Respite came for Nigerians as President Muhammadu Buhari yesterday in Daura, Katsina State, approved the extension of the ongoing currency swap by 10 days.
The president directed the governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, to move the deadline from January 31, 2023 to February 10, 2023.
A statement issued by presidential spokesman, Femi Adesina, noted that Buhari gave the approval at a meeting with the the CBN governor, urging more time, discretion and order to enable Nigerians successfully change their currencies to the redesigned notes, and reduce the risk of loss, especially among the underserved in rural areas.
Briefing journalists after the meeting, the CBN governor said the currency swap had achieved more than 75 per cent success rate of the N2.7 trillion held outside the banking system, with evident drop in rate of inflation, more stability of foreign exchange rates, and noticeable impact on security, especially in banditry and kidnapping figures.
"First, I will like to thank Mr. President for giving the CBN the approval to embark on this ambitious programme because, like I said, in the past, the CBN has not had the opportunity to embark on such currency redesign programme in last 19 years and indeed, let me emphasize, that only an incorruptible leader of the President's stature can give such approval to the CBN," he said.
The CBN governor noted that redesigns were supposed to be every five to eight years.
Emefiele stated: "Our aim is mainly to make Monetary Policy Decisions more efficacious and as you can see; we have started to see inflation trending downwards and exchange rates relatively stable.
"Second, we aim to support the efforts of our security agencies in combating banditry and ransom taking in Nigeria through this programme and we see that the military are making good progress in this important task".
The head of the apex financial regulator said available data had shown that currency-in- circulation in 2015 was only N1.4 trillion, while as of October 2022, currency in circulation had risen to N3.23 trillion, out of which only N500 billion was within the banking industry.
He said N2.7 trillion was held permanently in people's homes.
"Ordinarily, when CBN releases currency into circulation, it is meant to be used and after effluxion of time, it returns to the CBN thereby keeping the volume of currency in circulation under the firm control of the CBN.
"So far and since commencement of this programme, we have collected about N1.9 trillion; leaving us with about N900 billion (N500 billion + N1.9 trillion)," Emefiele said.
According to him, to achieve effective distribution of the new currency, the CBN has taken some steps.
He said several meetings were held with Deposit Money Banks and they were provided with Guidance Notes on processes they must adopt in the collection of old notes and distribution of the new notes, including directives that new notes should be loaded in ATMs nationwide for equitable and transparent mechanism.
The CBN governor explained that the regulatory body worked with the media, print and broadcast, and the National Orientation Agency (NOA) for sensitisation of citizens, while 30,000 Super Agents were deployed nationwide, particularly in rural areas, regions underserved by banks and to reach the weak and vulnerable for currency swap.
To ensure compliance, Emefiele said staff members, mostly assistant directors, deputy directors and directors in Abuja were sent to all CBN branches nationwide to join the mass mobilisation campaign and monitoring programmes.
He said breaches of the programme had been reported to the EFCC and ICPC for further action.
"Aside from those holding illicit/stolen Naira in their homes for speculative purposes, we do aim to give all Nigerians that have Naira legitimately earned and trapped, the opportunity to deposit their legitimately trapped monies at the CBN for exchange.
"Based on the foregoing, we have sort and obtained Mr President's approval for the following: A ten-day extension of the deadline from January 31, 2023, to February 10, 2023; to allow for collection of more old notes legitimately held by Nigerians and achieve more success in cash swap in our rural communities after which all old notes outside CBN losses their legal tender status," the CBN governor explained.
Emefiele said a seven-day grace period had been given by the President, beginning from February 10 to February 17, 2023, in compliance with Sections 20 (3) and 22 of CBN Act allowing Nigerians to deposit their old notes at the CBN after the February deadline.
The CBN governor said the excuse of security threats pushed by Kano State governor, Abdullahi Ganduje, had no bearing on the swap, which had achieved compliance and recorded huge success across the country.
"I don't understand the relationship between the CBN policy and security challenges in Kano State," he added.
He noted that all new currencies had security features that make it easy for tracking to bank branches, and the process had begun to deal with defaulters and those who breached the programme.
"Even if they are CBN staff, they will be sanctioned," Emefiele warned.
Reps Kicks, Insist On Full Compliance With Section 20 Of CBN Act
In a swift reaction, thad-hoc committee of the House of Representatives on new naira re-design and naira swap policy has rejected the ten-day extension granted by the CBN for the exchange of old naira notes.
