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Tag: Naira redesign

  • Naira redesign: Abuja ACCI wants deadline extended

    Naira redesign: Abuja ACCI wants deadline extended

    The Abuja Chamber of Commerce and Industry (ACCI) has appealed to the Central Bank of Nigeria (CBN) to extend the deadline for the non-continuation of the use of the current currency notes.

    The President of ACCI, Dr Al-Mujtaba Abubakar, made the appeal in a statement he issued on Tuesday in Abuja in reaction to the recent announcement by the CBN on the redesigning of the country’s currency.

    According to him, there have been various reactions from experts on the policy and while some experts agree with the CBN’s strategic objectives for the exercise, others differ.

    “As a chamber, we recognise the advantages of this policy to include improvement in the integrity of the currency, curbing inflation, the efficiency of its supply and strengthening the strategy to conduct monetary policy, among others.

    “However, we are not unaware of the cons of this policy on the national economy, specifically to the Micro Small and Medium Enterprises (MSMEs).

    “We would recommend to the apex bank to intensify public awareness campaign on the need for people and businesses to transit cash outside the banking system to the banks,’’ he said.

    Abubakar explained that the sensitisation would allay the fears of Nigerians, deepen the buy-in of the citizenry and build national support for the implementation process.

    According to him, at the same time, the CBN should extend the deadline for the non-continuation of the use of the old currency notes.

    “The chamber would also advise the CBN to provide financial and non-financial interventions (support) to cushion any likely negative impact this policy may have on businesses,’’ he said.

    The president also said that the CBN, working with other stakeholders in the financial services eco space, needed to sustain and aggressively pursue and expand financial inclusiveness to cover unbanked segments of the society.

    “This can be achieved through new procedures that match the peculiarities of the informal economy.

    “The banking establishments also have a duty to harmonise bank charges associated with cash deposits,” Abubakar said.

    Newsmen recall that the CBN said that the redesigned Naira notes would be released by Dec. 15, adding that existing ones would cease to be regarded as legal tender by Jan. 31, 2023.

  • Naira redesign: Senate mandates committee to ensure Nigerians are protected

    Naira redesign: Senate mandates committee to ensure Nigerians are protected

    Senate has mandated its Committee on Banking, Insurance and other financial institutions to embark on an aggressive oversight to ensure Nigerians are adequately protected from operations of CBN, banks on implementation of the naira redesign policy.

    Senate resolution was sequel to a motion passed at plenary on Wednesday”on the redesign on the new naira notes by the CBN and call for legislative support.”

    The motion which was a point of order, was sponsored by Sen.Uba Sani(APC-Kaduna.)

    Uba, while presenting the motion said currency management was a key function of the CBN.

    He said the integrity of the naira and efficient supply of bank notes are indicators of a performing central bank, especially in a predominantly cash based economies such as Nigeria.

    He said that currency management in recent times in Nigeria had faced series of challenges and affected the ability of CBN to efficiently carry out its mandate of legal tender to members of the public.

    He said the challenges were primarily centred around wholesale hoalding of the naira bank notes by members of the public .

    According to him, available statistics showed that cash outside the Nigerian banks consists of over 80 per cent of currency in circulation as at the end of June 2022.

    Sani noted that the data indicated that N2.72 trillion out of the N3.26 trillion currency in circulation was outside the domain of commercial banks across the country.

    He said recent developments in computer technology and printing device has made the production of counterfeits money relatively easy, there by increasing the potential threats of counterfeiting.

    According to him, the banks in recent years has recorded a consistent rise of incidences of counterfeiting of the naira with N500 and N1,000 denominations bank notes.

    He said the redesign of the currency notes would help make the monetary policy more efficacious, while further help in curbing the depreciation of the naira

    “The redesign would assist in curbing the terrorist access for funds as ransom as the movement of funds would be tracked easily by the banks.”

    He said although Nigerians have legitimate concerns for the time flame to comply with the policy, there was need for Nigerians to comply, given the importance of the policy to the economy at the moment.

    The minority leader, Sen Philip Aduda (PDP-FCT),who second and supported the motion said the redesign of the currency by law was to be done every 10 years.

