Anxiety as CBN says no going back on Naira swap deadline
…Gov. Abiodun, Others threaten to shut banks rejecting old notes
…To join Kaduna, Kogi, Zamfara on suit against FG
…Court rules today
…Apex Bank threatens to arrest, jail POS agents charging above N200 for cash swap
…Orders banks to refund customers for system failure
…Says politicians hoarding new Naira notes
Bankole Taiwo, Abeokuta
More anxiety has been on motion as Nigerians await today (Wednesday) the court verdict on the Naira swap policy and the legal status of the old Naira notes, while the Central Bank of Nigeria (CBN) has maintained that there is no going back on the February 10 deadline it set for the old Naira notes to cease from being legal tender.
The directives of the CBN have seen banks rejecting the old Naira notes from customers, a development that has led to more reactions from Nigerians.
The Governor of the CBN, Godwin Emefiele, during a visit on Tuesday to the Ministry of Foreign Affairs, to discuss the monetary and currency redesign policy of the bank, maintained that there was no need to shift the February 10, 2023 deadline.
He said, “The situation is substantially calming down since the commencement of over-the-counter payments to complement ATM disbursements and the use of super-agents.
“There is, therefore, no need to consider any shift from the deadline of February 10.”
Recall the Supreme Court last Wednesday had restrained the Federal Government from implementing the February 10 deadline for the currency swap.
A seven-man panel of the apex court led by Justice John Okoro, in an unanimlous unanimous ruling, granted an interim injunction restraining the Federal Government, the CBN and commercial banks from implementing the Friday terminal date for the old Naiira notes.
Three northern states, Kaduna, Kogi and Zamfara, had, in a motion ex-parte filed on February 3rd, prayed the apex court to halt the Central Bank of Nigeria’s naira redesign policy.
The court further held that the FG, CBN, and commercial banks must not continue with the deadline pending the determination of a notice on notice in respect of the issue on February 15 (today).
However, the CBN Governor on Tuesday insisted that there was no need to shift the deadline.
He also said that Point of Sale agents who charge above N200 for the CBN cash swap programme will be arrested and jailed when caught.
The CBN Governor further said that the PoS operators can come to the CBN to be compensated for any extra cost incurred in getting the new notes rather than charging a higher fee on customers.
…Lawyers kick against ignoring court ruling
Meanwhile, reacting against the CBN’s position, Rights activist and Senior Advocate of Nigeria, Femi Falana, berated the CBN for allegedly disregarding the interim injunction of the Supreme Court suspending the implementation of the February 10 deadline on the use of the old banknotes
Falana, during a live appearance on Channels TV’s The 2023 Verdict on Tuesday, said the government was not ready to comply with the order, a report by Channels TV says.
“In a country where the rule of law operates, once the Supreme Court has determined a matter or given an order, it is expected that all and sundry – everybody – will comply with the order,” Falana said.
He added that a statement credited to the CBN that it would not comply with the order of the apex court because it was not a party to the case could only be tenable in a “banana republic.”
“[A] statement was credited to the central bank that since it was not a party to the case, it’s not going to comply with the order. I thought that could only happen in a banana republic.
“I expected the central bank to have issued a statement following the order of the Supreme Court: ‘all actions are stale until the 15th of February,’” he said.
The SAN added that an example should be made of those flouting court orders, stressing that nobody should feel that they were above the law.
“For me, an example has to be made this time around, so that nobody will feel that he’s above the law in our country,” he added.
…Govs threaten to shut banks rejecting old notes
Meanwhile, as the Naira swap continues to generate inconvenience and protests in States across the Country, some State Governors have threatened to revoke the licences of banks rejecting old notes from customers.
Banks have continued to refuse to collect old notes of N1000, N500 and N200 despite last week Supreme Court that ruled that these old notes should still be legal tender pending the determination of another suit challenging the introduction of the newly redesigned Naira on February 15 (today).
