The presidential candidate of the Labour Party, Mr. Peter Obi has appealed to Nigerians to exercise patience with the federal government and Central Bank of Nigeria over the challenges associated with the circulation of the new banknote, just as he appealed to the banking sector regulator to expedite action with its circulation.
This was just as the Group Managing Director and Chief Executive Officer of United Bank for Africa (UBA) Plc, Mr. Oliver Alawuba, at the weekend expressed support for the naira redesign project of the CBN, saying the apex bank and deposit money banks (DMBs) were working towards addressing challenges associated with the project.
However, the presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, yesterday alleged that some bank executives were conniving with the ruling All Progressives Congress (APC) to frustrate the distribution of the new naira notes in a bid to frustrate the policy.
Speaking also on the matter, Kwara State governor, Alhaji AbdulRahman AbdulRazaq, called for more supply of the new naira notes to ease things for the masses and stabilise the currency swap policy.
But the National Chairman of the All Progressives Grand Alliance (APGA), Chief Victor Oye, has argued that contrary to the notion that the introduction of new naira notes would checkmate vote buying during forthcoming elections, politicians who are used to the act may still find ways to engage in the criminal act.
The Manufacturers Association of Nigeria (MAN) projected that the bottleneck militating against the effective implementation of the policy would cost manufacturers a 25 per cent decline in sales of manufactured products.
Obi, who spoke on Arise News Channel, yesterday, admitted that currency redesign was not peculiar to Nigeria and that it has long time economic and societal benefit but with a short time inconveniences and pain.
While calling on people of Nigeria to cooperate with the federal government and the CBN in addressing difficulties that come with the exercise, he called on the apex bank and other commercial banks to expedite action to make the new notes available to the various classes of the society, especially the masses and the unbanked.
Speaking further, the presidential candidate stated that there was nowhere the exercise would take place that would not come with some hitches.
He cited the example of India when the Asian country embarked on similar currency redesign and how Indians encountered difficulties during the process, which according to Obi later yielded a bountiful long term economic advantage for the people and their country.
"Currency redesign is not peculiar to Nigeria. This is an exercise that has long-term economic and social benefits, but comes with short-term inconveniences and pain. My appeal to Nigerians is that we should have patience with the federal government and the CBN, while at same time appealing to the CBN and the banks to expedite actions that would ensure that these new currencies are available to small depositors, small businesses, the unbanked and people in rural areas.
"I believe the CBN can make it available as quickly as possible. Everywhere there have been redesign of currency in a third world country, it comes with challenges and in some instance riots.
"Look at what happened in India, there were riots. But today, India is better off and their economy benefitted better. This policy was announced on 26th of October, 2022 and they gave extra 10 days and all of a sudden people are rioting and behaving as if it came overnight.
"For me, it is the poor people I see on the queues that we should quickly deal with as quickly as possible and I urge the CBN to deal with the issue of the low depositors and those who live in rural and unbanked areas. It is critical and it is important. I am also urging Nigerians to bear with them. We have redesigned our currencies, we can't do anything about it. Government has taken a decision and we can't be using two currencies at same time. So, the decision has been taken, let's run with it."
UBA GMD: CBN, Banks Addressing Challenges Associated with New Disbursement
In a related development, Alawuba at the weekend expressed support for the naira redesign project of the CBN, saying the apex bank and deposit money banks (DMBs) were working towards addressing challenges associated with the project.
Alawuba, who said redesigning of the N200, N500 and N1000 denominations would support monetary policy, however, pointed out that the hardship Nigerians are currently passing through would easy off soonest.
Speaking after being conferred with an honorary doctoral degree in Banking and Finance at the 8th convocation ceremony of the Imo State University, Owerri, he said the new policy would stabilise the naira.
Alawuba assured that banks were working assiduously with the central bank to address the present hardship faced by Nigerians in accessing the new naira notes.
He said, "The redesign of the naira is a positive policy that will support the economy in the long run. It's true that we are passing though transition period and I believe that the CBN is working with banks to make sure that the aspiration and purpose of the redesign come into fruition for the good of the country."
On the allegations that the banks were are frustrating the intentions of the naira redesign, Alawuba urged Nigerians to focus rather on the positive sides of the policy.
He urged private sector to work in harmony with the public sector to ensure that the purpose of the naira redesign was achieved.
Whilst congratulating Alawuba, the Vice Chancellor, Prof. U.U. Chukwumaeze pointed out that the conferment was in recognition of Alawuba's contribution to redefining Public Sector Banking in Nigeria and across Africa.