    He, however, said the vulnerable in the rural communities should be assisted by the banks during implementation of the policy, as many of the people do not practice modern banking operations.

    Aduda said there was need for the CBN to embark on massive sensitisation and enlightenment on the naira redesign in the rural areas, saying that many rural dwellers were not aware of the policy.

    Other senators who supported the motion and shared the sentiments of Aduda on the fate of the rural dwellers on the naira redesign included Senators Sabi Abdullahi (APC-Niger),James Manager(PDP-Delta) Ali Ndume(APC-Bornu), Barau Jibril (APC-Kano) and Chukwuka Utazi(PDP-Enugu).

    Sen.Biodun Olujimi(PDP-Ekiti)said one month timeframe was too short for Nigerians to transfer the cash at their disposal to the commercial banks.

    According to her, caution should be taken not to shot down the economy given the timeframe for the implementation of the policy.

    Sen. Betty Apiafi (PDP-Rivers)asked retorically, if the naira redesign policy would further improve the economy,adding that there was need to get clarification on its effect on the economy from CBN before implementation.

    Sen.Orji-Uzor Kalu (APC-Abia) called for the extension of the time frame to April 31, given the festive period, as Nigerians would be occupied with serveral activities, and many be struggling to meet up with the time line given by the CBN.

    Sen.Gabriel Suswan(PDP-Benue) said it would be ridiculous for the Senate to give legislative support for a policy that has been concluded on implementation by the CBN.

    Suswan expressed reservation on the announcement of the naira redesign, adding that it resulted in an increase on the inflation level in the country.

    Other resolution passed by the senate on the motion was to provide legislative support for the redesign of the new bank notes by CBN.

    It also encouraged Nigerians and the general public to comply with the CBN directives to deposit cash at their respective commercial banks within the timeline.

    It also resolved to support the decision of the CBN, given the benefits of the currency redesign to the nation.

  • Naira redesign is Buhari’s best policy – CONPAGG

    Naira redesign is Buhari’s best policy – CONPAGG

    A group known as the Conference of Nigerians for Peace and Good Governance (CONPAGG) eulogised president Buhari, saying the Naira redesign would be his best decision since taking over as the country’s president.

    However, the group called on Buhari to follow the Naira redesign by restructuring the security architecture of the country.

    CONPAGG also advised the president to change the National Security Adviser, NSA Babagana Monguno, and other service chiefs with immediate effect.

    The call was contained in a statement signed by the group’s National Coordinator, Dr Gbenga Olusegun and Director of Women Empowerment, Dr Mrs Zainab Maikanti.

    TheNewsGuru.com recalls that CBN governor, Godwin Emefiele, had announced the redesigning of Naira, from N200 to the highest denominations.

    The present naira design is meant to cease to be legal tender as from January 31st, 2023.

    However, CONPAGG has come out to say that the goal of redesigning the Naira would be defeated if the nation’s security sector is not rejigged and manned by capable hands ahead of the 2023 general elections.

    The statement reads in part: “This landmark step (Naira redesign) will no doubt help to reduce inflation, currency counterfeiting and excess cash in the hand of desperate and criminal politicians who had stockpiled cash to rig the 2023 general election.

    “However, we wish to raise a serious major red flag which is the issue of insecurity and terrorism in the country. If this is not addressed within days, the entire intent and purpose of the Naira redesign would have been defeated; particularly as it affects the 2023 general election.

    “The president must, therefore, compliment the new economic policy with the immediate sack of the National Security Adviser, NSA Babagana Monguno and all the service chiefs as well as heads of other security agencies.”

    The group further added that the total overhaul of the security and economic policy, ahead of the next year’s general elections, would help stabilize the country before the president leaves office.

  • Naira Redesign: CBN discloses where new notes will be printed

    Naira Redesign: CBN discloses where new notes will be printed

    The Central Bank of Nigeria has noted that there is no plan to print the redesigned naira notes outside the country.

    This was made known by the Central Bank of Nigeria (CBN) Board member on Thursday in Abuja.

