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•Economists threaten suit against CBN over currency scarcity
From Uche Usim, (Abuja) and Ogbonnaya Ndukwe, Aba
Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, on Tuesday, said there was no need to extend the February 10 sunset date for the old naira notes, as efforts are in top gear to ensure more redesigned notes are available nationwide, in addition to alternative banking channels.
Emefiele made the disclosure when he unfolded the apex bank’s monetary policy programmes to members of the diplomatic community in Abuja.
According to him, several strategic steps were taken before venturing into the currency redesign programme.
His position is coming after he met with President Muhammadu Buhari on Monday, amid an existing Supreme Court interim order kicking against implementing the currency redesign programme, though the CBN was not a party to the suit.
Emefiele said: “The situation is substantially calming down since the commencement of over-the-counter payments to complement ATM disbursements and the use of super-agents. There is, therefore, no need to consider any shift from the deadline of February 10.
He warned Point-of-Sale (POS) agents who charge above N200 for cash swap to immediately desist from such dastard acts as culprits will be arrested and visited with the full weight of the law.
The CBN Governor further stated that the PoS operators can come to the CBN to be compensated for any extra cost incurred in getting the new notes rather than peppering hapless customers with ridiculously inflated charges.
Emefiele called on the ambassadors and other members of the diplomatic community to support its cashless policy blueprint, which comes with numerous sovereign benefits, especially in economy and security.
He revealed that Nigeria was among the six leading nations with the best electronic payment infrastructure in the world.
Emefiele added that Nigeria, being the biggest economy in Africa, should not be addicted to cash spending with all its demerits.
“Nigerians carry so much cash and it is wrong. We want to be like the advanced countries. Being the biggest economy in Africa, we should go cashless.
“Yes, there will be transient and temporary pains. It’s temporary. I appeal to the diplomatic corps to help us be like you. We should not encourage handling cash that could easily be used for illicit purposes and hurt monetary policy administration.
“In 2015, N1.4 trillion was in circulation but by October 2022, N3.2 trillion was in circulation and out of this figure, N2.7 trillion was in people’s homes, while N500 billion was in the banks.
The money outside the banks grew because we asked banks to report suspicious transactions above certain thresholds. When such are reported, the NFIU, EFCC and ICPC are obligated to pick the persons involved and investigate.
“When CBN releases money, it should circulate and return to the CBN. The money in homes is not available in the economy in reality and that’s not right”, he explained.
The CBN had set February 10, 2023 deadline for the old N1,000, N500, and N200 notes to stop being legal tender in Nigeria.
NAE threaten legal action
Meanwhile, the Nigeria Association of Economists (NAE) has threatened to drag the Central Bank of Nigeria (CBN) to court, if it failed to heed its advice to allow the continuous use of old and new Naira notes, until the old ones are withdrawn.
They said the hasty directive that the old ones stop being legal tender on a particular date, was not in the best interest of the country and the citizens.
National President of NAE, Prof Innocent Eleazu, stated this while addressing the closing ceremony of a month-long programme tagged: “Economic History Month,” in Aba, Abia State.
He said the advice became necessary in view of the sufferings of Nigerians, who go to the banks to queue daily, but fail to get the new N1,000, N500, and N200 notes.
He noted that in countries like the United States of America (USA), the old and new dollar notes, were still in circulation and being used simultaneously, while the old ones were gradually being withdrawn.
Eleazu lamented the failure of government to heed his advice that the nation’s economy was fast approaching a hyperinflation, last year.
He further regretted that in spite of the warning, the CBN, introduced the new Naira notes at this time, which, he said, has no doubt compounded the problem.
“Last year, I warned that the economy was fast approaching a hyperinflation.
“Unfortunately, the Central Bank of Nigeria, unwisely chose to introduce the new notes at this time, which no doubt, compounded the problem.
“Now, we are in a dangerous situation where anything can kick start a bank run.
“The CBN should stop insisting on a dateline to withdraw all the old Naira notes in circulation. Instead, it should allow both the old and new notes to circulate, until the old ones are gradually withdrawn or phased out.
“You may be surprised to know that in the United States of America (USA), both the old and new dollar notes, are still in circulation till this day.
“If the Central Bank still insists on a dateline to end old notes as legal tender, the Nigeria Association of Economists (NAE), will go to court to compel it, to allow the old and new notes in circulation until the old ones are withdrawn.”
The NAE National President, expressed disappointment on the neglect of his members’ inputs and dire importance in governance, and advised incoming administrations at the federal and state levels of government, to employ economists to their highest use value.
According to him, in developed nations of the world, every sector of the economy employs substantial number of economists.
On the general position of Nigeria’s economy, Eleazu, said there was sufficient evidence to believe that there were economic and political instability in Nigeria, naming them as the two most important factors that influence foreign investments in any
