For many Nigerians, the hardship occasioned by the decision of the Central Bank of Nigeria (CBN) to redesign some higher denominations of the nation’s currency is unprecedented.
From unending queues at banking halls, Automated Teller Machines (ATMs) spots and customer service desks to non-circulation of the new naira, Nigerians have bemoaned the policy and condemned it for its poor management.
There has been confusion across the country as the CBN insisted that February 10, 2023 is the deadline for the old notes to be legal tenders, despite a temporary order of the Supreme Court that Nigerians should be allowed to co-spend the new and old notes.
When this latest stance of the apex bank filtered into the public on Tuesday, Investors King had reported that there was confusion and panic among the people, especially traders who had been transacting with the old notes. When some of them got to the commercial banks to deposit the old notes, they were directed to the CBN office.
Contrary to the opinions of affected Nigerians, CBN Governor, Godwin Emefiele has disclosed that there are many gains that the naira swap would fetch the country’s economic outlook and currency management.
Unlike some insinuations in some quarters that the naira redesign policy was hasty and afterthought, Emefiele argued that the bank had a comprehensive discussion, analysis and wide consultation before arriving at the decision, affirming that it was for the good of the Nigerian economy.
Briefing the diplomatic community on recent monetary policy decisions of the CBN at the Ministry of Foreign Affairs in Abuja on Tuesday, Emefiele revealed that the nation had been challenged in currency management in Nigeria and that the issue has been undermining the nation’s sovereign integrity
In order to tackle the persistent challenges, the CBN Governor said the bank decided to redesign N1,000, N500 and N200 notes.
Emefiele said the decision is among the bank’s purview, adding that currency management is a key function of the Central Bank of Nigeria, as enshrined in Section 2(b) of the CBN Act 2007.
For the CBN boss, the institution is only interested in the integrity of a local legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy, adding that they are some of the hallmarks of a great Central Bank and that at long run, the nation would see the benefits.
Some of the gains of the currency redesign initiative, according to Emefiele, included making the monetary policy decisions more effective and that it has been seeing inflation trending downwards and exchange rates relatively stable.
He said the bank was hoping to increase financial inclusion in the country by reducing the number of the unbanked population, adding that the bank’s aim is to fight Insecurity and banditry in the country.
The CBN Governor said the currency swap I’d already paying off as ransom-taking has become difficult while and the military are making good progress in the fight against insecurity.
He added that there are expectations that the policy would fetch more economic gains for Nigeria, including reduction in money supply, lowering inflation, exchange rate stability among others.
Explaining why Nigerians have been facing difficulty in accessing the new currency, Emefiele blamed some politicians whom he said had bought and hoarded the new currency for political reasons.