    According to CBN Governor, Godwin Emefiele, the N1000, N500 and N200 will be redesigned as part of measures to tackle counterfeits notes and some other vices in the country.

    There were speculations flying around that the redesigned notes will be printed outside the country but the board member has now dismissed the story.

    “All the new currency notes are printed in Nigeria by the Nigeria Security, Printing and Minting Company (NSPMC), so I do not envisage printing outside the country,” the Board member told pressmen in confidence.

    He, however said that he has no idea of the cost for printing the new currencies for now. But he assured that the cost is “something that can be accommodated in view of the expected benefits of the re-designed notes”.

    Making clarifications on the gap in communication between the CBN and the minister of finance on the decision to redesign some denominations of the naira, the CBN Board member insisted that “the CBN Governor did not take the decisions on currency redesign alone”.

    According to the Board member, “at present, the Board of the CBN has not been inaugurated even though the Senate has confirmed the re-appointment of the members. Until the Board is inaugurated, it cannot sit”.

    He went on to add that “in the interim, the President who is the Supervisor of the CBN, acts on behalf of the Board. This is why the Governor went directly to the President for approval of the redesign.

    However, Nigeria’s president Muhammadu Buhari has backed the redesigning of the naira notes that will go into circulation from December 15th.

  • Analysis: benefits, criticisms and fears of CBN’s naira redesign

    Analysis: benefits, criticisms and fears of CBN’s naira redesign

    The plan to redesign Nigeria’s currency has been a subject of public concern and debate since last week when it was announced by the Central Bank of Nigeria (CBN) as part of its currency management responsibilities aimed at preserving the integrity of a local legal tender, the efficiency of its supply and conduct of monetary policy.

    According to the apex bank, the redesign and redistribution of the N1000, N500 and N200 denominations, will be concluded within three months from 26th October, 2022 and the existing currencies shall cease to be legal tender by 31st January, 2023.

    The CBN Governor Godwin Emefiele, said in view of the continually evolving circumstances that could impinge the optimal performance of the Naira, the move to redesign the currency would ensure a strong and effective legal tender for the country, in line with its mandate as contained in Section 2(b) of the CBN Act 2007.

    Emefiele listed other benefits including: curbing the hoarding of banknotes, minimising incidents of terrorism and kidnapping, entrenching a cashless economy and improving financial stability, as well as reducing the ease and risk of currency counterfeiting evidenced by several security reports.

    “As at the end of September 2022, available data at the CBN indicate that N2.73 Trillion out of the N3.23 trillion currency in circulation, was outside the vaults of Commercial Banks across the country; and supposedly held by the public,” the CBN Governor said.

    The Controversies

    Barely two days after the announcement by the CBN, the Minister of Finance, Budget and National Planning Zainab Ahmad, said she was not consulted by the CBN and that the timing of the redesign policy portends serious consequences on the value of the Naira against other foreign currencies.

    The Governor of Edo State Godwin Obaseki, also said that the proposed plan to redesign naira notes was political and has no basis in economics, stressing that the priority of the government should be ensuring that the problem of hunger and starvation is solved.

    “I am an economist and I can tell you categorically that this policy by the CBN and Federal Government has no basis in economics. There is no reason to do this; this is purely political,” Obaseki said. TheNewsGuru.com (TNG) recalls that in April 2021, the Governor also accused the CBN of “financial rascality”, saying it printed N60 billion to augment allocations shared by states in the previous month.

    Responding to the Minister’s comments, the spokesman for the CBN Osita Nwanisobi, insisted that the Bank followed due process in securing the approval of the President in line with provisions of Sections 2(b), section 18(a), and section 19, Subsections a and b of the CBN Act 2007.

    Nwanisobi further explained that the redesign policy was long overdue, as the standard practice globally was for central banks to redesign, produce and circulate new local legal tender every five to eight years, whereas, the CBN had not redesigned the naira in the last 20 years.

    Similarly, a former CBN Deputy Governor Kinglsey Moghalu, said the CBN was performing its statutory responsibility as the “sole” institution responsible for the issuance and management of the naira and did not need to consult the Minister of Finance.

