Economy

Nigerians Can’t Wait for Buhari’s Seven Days, Crisis Looming – Experts

Published

10 months ago

February 4, 2023

Eric

By Eric Elezuo

Following the disappearance of naira notes from the Nigerian business circle, human rights lawyer and Senior Advocate of Nigeria, Mr Femi Falana, as well as a professor of Economics, University of Uyo, Edet Akpakpan, have asked Nigerians to reject the request by the President to be given seven days to resolve the new naira scarcity, warning that the patience of Nigerians will not last the proposed seven days, and eruption of crisis may take centre stage.

Speaking with Saturday PUNCH, Falana said it was obvious that the CBN did not print sufficient quantities of the new naira notes, and wondered what magic Buhari planned to perform within seven days.

The lawyer demanded that the CBN should scrap the deadline for the phasing out of the old naira notes, while the old notes it mopped up from circulation should be returned to Nigerians.

He said, “Nigerians can’t wait for seven days. People are fighting in the banks; somebody died in Agbor in Delta; soldiers are attacking students; a woman stripped herself naked because the ordinary people cannot get money. And El-Rufai said somebody collected N500m. No bank has been given N500m new notes! No bank, you can quote me! So, he should name the person, who has not only sabotaged the policy of the government, but has also engaged in money laundering.

“The government wants to dodge responsibilities. The government of the day must take responsibility. Who does Buhari want to consult in seven days? They do not have sufficient new notes. For that reason, they cannot maintain the deadline. So, Nigerians must be allowed to spend the old money, which they have collected from them. The CBN must return the old notes to Nigerians!”

According to Falana, the policy will not stop monetisation of elections as the rich will always have access to naira, while the masses suffer.

He said, “It is a bundle of confusion and it simply confirmed that this was not well thought out. They were just all about preventing monetisation of elections; they didn’t consider the impact on the masses.

“Some of the presidential candidates have banks and bank managers will take the money to their houses. So, it doesn’t stop monetisation of elections. They are just punishing the ordinary people. Have you seen any big man in bank queues for money? The rich can always have money in their homes.”

A professor of Economics, University of Uyo, Edet Akpakpan, urged the Federal Government to resolve the situation to avert imminent crisis.

He also enjoined banks to desist from favouring influential people against the poor through the issuance of higher denominations.

Akpakpan stated, “The idea is good but the implementation is poor as they are not ready. The situation has to be arrested or else it will be terrible, especially as we move closer to the general elections. There is a need for the CBN to make resources available.

“And again the banks should be warned not to be biased with the way the funds are issued. Let them not favour some big men over the common man. We need to stop such things. I support this policy, but the implementation has to be re-organised.”

It would be recalled that Buhari, while receiving the governors voted on the platform of the All Progressives Congress (APC), who paid him a working visit at the Aso Rock Villa, had canvass for a solution to alleviate the hardship Nigerians are going through, said he would need seven days to come out with a decision, blaming banks of compromising the process.

“Some banks are inefficient and only concerned about themselves…even if a year is added, the problems associated with selfishness and greed won’t go away,” Buhari told the Progressive Governors’ Forum members.

The Senior Special Assistant to the President on Media and Publicity, Garba Shehu, disclosed this in a statement titled, ‘President Buhari asks for seven days for a major decision on currency redesign’.

The President said he had seen reports on television about cash shortages and hardship to local businesses and ordinary people, and promised that the balance of seven of the 10-day extension would be used to crack down on whatever stood in the way of the successful implementation.

“I will revert to the CBN and the Minting Company. There will be a decision one way or the other in the remaining seven days of the 10-day extension,” the President was quoted as saying.

The governors had earlier told the President that although they supported his decision to renew the naira, the execution had been botched and their constituents were becoming increasingly upset.

They said as leaders of the government and party in their respective states, they were becoming anxious about a slump in the economy and the series of elections that were coming.

Nigerians await with apprehension what the coming week will unfold as anger has permeated the minds of citizens, the address of Central Bank of Nigeria governor, Godwin Emefiele on Friday notwithstanding.

Additional information: The Punch

Economy

CBN Orders Indefinite Validity of Old Naira Notes

Published

2 weeks ago

November 15, 2023

Eric

The Central Bank of Nigeria has announced its intention to extend the validity of the old N200, N500, and N1,000 noted indefinitely.

This is as the apex bank declared its desire to extend the validity of old naira notes beyond any expiry date. According to the bank, it is working with the relevant authorities to vacate the subsisting court ruling on the same subject.

The bank disclosed this in a statement signed by the Director, Corporate Communications, Isa AbdulMumin, on Tuesday.

The statement titled, ‘CBN To Allow Old Design Naira Banknotes as Legal Tender, Ad Infinitum,’ said the decision is line with international best practices and to forestall a repeat of earlier experiences.

The statement read, “Without prejudice, the Central Bank of Nigeria wishes to inform the general public of its desire to extend the legal tender status deadline of the old design of N200, N500 and N1,000 denominations; ad infinitum.

