Buhari dissatisfied with difficulty of naira redesign —Ahmed
by Johnbosco Agbakwuru, LAGOS, and Economy Editor Babajide Komolafe
Mr. Babatunde Fashola, the minister of works and housing, and Mrs. Zainab Ahmed, his counterpart in charge of finance, budget, and national planning, bemoaned yesterday how Nigerians are suffering as a result of the federal government's naira redesign policy. According to Ahmed, President Muhammadu Buhari is dissatisfied with the hardships Nigerians are going through.
Fashola stated that the program should be revisited, but Ahmed asserted that the "early pain is vital for the economy."
The two spoke as the CBN instructed banks to only accept N20,000 in fresh notes per day after a video of terrorists waving wads of them yesterday went viral.
The apex bank promised that ATM lines would soon shorten and that it would work with the police and other security agencies to apprehend and prosecute anyone caught selling or abusing the new notes.
Senator Rabiu Musa Kwakwanso, the presidential candidate for the New Nigeria Peoples Party (NNPP), also stated yesterday that since presidents are bank owners, they will not be impacted by the shortage of the new notes.
After initially setting January 31 as the deadline for the exchange of old naira notes, the CBN has set February 10 as the new date.
There is currently a shortage of the new N200, N500, and N1,000 notes, which has led to misery in the political system for many Nigerians.
Fashola explains the necessity for policy revision.
On Wednesday during an Instagram Live interview with talk show host Morayo Afolabi-Brown, Fashola asserted that Asiwaju Bola Tinubu, the All Progressives Congress, APC's presidential candidate, was standing up for Nigerians when he expressed worry about the shortage of the new notes.
"I have compassion for the people of Nigeria and what they have through. This is how some policies work out during implementation; sometimes everything works out beautifully, and other times it necessitates reconsideration and review, according to Fashola.
"Despite the fact that the CBN has behaved in accordance with the language and spirit of the law granting it independence, it is crucial to keep in mind that we serve the public, and when the public expresses pain, it is crucial to take a step back and consider how we may ease that pain. It can't be an ego issue.
"Our candidate deserves all the credit for being one of the first loud voices and the first candidate to speak up in Abeokuta.
Although some people jumped to the conclusion that he was opposing Buhari or his own party, it is in his nature to fight for the underdog. Although our candidate hasn't acknowledged it, the naira is harming people. Thus, a reassessment of the implementation is required, he claimed.
I wasn't Tinubu's pawn, I said.
While Tinubu was the governor of Lagos, the minister claimed he was never a puppet for him, but he did consult with him because of "his experience."
When he was governor, he realized that someone had previously held the position for eight years. "That person is still alive, that person has had time to reflect, and that person would have made mistakes," he said. "If I wanted to succeed, I shouldn't learn from my own mistakes, I should learn from his experience."
Buhari unhappy with difficulties brought on by Naira redesign— Ahmed
According to Mrs. Zainab Ahmed, Minister of Finance, Budget, and National Planning, President Buhari is concerned about the suffering the redesign of the naira is putting the populace through.
However, the minister pointed out that the hard realities that citizens must deal with as a result of the strategy are an essential cost to be paid for the long-term health of the economy.
Responding to questions from State House reporters after speaking at the 65th State House Ministerial Briefing, which was held at the Presidential Villa in Abuja and organised by the Presidential Communications Team, Mrs. Ahmed said the current hardship, while only temporary, is necessary to combat corruption and gradually move towards a cashless economy.
The minister claimed that "the patient must submit to severe pain while getting therapy," comparing the current state of affairs in Nigeria to a "patient with a wound or deep sore."
She claimed that the government was glad that a large amount of old money had been recovered and reinjected into the banking system, allowing the regulatory bodies to regain control over the country's currency.
"Of course we are concerned, we are not pleased that citizens must wait in lines and battle to obtain their money, but this is only a temporary scenario," she said.
"Let me use an analogy. This circumstance can be compared to a patient who has a sore, and you have to put some iodine or spirit to the sore to treat it, which is typically very unpleasant.
"At this time, it is something that must be done. However, the Central Bank has been helpful in giving certain extensions and explaining why things are still open after the closing date. Citizens still have the option to bring their old currency to the CBN for redemption, as allowed by Section 20(3) of the CBN Act.
Mr. President is not pleased that the public is suffering, but there is a silver lining: a lot of money has been swept up and put back into circulation.
She also expressed surprise at the most recent Moody's assessment on Nigeria, which revised the outlook to stable on January 27, 2023, and reduced the government of Nigeria's long-term issuer rating from B3 to Caa1.
"I want to add that we were surprised by Moody's report or downgrading because we had outlined all of the work we have been doing to stabilise the economy.
However, as they are external rating organisations, they do not truly comprehend what has occurred in the internal environment.