    “CBN is doing its job in saying they have come to a judgement that the time has come to redesign the naira notes. The Ministry of Finance does not supervise the central bank of Nigeria, it is part of the offices that supervise the economy,” he clarified.

    Moghalu also pointed that the CBN Board of Directors which is one two decision-making phases of the Bank, has the Ministry of Finance’s Permanent Secretary as member, and it was therefore impossible for the Ministry to claim ignorance of the policy.

    Other concerns about the naira redesign

    The Muslim Rights Concern (MURIC) insisted that the Arabic Ajami inscription on the proposed naira notes was a precondition of its acceptance and support of the policy.

    “MURIC hereby expresses its support for the project with the proviso that all the denominations must contain Arabic inscriptions just as they had been before Arabic Ajami was conspiratorially and unjustly removed from some denominations,” Director of the group Ishaq Akintola, said in a statement on Tuesday.

    Nigerians in other quarters have expressed fears about what the currency redesign means for the common man and the impact it would have on the economy. For example, many are worried that the redesign could further weaken the naira against the dollar and worsen the food inflation rate in the country which currently stands at 23.34 per cent on a year-on-year basis as at October.

    A Nigerian working with the Bank of England James Eluwa, pointed that the decision to redesign the naira notes to curb corruption was a good one but the timing by the CBN policy was ill-timed.

    “The economy is already much pressured; inflation is at 20.77%. The CBN should have done more to reduce the inflation rate first, that will help to ensure a more balanced economy, monetary and financial stability in the country before thinking of redesigning of the Bank notes,” he suggested.

    Similarly, an accountant Angel Chibuzo, told this newspaper that the policy will have no impact on those it was intended for and will only worsen the situation of the already poor and suffering masses.

    “The so-called big man keeping his money at home work with the banks. They can just call the bank manager to swap their old notes with the new ones for a commission. Were we not in this country when the APC presidential aspirant moved bullion vans to his house during last election? What came out of it?”

    Jamil Danbedee added that the timeframe given for the full implementation of the policy was too short and could affect legitimate businesses, as many business owners were still unbanked and prefer to stash monies in their local safes.

    “This is also the best time for deposit money banks to get in new customers which will grow their balance sheets, give them more profits and maybe more jobs to the teeming and hardworking youths of this nation! A win-win situation maybe,” he Danbedee said.

    A trade and investment expert, Ikenna Nwosu, has said the decision of the Central Bank of Nigeria (CBN) to redesign some naira notes will increase the dollarization of the Nigerian economy and called for collaboration of all stakeholders int he financial sector to address this potential challenge.

    Benefits of the naira redesign policy

    Despite the fears and criticisms of the naira redesign policy, President Muhammadu Buhari says he is fully in support of the move, as he was convinced that the gains from the policy, which includes a reduction in inflation, currency counterfeiting and mop-up of excess cash in circulation, outweighed its demerits.

    Buhari added that he did not consider the period of three months for the policy implementation as being too short, as he expects businesses with legitimate incomes should face no difficulties making the transition.

    As part of the benefits of the policy, all Deposit Money Banks in the country have been directed to suspend bank charges for cash deposits, which was introduced in September 2019, as part of measures to drive the country’s cashless policy.

    In addition, the CBN has directed banks to keep open, their currency processing centers from Monday to Saturday so as to accommodate all cash that their customers will return.

    Photos and videos of hoarded naira notes released into the economy have now emerged online, showing that the policy was already serving one of the intended purposes. In one of the videos, clean N200 bills printed in 2003, were seen with matching serial numbers, indicating they had never been used for the past 20 years.

    The Economic and Financial Crimes Commission (EFCC) has also raided Bureau De Change operators in Abuja and Kano state and made several arrests in order to prevent further decline of the naira against the dollar in the currency black market.

  • Naira Redesign: CBN governor, Emefiele speaks on removal of Arabic inscriptions

    Naira Redesign: CBN governor, Emefiele speaks on removal of Arabic inscriptions

    The Central Bank of Nigeria, (CBN), Governor, Godwin Emefiele has assured that Arabic inscriptions on the naira note would still reflect on the newly designed ones.