“This is in line with international best practices and to forestall a repeat of earlier experiences. Thus, all banknotes issued by the Central Bank of Nigeria, in accordance with Section 20(5) of the CBN Act 2007, will continue to remain legal tender, ad infinitum. even beyond the initial December 31, 2023, deadline.

“The Central Bank of Nigeria is working with the relevant authorities to vacate the subsisting court ruling on the same subject. Accordingly, all CBN branches across the country will continue to issue and accept all denominations of Nigerian banknotes, old and redesigned, to and from deposit money banks.

“The general public is enjoined to continue to accept all Naira banknotes (old or redesigned) for day-to-day transactions and handle these banknotes with utmost care, to safeguard and protect the lifecycle of the banknotes. Also, the general public is encouraged to embrace alternative modes of payment, e-channels, for day-to-day transactions.”

This is the third statement the CBN has issued concerning naira notes in recent times. Earlier this month, it clarified that there was no scarcity of naira in the country. Later, it announced that every banknote remains legal tender and should not be rejected by anyone.

The apex bank has had to clear the air on the naira following a March ruling by the Supreme Court that asked the CBN to allow old N200, N500, and N1,000 notes to continue as legal tender till December 31, 2023, after the bank announced a new naira design policy and expiration dates for the denominations.

The former Governor of the Central Bank of Nigeria, Godwin Emefiele, in October 2022 disclosed a plan to redesign some naira denominations (N200, N500, and N1000 notes) and reduce currency circulation.

According to Emefiele, the currency move was to control currency in circulation as well as curb counterfeit currency and ransom payments to kidnappers and terrorists. He stated that the existing old N200, N500, and N1,000 notes would retain their legal tender status until January 31, 2023.

The apex would later extend its deadline until February 10, 2023, but the Zamfara, Kogi, and Kaduna state governments would on February 3 file a suit against the Attorney-General of the Federation on the policy.

Lagos, Ondo, Ekiti, Kano, Sokoto, Ogun, and Cross River would later join the suit as co-plaintiffs. In a ruling in March 2023, the Supreme Court invalidated the new naira design policy because it was not done with due consultation and in line with constitutional provisions.

With this new CBN directive, Nigerians can now expect to spend old N200, N500, and N1000 beyond December 2023.

The National President, Association of Mobile Money and Bank Agents in Nigeria, Victor Olojo, recently told The PUNCH, “The new decision of the Central Bank of Nigeria to retain both the old and new notes is a good and positive development, particularly coming out to clear the speculations before December that was initially set, at least to forestall the scarcity issue that happened earlier in the year.”

The Punch

Economy

Crude Oil: We’ve Secured License to Refine 300,000bpd – Dangote

Published

2 weeks ago

November 13, 2023

Eric

Africa’s richest man, Aliko Dangote, has said his refinery has secured a licence to refine more than 300,000 barrels of Nigerian crude per day and will begin to process gasoline soon.

“We don’t want to start our refinery with foreign goods, we want to start with the Nigerian crude,” Dangote said in an interview in Riyadh on the sidelines of the Saudi-Nigeria business roundtable, according to Bloomberg.

“We’re more than ready and you will see our gasoline products soon,” he added.

The refinery was supposed to start production in August but missed that target in addition to several other over the years. But Dangote insists that his refinery will start producing “very very soon.”

The refinery’s first priority is to supply gasoline to Nigeria before exporting to elsewhere, including the West African region, he said.

Dangote Petroleum Refinery was importing crude oil and expected its first cargo in about two weeks, according to the Executive Director, Dangote Group, Devakumar Edwin.

The report stated that though the Nigerian National Petroleum Company Limited trades crude oil on behalf of Nigeria, in an interview with S&P Global Commodity Insights at the time, Edwin revealed that the NNPCL had committed its crude to other entities.

The Punch

Economy

Sad Tale of the Naira, Now Sells at N1, 210 to Dollar

Published

1 month ago

October 24, 2023

Eric

The national currency, Naira, has reached a new low in its weeks-long downward spiral, plummeting to a staggering N1210 against the U.S. dollar in the parallel market.

The alarming depreciation, as published by Aboki FX, casts a shadow of uncertainty over the nation’s economic stability.

The persistent decline of the Naira is a source of concern and a spotlight on the challenges associated with President Bola Tinubu’s fiscal policies.

Despite the far-reaching consequences, including inflation and diminished economic purchasing power, Tinubu has undertaken what his cabinet refers to as strategic moves, such as the petrol subsidy removal, which was met with resistance and scepticism but reflects an attempt to reduce the government’s financial burden and promote a more market-driven economy as well as the decision to adopt a clean float foreign exchange management.

The presidency says the measures will allow the naira to establish its value through the open market forces.

On September 26, the Naira witnessed an unprecedented historical low, dipping to N1000 against the U.S dollar. Since then, the currency has lost 17 per cent of its value.

The devaluation has made foreign exchange transactions inaccessible, especially in the parallel market, where a substantial percentage of the country’s financial transactions occur.

The repercussions of the currency depreciation are far-reaching. It affects businesses and citizens grappling with rising prices and economic uncertainty.

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