"The honour is in recognition of your numerous contributions to the financial sector in Nigeria and Africa and as one of the major drivers who contributed to taking modern banking to all state capitals and major cities in Nigeria where hitherto most banks primarily concentrated on the major commercial centres of the country," Chukwumaeze stated.
Speaking after receiving the recognition, Alawuba expressed his appreciation to the leadership of the university for the honour extended to him, just as he attributed his success to God and hard work. He took time out to encourage the students to stay focused and diligent whilst congratulating other fellow awardees.
Alawuba said. "I am grateful to the management of IMSU for the honour and recognition, and I want to thank the amiable governor, the VC and other top executives of this great institution for the honour that you have shown me today. I promise that I will continue to do my best to make this school and indeed the indigenes of this great state proud. I also seize this opportunity to advise the young ones to be focused and put their best in their studies, so that one day they will also be recognised globally."
The visitor of the university and Governor of Imo State, Hope Uzodimma, said his administration would do all the needful to help the university, fulfil noble expectation of rising to the challenge of assuming greater responsibility to move the State forward.
The governor spoke in his capacity as the Visitor of Imo State University during the 8th Convocation Ceremony which held at the Convocation Ground in Owerri.
No less than 5000 graduands comprising first degrees, post graduate diplomas, higher degrees and honorary degrees from 2014- 2015 set up to 2021-2022 set which produced 30 first class graduates were convoked.
APC Conniving with Banks to Hoard New Naira Notes, Atiku Alleges
The presidential candidate of the PDP, Atiku Abubakar, has alleged that some bank executives were conniving with the ruling APC to frustrate the distribution of the new naira notes in a bid to frustrate the policy.
Special Assistant on Public Communication to Atiku Abubakar, Mr. Phrank Shaibu, made the allegation in a statement yesterday, while reacting to a statement by the Speaker of the House of Representatives, Femi Gbajabiamila.
Shaibu said the viral videos showing government agencies busting banks hoarding the new naira notes was clear evidence of sabotage.
He said, "Intelligence reaching us is that the APC is in collusion with some top bank executives to frustrate the policy of the CBN. As shown in several trending videos posted by government agencies on social media, hundreds of millions of naira are in bank vaults but the banks are deliberately refusing to distribute them.
"It is no secret that all the commercial banks are headquartered in Lagos where Bola Tinubu holds sway as godfather.
"The ultimate goal is to frustrate the policy so that the APC will be able to bring out the old notes it has stashed for the sole purpose of vote buying and distribution with bullion vans. For this reason, we commend the EFCC and the ICPC for exposing these unscrupulous bankers."
Shaibu lambasted Gbajabiamila, for using his position as the 4th most senior elected official in the country to play cheap politics.
He advised Gbajabiamila to play decent politics like the Senate President, Ahmad Lawan; and Vice-President Yemi Osinbajo.
He added, "It is the height of idiocy for the nation's number four citizen to play cheap politics with a monetary policy introduced by his own party which is in power. Gbajabiamila wishes to become the chief of staff to Tinubu in the event that Tinubu wins so his overzealousness is quite understandable.
"However, his attempt to bring Atiku into this issue shows how mischievous he is. Gbajabiamila summoned the CBN Governor, Godwin Emefiele, last week where they reached an understanding and issued a resolution which the House and the CBN agreed to.
"But because he is already seeing the imminent defeat of his master at the polls, he is now playing dirty politics.
"Nigerians must note that this is a policy being implemented by an APC government. However, the likes of Gbajabaimila are too timid to approach President Buhari to reverse this policy. His aversion for this CBN policy has nothing to do with the masses. It is about the inability of his master to deploy bullion vans on election day."
Shaibu described Gbajabiamila as a hypocrite who pretends to be on the side of the masses during crisis but is actually working for his own selfish reasons.
He recalled that during the eight-month strike embarked on by the Academic Staff Union of Universities (ASUU), Gbajabiamila pretended to be on the side of the lecturers only for him to abandon them at sea.
Shaibu said, "Gbajabiamila promised the lecturers that they would be paid their arrears. After the lecturers called off their strike, he denied making the statement in the first place. Such a liar should not be believed by the masses.
"When dirty petrol was imported last February, Gbajabiamila set up a committee to investigate it. Till date he has done nothing about it. The fuel scarcity has continued to linger for over eight months but he remains mute.
"This is the same man who scuttled the ongoing probe of the Niger Delta Development Commission (NDDC) at the House of Representatives for selfish reasons."
"However, huge volumes of the new notes must not get into the hands of unscrupulous politicians who plan on using bullion vans to distribute money on election day. The desperate APC must not be allowed to steal this election," he said.