Findings however indicate that many banks have refused to comply with the apex court order but have rather decided to go by the February 10 deadline for the swap of the new Naira notes as set by the CBN
Going by our Correspondent’s search across Abeokuta metropolis on Tuesday, all the commercial banks visited refused to collect the old notes.
Upon enquiry, two officials of the commercial banks who craved anonymity only told our Correspondent that it was an order from the management of the bank.
Our Correspondent also found out that traders across major markets like Kuto, Omida, Asero among others have also started rejecting the old notes.
Mrs Sarah Williams who sells food items at Kuto market said that she has stopped collecting the old Naira notes since Monday once she got wind of the news that banks have started to refuse the old Naira notes.
She said, “I don’t know who is still collecting the old notes in the market because we have all heard yesterday that banks are no longer collecting them, so, why should we be collecting them because if we do where shall we take them to? That’s where we have found ourselves, we just pray that God will save us in this country,” she said.
It was also gathered that some market women on Tuesday morning protested at the palace of Alake and Paramount ruler of Egba land, Oba Adedotun Gbadegbo saying that the government must find a way to ease their pains.
They complained of inability to access cash to buy their goods, while their trades have also suffered so much as people complained of not having money to spend.
Meanwhile, the State Governor, Prince Dapo Abiodun, has warned that the State government would shut down any Commercial Banks operating in the State that refuse to accept old Naira notes.
The warning is sequel to complaints received from the people by the State Government that commercial banks and some filling stations are rejecting the old Naira notes as legal tender.
The Governor spoke on Tuesday while addressing market men and women at Itoku Kampala market in Abeokuta, as part of his reelection campaign to Abeokuta North Local Government Area.
Abiodun, who frowned at the action of the banks, noted that since the new Naira notes are not available, commercial banks must accept the old notes to ease the suffering of the people.
He called on the people to remain calm, assuring that his government is working assiduously to ensure that the present situation was brought under control.
This just as his Kano State counterpart, Gov. Abdullahi Ganduje, has warned that the State Government will not hesitate to revoke the operational licences of major business owners who refuse to accept the old naira notes as a means of transaction in the State.
Ganduje gave the warning in a statement issued by the commissioner for information and internal affairs, Malam Muhammad Garba, in Kano on Tuesday.
The Governor said that the old naira notes remain legal.
“And how can the people that have paraded themselves as experienced in managing finance, banks, and whatever get us to this kind of situation?”.
He explained that the Supreme Court was emphatic on its interim injunction on the issue of old Naira notes which would continue to be used as legal tender hand in hand with the new ones until the gradual and final phase-out.
Ganduje said that the State Government observed business owners such as supermarkets, malls, banks, restaurants, hotels, traders in markets, filling stations, and motor parks, among others, were in the habit of rejecting the old naira notes in business transactions.
The Governor said that this non-acceptance by selfish individuals is further worsening the already tense situation exacerbated by the non-availability of the new Naira notes.
He said the people have suffered enough untold hardship and therefore, the State Government “would not fold its arms and allow a few selfish elements in our midst to worsen the situation.”
Ganduje called on people of the State to continue with their lawful businesses and report anyone who refuses to accept the old Naira notes to the appropriate security outfit for prompt action.
…Those promoting Naira redesign not sincere – Wike
This is just as Governor Nyesom Wike of Rivers State has maintained that the Naira currency redesign by the CBN is politically motivated and that the stakeholders promoting it are insincere.
Wike said this while receiving a letter of nomination on the award of ‘Independent Man of the Year 2022’ conferred on him by the Independent Newspapers in Port Harcourt, Rivers state, on Tuesday.
He said the shoddy implementation of the Naira swap by CBN has worsened the living conditions of the poor in Nigeria.
He said, “We are in a difficult situation now. It doesn’t matter what anybody may say. Nigerians are suffering now and as a people we owe that responsibility to cushion the hardship Nigerians are facing and not worsen the situation.
“Nobody says, and let it be on record that there is nothing wrong with redesigning our Naira. What we are saying is the implementation will not help, rather it will aggravate the condition that people face, particularly the poor people.”