    This was put in the public domain by the former Emir of Kano, Muhammadu Sanusi.

    Sanusi noted that the CBN governor confided in him that the Arabic wordings will not be removed on the new notes by the time they are released.

    Recall that last week, the CBN announced it has redesigned the N200, N500 and N1000 notes, which will come into effect, on December 5th, 2022.

    Mixed reactions greeted CBN’s announcement as some Islamic scholars alleged that redesigning the naira was a plot to remove the Islamic inscription.

    Amid suspicion by Islamic scholars, some Nigerians urged the apex bank to remove the inscription from the redesigned naira.

    Reacting, Sanusi urged Islamic leaders to verify their information and stop unsubstantiated claims.

    “There has been speculation going round about the change of some naira notes. I heard various scholars commenting, with some implying that the Ajami on the naira notes would be removed.

    “Since the issue came up, we have spoken to some people in the Central Bank, and they confirmed to me that such a plan is non-existent.

    “When the misconception became widespread, I spoke to the CBN governor himself, and he also confirmed to me that there is no plan whatsoever to remove the Ajami.

    “So, I want to appeal to Islamic scholars to please stop acting on unsubstantiated reports,” he told Daily Nigerian.

  • Rights Activist, Richard Akinnola describes CBN’s Naira redesign policy as “financial coup”

    Rights Activist, Richard Akinnola describes CBN’s Naira redesign policy as “financial coup”

    A veteran Journalist and Rights Activist, Richard Akinnola, has described as “financial coup” the decision of the Central Bank of Nigeria, CBN, to launch new designs and replace high value Naira notes, without informing the Minister of Finance, Budget and National Planning , Zainab Ahmed.

    Recall that the Minister had dissociated herself from the Naira redesign policy fixed for December 15, 2022 by the CBN.

    Akinnola, on social media, stated: “If the current Finance minister was not informed about the present change, l can understand. It was a financial coup that must not leak. Besides, the CBN is an independent institution.”

    He explained that during the currency change of 1984, “the arrangement was basically between the Head of state, Major-General Buhari and the CBN Governor, If I’m not mistaken, Abdulkadir Ahmed.”

    According to him, though, that exercise was more sudden in its implementation than the present one.

    “Years later, l later learnt that Buhari told the then CBN Governor that if the exercise leaked, it must have been from the CBN Governor’s end. I learnt that even the Chief of staff, Tunde Idiagbon was not in the know. So, if the current Finance minister was not informed about the present change, l can understand. It was a financial coup that must not leak. Besides, the CBN is an independent institution,” Akinnola said.

    TheNewsGuru.com (TNG) reports that President Muhammadu Buhari on Sunday voiced his support for the decision of the CBN to launch new designs and replace high value Naira notes.

    This was as he noted that the nation would gain a lot by the new initiative, especially its impact on illicit monies.

    According to a statement signed by his Senior Special Assistant on Media and Publicity, Garba Shehu, Buhari spoke in a Hausa radio interview with the famous journalists, Halilu Getso and Kamaluddeen Shawai, to be aired Wednesday Morning on Tambari TV on Nilesat.

    The statement is titled ‘CBN has my backing in replacing Naira notes, says President Buhari.’

    “Buhari said reasons given to him by the CBN convinced him that the economy stood to benefit from reduction in inflation, currency counterfeiting and the excess cash in circulation.

    “He said he did not consider the period of three months for the change to the new notes as being short,” the statement read.

    The President added that ”People with illicit money buried under the soil will have a challenge with this but workers, businesses with legitimate incomes will face no difficulties at all.”

    According to the CBN, the existing notes would cease to be regarded as legal tender by January 31, 2023.

    Explaining the development, CBN Governor, Dr. Godwin Emefiele, lamented that 85 percent of the currency in circulation is being hoarded by Nigerians.

    He urged Nigerians to deposit their Naira notes, adding that the deposit fee would be waived for transactions below N150,000.

    Emefiele added that the redesigning of Naira notes would help to curb counterfeit notes, as well as hamper ramson payment to terrorists and kidnappers.