NIGERIANS are left to their fate to suffer continuos pains as a result of the Central Bank of Nigeria’s (CBN) silence and non-adherence to the Supreme Court verdict on the use of old N200, N500 and N1000 naira notes till December 31.
The CBN had last October announced it would be redesigning the N200, N500 and N1,000 notes.
The new notes were introduced into the system on December 15, 2022, with the CBN initially setting January 31, 2023 as the deadline, as legal tender, for the old notes being rested.
One of the reasons the CBN gave for its naira redesign decision was its resolve to strengthen Nigeria’s cashless economy.
This CBN’s claim has been punctured by some industry experts, who believe available data.
“Cash to gross domestic product,GDP ratio in Nigeria is currently 1.3 per cent, with the country’s GDP currently at N202 trillion,” said an economist and the former Director-General of the Lagos Chamber of Commerce, and Executive Director, Centre for Promotion of Private Enterprises, CPPE Muda Yusuf.
Yusuf lamented the dislocation of the economy and suffering confronting Nigerians on the currency redesign problems, and wondered why CBN is not addressing the outcry of Nigerians on the issue.
To state the least, the policy has brought so much agony to individuals, families and businesses as the new notes have remained scarce. The CBN has not helped matters with its decision somersaults on the swap of the old with the new
As a result, the Supreme Court on March 3 ordered that old N200,N500 and N1000 remain in circulation till December 31.
The apex court also nullified the Federal Government’s naira redesign policy, declaring it as an affront to the 1999 Constitution.
Despite the apex bank’s verdict, the CBN has not issued official notification to banks to effect the spending of the old notes as a legal tender.
This development has worsened Nigerians’ economic problems, increased the confusion about the validity of the rested notes.
Currently, the slogan among Nigerians is: ‘Do you have cash’ as cash crunch continues to bite hard, making day to day economic activities difficult.
Most Nigerians, including small scale business operators, had to wait till midnight when transfer and bank networks are relatively stable to do their business transactions, amid scarcity of the new currency.
“I help my mother to do the transfer to her customers many of whom she buys her businesses from. I had to wait till midnight everyday to transfer money to her main customers at ‘Oseokwodi market’ in Onitsha Anambra State.This would help her re-stock her business , otherwise she would be out of business,” Nkemka Okeke, a young undergraduate whose mum deals on foodstuff business told The ICIR.
She further said that most people had to buy the new currency at exorbitant prices to facilitate their movement.
“As at now, we pay N8000 to collect N5000 of the new currency. This is not good at all for small scale businesses.”
Nkemka said many businesses are gradually adapting to the new development, as some are currently procuring Point-of-Sale machines as transfer glitches take its toll on businesses.
A restaurant manager, Oluchi Mgbemena, shared similar concerns as Nkemka. She said, “I had to sort out transferring mechanism from my customers in order to buy my food stuff from them. After sales, I had to keep late night to send their money for the next market day. Otherwise, you won’t get supply.”
Oluchi pointed out that those who come to market with cash are given priority, and atimes buy goods on a negotiable discounts.
The Lead Director, Centre for Social Justice and a Development, Eze Onyekpere, told The ICIR that the silence of both the CBN and the Attorney General of the Federation on the matter signposts impunity and absurdity.
“What is happening is not just about the Central Bank of Nigeria,but of impunity and absurdity.Why is the President silent on the matter.The Attorney General went to court on behalf of the Federal Government on this matter, why has he not issued a public statement,urging the CBN to ensure compliance on the supreme Court Order?,” Onyekpere queried.
“You recall, Emefiele wanted to be a Presidential flagbearer of APC, and when they were eventually given the marching others to resign for those who wants to contest. He even went to Court to seek for court an order allowing for him to contest.”
He expressed worry on the CBN’s governor action, which he described as ‘reprehensible’.
The ICIR had contacted the CBN to respond to the matter, but no response yet as of time of filing this report.
Also, the Association of Corporate Affairs Managers of Banks (ACAMB) Rasheed Bolarinwa has not confirmed any official directive from the apex on the usage of the old notes.
Some bankers who spoke to The ICIRÂ on the condition of anonymity said they had not heard any directive from their regulator ordering use of the retested notes as a legal tender.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.