•PoS charges still rising …Extend deadline, traders beg CBN
By Chinwendu Obienyi
Nigerians hoping for some reprieve from the Supreme Court yesterday were left disappointed and angry as the court adjourned the suit filed by some state governments challenging the February 10 deadline set by the Central Bank of Nigeria (CBN) policy ending the use of old naira notes.
A seven-member panel of the court led by John Okoro, adjourned the case on Wednesday to February 22, 2023.
Daily Sun investigations across the country showed that long queues were still visible in the banking halls as well as Automated Teller Machines, while Point of Sale (PoS) operators continued defying the CBN threat, by sustaining their soaring transaction charges.
There have been concerns over the survival of Nigerians and small businesses amid the lingering cash crunch less than two weeks to the nation’s general elections. The crisis has plunged many citizens and their businesses into hardships, with many finding it extremely difficult to meet basic daily needs.
Many believe that a further delay in resolving the case by the court will deepen the hardship Nigerians are grappling with as a result of the naira redesign policy of the CBN.
Daily Sun learnt that the adjournment came after the panel heard a series of joint applications by other states wishing to be joined as parties to the suit. The court, before postponing its sitting, joined a total of nine states as either co-plaintiffs or co-defendants in the suit.
Seven of the states joined as co-plaintiffs alongside three others controlled by the All Progressives Congress (APC) – Kaduna, Kogi and Zamfara states – which originally filed the suit.
The new co-plaintiffs, who are in support of the suit and against the CBN policy, include: Cross River (South-south), Sokoto (North-west), Lagos (South-west), Ogun (South-west), Katsina (North-west), Ondo (South-west) and Ekiti (South-west) states.
All of them except Sokoto State which is being governed by a Peoples’ Democratic Party (PDP) governor, are APC states. Two other states – Bayelsa and Edo – were joined as co-defendants on Wednesday. Both of them are PDP-controlled states.
Their joinder as co-defendants, based on their applications, implies that the two states will be arguing against the suit, apparently because they are most likely supporting the CBN policy.
Despite the Supreme Court granting an ex parte application suspending the implementation of the February 10 deadline set by the CBN to end the legal tender status of the old N200, N500, and N1,000 notes exactly a week ago, both President Muhammadu Buhari and the CBN who approved the naira redesign policy have remained silent on the order.
Although the CBN Governor, Godwin Emefiele had restated that it was needless to extend the deadline, traders have lamented that the scarcity is affecting their businesses. Mr Chidi Obinna, a dealer in electronics, said, “In the last few weeks now, I have recorded failed transactions done electronically. There are customers who will come and pay cash or make transactions via their mobile bank apps or even via USSD. But nowadays, I have stopped collecting the old notes because the banks rejected about N500,000 from me which is not even making me happy”.
When Daily Sun correspondent tried explaining to Mr Obinna that the CBN cash deposit window is now open to the public from 15th of February to the 17th of February 2023, he instead urged the CBN to look at ways of extending the deadline for old notes.
“It is a very good initiative but they have to see that the population of Lagos alone is massive. Rather than this cash deposit window, it is better they extend the deadline because there are so many Nigerians like me who have bigger amounts in their hands. If not, we might see some form of another recession, tension and protests”, he said.
Also commenting on the development, Ayodeji Ebo, the Managing Director, Optimus by Afrinvest, said Nigerians are not sure that the quantity of notes available , compared to what has been taken is really minimal.
“The proportion of what is meant to come is not much and this is what is causing this scarcity that Nigerians are seeing. Also, the Supreme Court judgement is an interim one and that fact we waited today only to hear that it has been adjourned to next week has dashed the hopes of Nigerians who wanted a definite judgement. So, I do not think that the banks or anyone can act on an interim judgement. Also, there was no circular issued by the CBN stating that they are shifting ground on this matter. It is very pathetic that a lot of innocent people may lose their money because their old notes have become less in their hands”, Ebo said.
He noted that some businesses remain cash driven while some are online driven. “We have seen customers complain of failed transactions, network glitches and the rest, these things need to be addressed for people to be confident to adopt this transition.
I think the only solution here is to increase the supply of the new Naira notes and if that is not possible based on the available capacity, then the FG should look at making the old notes as legal tender pending when there are enough new notes in circulation”, he said.