.As N900bn still outside banking system
While some have hailed the decision of the Central Bank of Nigeria (CBN) to extend the deadline for the swap of old naira notes at commercial banks by 10 days, others complain it is still not enough.
This is even as about N900 billion remain outside the banking system, against a collection of N1.9 trillion since the commencement of the program.
The CBN had fixed January 31st (tomorrow) as the deadline for the exchange of the old naira notes – N200, N500 and N1,000.
Despite insisting there will be no extension, the CBN Governor, Godwin Emefiele, in a press statement yesterday, announced that President Muhammadu Buhari has approved the cash swap, after a visit to his home in Daura, Katsina State.
He had visited the President to update him “about the implementation status of the CBN currency redesign program currently going on across the Federation,” and measures put in place to ease the scarcity of the new Naira notes.
The announcement was greeted with a huge sigh of relief by the majority of Nigerians, who expressed frustration over the continued scarcity of the new naira notes.
Emefiele explained that “Aside from those holding illicit/stolen Naira in their homes for speculative purposes, we do aim to give all Nigerians that have Naira legitimately earned and trapped, the opportunity to deposit their legitimately trapped monies at the CBN for exchange.”
He continued: “Based on the foregoing, we have sought and obtained Mr President’s approval for the following: a 10-day extension of the deadline from January 31, 2023, to February 10, 2023; to allow for collection of more old notes legitimately held by Nigerians and achieve more success in cash swap in our rural communities after which all old notes outside the CBN loses their Legal Tender Status.
“Our CBN staff currently on mass mobilization and monitoring together with officials of the EFCC and ICPC will work together to achieve these objectives.
“A 7-day grace period, beginning on February 10 to February 17, 2023, in compliance with Sections 20(3) and 22 of the CBN Act, allowing Nigerians to deposit their old notes at the CBN after the February deadline when the old currency would have lost its Legal Tender status.”
Emefiele assured that the cash swap programme has achieved 75% success rate of the N2.7 trillion held outside the banking system, seeing as the CBN had “deployed 30,000 Super Agents nationwide to assist in our Cash Swap Initiative in the hinterlands, rural areas, and regions underserved by banks in the country…”
Aside from those holding illicit/stolen Naira in their homes for speculative purposes, we do aim to give all Nigerians that have Naira legitimately earned and trapped, the opportunity to deposit their legitimately trapped monies at the CBN for exchange.
Reps committee reject extension
But the House of Representatives ad hoc committee on new naira re-design and naira swap policy said a 10-day extension is not a solution to the challenges on ground.
The committee chair and leader of the House, Alhassan Ado Doguwa, who rejected the extension yesterday, insisted that the CBN must comply with sections 20 sub 3, 4, and 5 of the CBN Act.
The House had threatened Emefiele with a warrant of arrest for failing to show up for questioning regarding the scarcity of the new notes.
In its swift reaction, Doguwa said: “The 10-day extension for the exchange of the old naira notes is not the solution. We as a legislative committee with a constitutional mandate of the House would only accept clear compliance with section 20 sub 3, 4, and 5 of the CBN act and nothing more.
“Nigeria as a developing economy and a nascent democracy must respect the principle of the rule of law. And the House would go ahead to sign (an) arrest warrant to compel the CBN Governor to appear before the Adhoc committee.”
However, his Minority Leader counterpart, Ndudi Elumelu, commended the CBN for extending the deadline for swapping of the old naira notes, describing it as a welcomed development.
He said the decision will help to ease the suffering as well as social and economic discomfort being faced by many Nigerians in accessing the new naira notes.
“As lawmakers and representatives of the people, our caucus commends the CBN for being considerate towards the wellbeing of Nigerians which is the essence of democratic governance all over the world.”
He called on Nigerians not to rest on their oars but to take maximum advantage of the 10 days extension to swap their old naira notes for the new ones.
He also urged the CBN to remain focused and intensify sensitisation while putting every measure in place to assist Nigerians, especially those in the rural areas, to access the new naira notes.
Extension is inadequate
Similarly, the Centre for the Promotion of Private Enterprise (CPPE), also said the 10-day extension is grossly inadequate to make up for the glaring shortcomings in policy implementation
The Chief Executive Officer, CPPE, Muda Yusuf, in a statement yesterday, criticised the CBN over the numerous shortcomings in the redesign policy implementation.
The statement reads: “The CPPE believes that 10 days is grossly inadequate to make up for the glaring shortcomings of the apex bank in this process.
“We (Nigerians) have seen clear evidence of lack of capacity with respect to production from the CBN because if something is available in adequate supply it would show and if otherwise, it will still be obvious as it is currently the case with Nigerians,” he said.
“Clearly we are dealing with a situation of acute shortage, that’s when you relate what’s made available to the demand for the new notes. Even up to last Friday, some banks and ATMs were still dispensing the old notes.”
ASSBIFI commends extension
The Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), in Lagos, endorsed the extension, saying it was a step in the right direction.
ASSBIFI President, Olusoji Oluwole, told the News Agency of Nigeria (NAN) that the CBN decision to extend the deadline would allow for the collection of more old notes.
He also noted that Nigerians would still have a grace period to deposit their old notes directly with the CBN until February 17.
“It is a step in the right direction, especially in providing more time for the return of old notes after the actual date of invalidation.
“CBN, however, needs to proactively monitor and address sufficient availability and distribution of the new notes.
“It should also increase sensitisation of, and probably incentivising the general public on the cashless policy to reduce the pressure on cash,” Oluwole said.