The chairman of the committee and House Leader, Hon Alhassan Ado Doguwa, insisted that the apex bank must comply with sections 20 sub- sections 3, 4, and 5 of the CBN Act.
Doguwa in a statement said, "The 10-day extension for the exchange of the old naira notes is not the solution: We as a legislative committee with a constitutional mandate of the house, would only accept clear compliance with section 20 sub-sections 3, 4, and 5 of the CBN Act and nothing more.
"Nigeria as a developing economy and a nascent democracy must respect the principle of the rule of law. And the House would go ahead to sign arrest warrant to compel the CBN Governor to appear before the Ad-hoc committee."
The House Leader added that his committee would continue its work until it gets the demands of Nigerians addressed in accordance with the laws of the land.
He described the extension as a mere political gimmick to further deceive Nigerians and worsen their economic and social livelihood. Adding that the CBN governor must appear before the committee or stand the risk of being arrested on the strength of legislative writs signed by the Speaker.
He also said the policy was capable of frustrating the forthcoming general elections.
"Security agencies and their operations especially at the states level are generally funded through cash advances and direct table payments of allowances to operatives during elections," he said.
But, the minority caucus in the House applauded the CBN for listening to Nigerians and extending the deadline for swapping the old naira notes for new ones by 10 days.
The minority leader, Hon Ndudi Elumelu in a statement said the 10 days extension of the deadline from January 31, 2023, to February 10, 2023, was a welcome decision to ease the suffering as well as social and economic discomfort being faced by many Nigerians in accessing the new naira notes within the earlier stipulated deadline.
"As lawmakers and representatives of the people, our caucus commends the CBN for being considerate towards the wellbeing of Nigerians; which is the essence of democratic governance all over the world.
"Our caucus applauds the Presidential Candidate of the Peoples Democratic Party (PDP), His Excellency, Atiku Abubakar, for his intervention in persuading President Muhammadu Buhari and CBN to extend the earlier deadline in the national interest," he said.
Elumelu also supported the position of former vice president and presidential candidate of the PDP Alhaji Atiku Abubakar.
APC Presidential Campaign Applauds President, Emefiele
The presidential campaign council of the All Progressives Congress (APC) has commended President Muhammadu Buhari and the Central Bank of Nigeria (CBN) governor, Godwin Emefiele, for extending the deadline for the use of old naira notes.
It particularly thanked the president for demonstrating statesmanship by approving the extension of the deadline by one week, saying it would avert the panic that would have followed.
In a statement signed by its director of Media and Publicity, Bayo Onanuga, the APC campaign team also showered praises on the APC presidential candidate for what it described as his forthrightness in addressing the concerns of Nigerians during his campaign rally in Abeokuta last week.
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It said the former Lagos State governor did not shy away from showing leadership and compassion for the welfare of Nigerians.
Onanuga said, "Asiwaju Tinubu didn't take the easy road by shying away from what would have caused serious inconvenience for our teeming masses.
"Asiwaju showed leadership and compassion for the welfare of Nigerians, at the most appropriate time".
Hailing Buhari and Emefiele, the APC presidential campaign team said, "We want to commend the Central Bank of Nigeria and Governor, Mr. Godwin Emefiele for listening to the voice of well meaning Nigerians on the exigency of extending the deadline for change of old N200, N500 and N1000 naira notes to the new ones.
Don't Allow 'Bullion Van Politician' Hijack New Notes, Atiku Tells CBN
In his reaction, the Peoples Democratic Party (PDP) presidential candidate, Atiku Abubakar, asked the CBN to ensure the new naira notes are hijacked by "bullion van politicans."
Atiku reacted to the extension of the deadline for submission of old notes through the spokesman of his presidential campaign council, Kola Ologbondiyan.
Ologbondiyan, on his twitter handle, said Nigerians have Atiku to thank for the deadline extension following his patriotic appeal to the federal government two days ago.
He added that unlike Atiku, Tinubu who had also commented on the new notes policy during his campaign in Ogun State was concerned about himself.
Ologbondiyan tweeted: "Nigerians have @atiku to thank for his patriotic appeal to the Federal Government to extend the deadline for the submission of the old naira notes.
"The difference between @atiku and @OfficialABAT had always been magnificently clear.
"While it is always about patriotism and the feelings of Nigerians for @atiku, it is always about the self for BAT.
"@cenbank must monitor the distribution of the new notes during this extended period and ensure that the bullion van politician does not hijack the new notes," he said.