Following its downgrading of Nigeria's rating last week, the international rating agency Moody's Investors Service likewise lowered the ratings of nine Nigerian banks.
She urged Nigerians to anticipate the S&P rating, which will be released in a few days and "is expected to reflect a stronger prognosis for Nigeria," nevertheless.
Kwankwaso, a presidential candidate, is unaffected by the shortage of naira notes.
Speaking about the limited supply of the new notes, Senator Kwakwanso claimed that because "they are owners of banks," his contemporaries are unaffected by the naira redesign policy.
Speaking on Sunrise Daily, a Channels Television programme, the former governor of Kano State claimed that the policy had little impact on politicians, especially those running in the elections scheduled for next month.
He asserts that the wealthy class controls American banks and is immune to the effects of money shortages.
"We in the NNPP are not happy with the three months and even the 10 days they are talking about," he stated. Many Abuja residents who are comfortable in their workplaces or homes are unable to comprehend what is going on outside.
"What the government is saying is about leaders and politicians who would want to take too much money. They are unaware that many of our coworkers, those running for office, particularly the presidential candidates, and consequently everyone in their party, are bank owners.
"On top of that, there are banks everywhere near them. Thus, they stand to gain nothing. Both the PDP and the APC have governors. By this point, governors would have gotten a lot of money from the banks in their states.
"I'm sure one or two of them may have banks or possess significant interests in some of these banks if their buddies have banks," I said.
"Some people in politics may be grumbling for tactical reasons, but I don't think they really mean it; I think their grumbling is just a gimmick. We think they are problem-free.
Terrorists are shown in a viral video carrying wads of fresh currency.
In the midst of a cash shortage, a known terrorist leader named Machalla Baleri has been seen in a viral video showing off wads of fresh bills.
In the two minutes and 20 second unverified video clip that was posted online on Wednesday, Baleri claimed to possess up to N10 million in the new naira notes. He spoke in the Hausa language.
Additionally, he asserted that he has enough fresh naira notes to buy more firearms.
Banks are instructed by the CBN to accept fresh notes in person.
The CBN has instructed deposit money banks, or DMBs, to start paying out the redesigned Naira notes over the counter, subject to a daily payout cap of N20,000, in order to mitigate the impact of the new notes' limited supply.
This was revealed in a statement by the CBN's director of corporate communication, Osita Nwanisobi, who also said that the apex bank would work with the Nigerian Police, the Federal Inland Revenue Service, the Economic and Financial Crimes Commission, the EFCC, and the Nigerian Financial Intelligence Unit, NFIU, to prosecute naira abusers and sellers.
"The Central Bank of Nigeria (CBN) has watched with grave concern the activities of those who sell the newly redesigned banknotes and those who flagrantly misuse the legal tender by tossing wads of Naira notes into the air and stamping on the money during social events," he stated.
"We have also observed long lines at ATMs across the nation and an increase in the number of instances of persons hoarding and aggregating newly launched banknotes they repeatedly collect from ATMs for reasons best known to themselves. The reported instances of unregistered individuals and non-bank personnel exchanging banknotes for members of the public while ostensibly acting on behalf of the CBN are also concerning.
"We desire to declare categorically that it is forbidden to sell the Naira, hurl (spray), or stamp on the currency in any way, contrary to the practice of these anti-nationals.
To be clear, the Central Bank of Nigeria Act 2007 (as amended) states in Section 21(3) that "spraying, dancing, or matching on the Naira or any note issued by the Bank during social occasions or otherwise, howsoever, shall constitute abuse and defacing of the Naira or such note and shall be punishable under the law by fines or imprisonment or both.
Similar to Section 21(4), which declares that "It shall also be an offence punished under Sub-section (1) of this section for any person to hawk, sell, or otherwise transact in the Naira notes, coins, or any other note issued by the Bank.
In order to address the unpatriotic behavior, the Central Bank of Nigeria (CBN) is working in conjunction with the Nigeria Police, Federal Inland Revenue Service (FIRS), Economic and Financial Crimes Commission, EFCC, and the Nigerian Financial Intelligence Unit (NFIU).
"Therefore, we caution Nigerians, especially those attending social events like birthdays, marriages, and funerals, to refrain from disrespecting the Naira or risk having their property impounded by law authorities.
"While reassuring Nigerians of our commitment to ensuring the efficient distribution of the newly introduced Naira banknotes, we ask people to practice patience as the CBN works tirelessly to find solutions to the problem of long lines at ATMs.
The Governor, Mr. Godwin Emefiele, has instructed deposit money banks (DMBs) to start paying out the redesigned Naira notes over the counter, with a daily payout cap of N20,000. This is in keeping with the Governor's stated resolve.
"We also urge the general population to accept and use alternative payment methods for their transactions. Our official currency and emblem of national pride is the naira. Therefore, let's treat it with respect and caution.