Economists have urged the Central Bank of Nigeria (CBN) to identify and address bottlenecks associated with the cash swap policy, causing uncertainty currently pervading the economic environment.
The experts, who made the appeal in separate interviews in Lagos, said it is necessary to ease tension emanating from the policy’s attendant hardships. They were reacting to the Supreme Court’s adjournment of the suit filed by some state governments, challenging the February 10 deadline by CBN to end the use of old N200, N500 and N1,000.
The Managing Director, Cowry Asset Management, Johnson Chukwu, said the situation is no longer a case of judicial directive or order but about what should be done to relieve the pressure on citizens.
“I have argued repeatedly that CBN can order the commercial banks to pay as much as N100,000 over the counter, and if they do that and people are able to withdraw at least N100,000 per week, I believe the pressure will come down, and people will get some relief,” said Mr Chukwu.
I think CBN should make an effort to identify where the bottlenecks are and address them. They need to enhance the printing of the redesigned naira notes and their effective distribution through deposit money banks.
Professor of Financial Economics and the director of the Centre for Economic Policy Analysis and Research, University of Lagos, Akoka, Ndubisi Nwokoma, urged the CBN to identify bottlenecks and address them.
“I think CBN should make an effort to identify where the bottlenecks are and address them. They need to enhance the printing of the redesigned naira notes and their effective distribution through deposit money banks.
“The battle over the old notes and the Supreme Court case, in my view, is largely about the 2023 elections and the incidence of vote buying,” said Mr Nwokoma
He noted that the “battle is less about the current sufferings of the ordinary person and more about the interests of some politicians who have stashed away huge sums of the old notes for use in mobilising for the elections.”
He urged Nigerians to support the CBN policy, insisting that CBN’s position on the old notes ceasing to be legal tender after February 10, is reasonable enough for public support, at least to protect the integrity of the 2023 elections.
A professor of Economics and Public Policy at the University of Uyo, Akwa Ibom, Akpan Ekpo, who described the postponement as “unfortunate,” wished the court had delivered judgment on the matter.
“But I think the Supreme Court is the highest court in the land, the Central Bank is not bigger than the Nigerian Constitution, and by this, all government agencies, organs and so on, are supposed to enforce the Supreme Court’s order, and everybody has to obey it,” Mr Ekpo explained.
He added, “My concern is that until February 22, the old notes have to be accepted along with the new ones. That’s my understanding. So, everybody should be patient and wait until February 22.”
Another economic professor at the Economics Department, Olabisi Onabanjo University, Ago-Iwoye, Ogun, Sherifdeen Tella, believes that the Supreme Court’s failure to punish CBN for defying its order was what was fuelling the confusion in the economy.
“The postponement of hearing on the CBN policy may be in order if the court feels it needs time. But failure to punish those flouting its orders, including the CBN, that the old Naira remains acceptable for transactions is fuelling the confusion in the economy,” Mr Tella stated. “Or, does anyone need to go to court separately to sue for violation of court order by CBN, banks and even a court in Lagos?”
A professor of Capital Market at the Nasarawa State University, Keffi, Uche Uwaleke, said: “The postponement would only heighten the anxiety and uncertainty currently pervading the economic environment, especially against the backdrop that the CBN has maintained February 10, as the date the old notes cease to be legal tender.” (NAN)