He said those who insist the Naira swap policy will curb corruption and eliminate vote buying during the general election are not sincere, stressing, “The whole thing is being political, and that is not what it is supposed to be.”
He added, “You have also not made the new one available and then you have said we can’t collect the old one again. Now, you that even have money in the bank, you’re not allowed to even collect your money.”
The Governor observed that those advocating that Nigerians should embrace internet banking have failed to take into cognisance the fact that vast majority of the citizens, particularly in the rural areas don’t have bank accounts.
…Naira redesign policy demarketing strategy for APC – NEF
In its reaction, the Northern Elders Forum, NEF has described the Naira redesign policy of the CBN as a demarketing strategy for the ruling All Progressives Congress (APC) in the forthcoming 2023 general elections.
The NEF spokesman, Hakeem Baba-Ahmed made this assertion on Channels Television’s programme, “The 2023 Verdict.”
He said, “President Muhammadu Buhari has messed up to have allowed this kind of fiasco to happen on the eve of election when you are actually campaigning to have your party voted for.
“This money thing is a major demarketing strategy for the APC. If the worst enemy of APC had design strategy for them to lose this election, he couldn’t have chosen a better strategy and this fiasco around this printing of Naira notes.
“Their own people said it is all contrived to make Tinubu to lose. The Governors even said it was designed to make the candidate lose. The candidate himself says it was designed to make him lose and President Buhari is following him around saying, ‘vote for him.’”
….Naira redesign policy supporters attacked in Abuja
Meanwhile, supporters of the new Naira policy of the Federal Government who were embarking on a peaceful street protest in Abuja, on Tuesday, came under heavy attack by thugs and street urchins suspected to be hired by people opposed to the policy.
The attack came shortly after a group, Civil Society Organizations Central Coordinating Council which is the apex organ of all civil society organizations in the country briefed the press.
Their attackers were wielding machetes, sticks, iron rods, charms and other dangerous weapons.
The attack left many members of the civil society injured.
…Buhari has limited knowledge of economics – Shehu Sani
Meanwhile knocking the Federal Government on the redesign policy, former senator representing Kaduna central, Shehu Sani has said President Muhammadu Buhari has limited knowledge of economics.
Sani who stated this while speaking in an interview on Arise TV on Tuesday, expressed worry that the Naira redesign policy has brought suffering to Nigerians.
According to him, there should have been a wide consultation beyond getting approval from the president before the introduction of the policy, noting that the country is in “a man-made economic turbulence.”
He said, “But what is wrong in this policy is that there should have been a wide consultation. It’s not simply about the CBN Governor going to the President to get his approval over an issue that I believe that the President of the country has limited knowledge of because he is not an economist.
“Secondly, I expected that before such a decision was made, there could have been a wide consultation with the National Assembly and also the civil societies. By doing that, you are carrying the whole country along and then ideas will be crystalised and then problems that may arise will be predicted and then they can be solved.
“But for now, all that we have known was that the Governor of the Central Bank has made it very clear that all he needed was the approval of Mr President and then he got it and now everyone is paying the price.
“Well, to be fair, if this redesigning of the Naira and the cashless policy is about combatting or containing vote-buying, that is a very good initiative. But the fallout or the consequences of it on the other side is that people are suffering, and you don’t know which of the notes to accept.
“They will tell you today you can use the old notes and you go to buy things the money is not available and if you have to use the cashless system, sometimes the alert doesn’t come in time and as such, the whole transaction in the country has become a problem.
“Even our communities in the border areas now are using currencies like the Cefa and other currencies from other countries and then as we have heard people in rural areas have resorted to trade by barter. So, we have just gotten ourselves into an economic turbulence that is man-made, that is designed and then it could have been avoided.
“There was a time when we raised our voice and said you can redesign the Naira, you can implement cashless policy, but why don’t you get ideas from the civil societies, from traders, from marketers, from industrialists, from the economists, from the general public so that we would all be carried along and then everyone will now give his own input on how these issues can be tackled.”
