Abba Hamisu Sani
Africa-Press – Nigeria. The recent announcement made by the Central Bank of Nigeria on it’s plan to redesigned Naira Note and stop the circulation of the existing high denominations that include 200 ,500 and 1000 Naira put so much fear in the minds of Nigerians and generate mix reactions from different commentators.
While addressing Journalist on the reasons behind the decision to redesigned Naira during a press conference on 25th of October Central Bank Governor God’s will Emefele said available data at CBN shows that out of 3.3 trillion currency in circulation 2.7 trillion naira are outside the vault of commercial Banks across the country which is not right.
Emefele also expressed that redesigning of Naira notes would help to curb counterfeit notes, as well as hamper ransom payment to terrorists and kidnappers.
The new design and issues will be effective from December 15, 2022. as the CBN said it
secured approval of President Muhammadu Buhari to roll out new notes to replace the existing currency in circulation.
The Governor added that once the new notes are designed Nigerians are expected to take old notes to banks for the new notes.
Disagreement between CBN and Ministry of finance on redesigning Naira Notes
Few days after the CBN ‘s announcement of it ‘s plan to redesign the Nigeria’s higher denominations ,the Minister of finance Zainab Ahmad said the Ministry of finance is not part of the move ,she only heard the story of CBN plan on media.
She made the disclosure during the budget debate of the Ministry of Finance, Budget and National Planning in Abuja.
The Minister said even though one of the reasons for the decision is to manage inflation, consequences are sure to follow.
“We were not consulted,” she said. “It was an announcement that we heard. Part of the reasons that was advocated is that it is one of the ways to mop up the liquidity to manage inflation”
Zainab added that but there are also consequences we are looking at what the consequences will be?
There will be some benefits but there will be some challenges.
Our Ministry don’t know whether the monetary authorities have actually looked very closely at what the consequences and how they will mitigate them.
Nigerians begin to feel the impact of CBN action as the price of Dollar skyrocketed at the parallel Market.
Few days after the Apex Bank’s expression of plan to replace naira note with redesigned version the value of naira has significantly fall against foreign currencies particularly dollar.
With this development the price of good and services which heavily rely on dollar to naira exchange rate have increased.
The exchange rate of Dollar reached up to 800 naira in black market which is the major source of foreign currency in Nigeria.
Experts reactions on redesigning Naira Notes CBN’s decision
Commenting on the development, former Economic Adviser and Chief Executive Officer of National Planning under President Olusegun Obasanjo, Prof. Magnus Kpaklo said that the exercise would come at a cost, adding, however, that the apex bank must have considered the cost of the change to the economy.
On his part, the Executive Director, Technical, Anchor Insurance Limited, Mr. Adebisi Ikuomola, said that he doesn’t see the development having any tangible effect on the economy or strengthening the naira.
He said the decision come at wrong time and will only succeed in adding more hardship to Nigerians as they struggle to settle their basic needs.
Garba Maryam shares the opinion of the Executive Director Technical Anchor Insurance limited Mr Adebisi Kuomola that resigning the naira will not add any value to the currency.
Ibrahim Garba Maryam said if care is not taken the exchange rate of Naira to dollar will soon reach more than one thousand Naira as people resort to convert their money to dollar to avoid inflation.
The activist added that this decision scared a lot people as they don’t even trust Banks again.
He stated that the CBN fail to follow due process from the initial stage of taking the decision even though CBN act 2007 section 19 has given it the mandate to do such, but after the approval of Board of Directors.
“Now the question begging for answer is that did the board of Directors approve such ,if yes why the Minister of finance said she is not aware of the plan while she is a member of the board ”
He also asked as CBN Governor seek approval from the president did the president take the matter to the federal Executive council.
Garba Maryam expressed worry with days stated by CBN which is less than 30 days how can Nigerians swap their old notes with new one’s within that period considering how Banks are working in Nigeria with few staff and bad Internet services.
He said one of the reasons stated by CBN of redesigning the naira is that more currency are outside the banks ,Garba says People doe’s not have confidence in Banks any more ,so they resort to keep their money outside banks.
Garba Maryam shares the opinion of the Executive Director Technical Anchor Insurance limited Mr Adebisi Kuomola that resigning the naira will not add any value to the currency.
Ibrahim Garba Maryam said if care is not taken the exchange rate of Naira to dollar will soon reach more than one thousand Naira as people resort to convert their money to dollar to avoid inflation.
The activist added that this decision scared a lot people as they don’t even trust Banks again.
He stated that the CBN fail to follow due process from the initial stage of taking the decision even though CBN act 2007 section 19 has given it the mandate to do such, but after the approval of Board of Directors.
“Now the question begging for answer is that did the board of Directors approve such ,if yes why the Minister of finance said she is not aware of the plan while she is a member of the board ”
He also asked as CBN Governor seek approval from the president did the president take the matter to the federal Executive council.
Garba Maryam expressed worry with days stated by CBN which is less than 30 days how can Nigerians swap their old notes with new one’s within that period considering how Banks are working in Nigeria with few staff and bad Internet services.
He said one of the reasons stated by CBN of redesigning the naira is that more currency are outside the banks ,Garba says People doe’s not have confidence in Banks any more ,so they resort to keep their money outside banks.
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