with the wisdom of the Council of States as a necessary starting point to begin redressing the unintended consequences of what would have otherwise been a good policy that required mainstream adoption.

“For the record, I and my running mate, Senator Kashim Shettima and our campaign council do not have anything against the CBN Naira redesign and cashless policy in principle.

“We are, however, only concerned about its disruptive implementation and the hardship it has brought on the generality of our people who currently can’t access their hard-earned money to meet obligations and the attendant consequences on the informal sector, where the majority operate.

“Despite the challenges and current difficulties, we are a country of resilient, bold and courageous people who don’t succumb to hard times. We have always overcome our most difficult times and come out better as a people and a nation. This time will not be different. We will make lemonade out of our current lemons.”

To bring immediate relief to Nigerians, Tinubu  urged the CBN 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) will 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 the currency swap programme for the next 90 days to help decongest banking halls and ATM points where people line up for hours.

“The Central Bank and other relevant MDAs 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.

“The CBN, National Orientation Agency and Ministry of Information, State and Local Governments with their relevant organs in both the public and private sectors should commence a major public enlightenment and sensitisation campaign to further educate and empower our people on the new naira and cashless policy for better understanding and mainstream adoption.

“As leaders, our commitment to our country every day must be on how to make life better for our people and we are called upon not to waste the opportunity the moment presents to us to ramp up capacity and capability to serve 200 million Nigerians, leaving no one behind and ultimately improve the living conditions of every single Nigerian.

“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.