Also, the PDP has called on the CBN to monitor distribution of new Naira notes and also provide mobile banks in rural areas. The National Publicity Secretary of the party, Debo Ologunagba in a statement issued yesterday, also decried the excruciating pain and distress being faced by Nigerians arising from their inability to access the new naira notes.
He said the pain was occasioned by the reported nefarious activities of corrupt All Progressives Congress (APC) leaders who were allegedly compromising the system to intercept and hoard the new bank notes for their selfish vote-buying plans ahead of the February 25, 2023, presidential election.
The main opposition party expressed sadness that the cash crunch had persisted due to the alleged sabotage of corrupt APC leaders, including the APC presidential candidate, Bola Ahmed Tinubu, who was alleged to have masterminded the intercepting and hoarding of the new notes for their selfish agenda.
The PDP said it was disgusted by the hypocrisy being exhibited by the APC presidential candidate, who, despite his alleged role in the cash scarcity was pointing accusing fingers at others and seeking to exploit the ugly situation to incite unsuspecting Nigerians with the view to disrupting the 2023 general elections.
Ologunagba said Tinubu and his apologists in the APC were aware that he had no chance in the election and thus are devising all manner of shenanigans to overheat the polity, derail the electoral process and force an undemocratic situation upon country.
He, however, expressed optimism that the hopelessness and anguish brought upon the nation by the APC administration would be a thing of the past when the PDP presidential candidate, Atiku Abubakar assumes office as President come May 29, 2023.
The PDP called on president Muhammadu Buhari to protect Nigerians by going after these felonious APC leaders as well as the saboteurs in the system who are reportedly working with the APC Presidential Campaign to mop up cash meant for distribution to our citizens.
MAN Decries Hiccup in Implementing Naira Redesign
However, MAN projected that the bottleneck militating against the effective implementation of the policy would cost manufacturers a 25 per cent decline in sales of manufactured products.
This view was expressed by the Director General of MAN, Mr. Segun Ajayi-Kadir, in an exclusive interview with THISDAY at the weekend, in which he warned that no effort should be, "spared to ensure that the price to be paid for this otherwise laudable policy does not outpace its gains."
Ajayi-Kadir said: "To be clear and I want to put this first, there is no doubt that the currency redesign is desirable. There are socioeconomic and political imperatives for the change. It is a critical element of the CBN 'cashless economy' policy that should have far reaching positive results for our economic.
"However, the continued scarcity of new the redesigned naira notes is quite worrisome. With our growth prospects heading further south, we can ill afford a downturn in our GDP. The negative impact it portends for local producers, the agricultural and distributive segments of our economy is huge and may worsen the bashing our economy has received from both external and internal shocks in recent times.
"I would put a rough estimate of 25 per cent drop on monthly sales of domestic goods if the situation should persist for the next three weeks.
"As the purchases from the retail end that is mostly transacted in cash dries up, you will immediately notice a sharp drop in wholesale purchases and instant buildup of unsold inventory in our industries."
He warned that the prevailing cash crunch where naira notes are not readily available to businesses, individuals and households, "is not good for anyone, including the industry, the government and the ordinary citizen. You will have a compounded crippling lack of patronage for the domestic manufacturer; the denial of government revenue that would have accrued from consumption taxes and the disruption of the daily life and need of the average Nigerian."
The Director General of MAN told THISDAY that he had expected that the CBN and the banks should be engaging at the highest level at this time.
He said: "There is need for strategic communication and joint operations to ensure widespread and sustained availability and circulation of the redesigned Naira notes. It is baffling to approach a bank only to be told that there is neither the old nor the new Naira notes!
"We hope that the resumption of payment across the counter in the banks and the intensification of the CBN special cash swap arrangement in remote areas may yield positive results."
Police Warns against Lawlessness in Kwara, Governor Calls for Calm
Kwara State Police Command at the weekend warned that any move by the hoodlums to cause lawlessness that was unleashed on some banks in the country due to scarcity of the naira would be vehemently resisted in the state.
Already, the command has directed the aggressive patrols of banks and other financial facilities across the state in order to check any breaking down of law and order.
Also, at the weekend, the state governor called for calm and patient over the scarcity of naira notes on some banks ATMs in the state.
In a statement issued in Ilorin, that was signed by the command's Public Relations Officer(PPRO), Mr. Okasanmi Ajayi, the police explained that, "Intelligence available to the command indicates that hoodlums have perfected plans to cause crisis in Kwara state over the naira notes swap that is ongoing in Nigeria at present, which the government is doing all within its power to normalise."
The statement added, "The command wishes to assure the good people of Kwara State of the command's capacity to deal ruthlessly with any lawbreaker.
"Criminals are therefore advised to shelve any such dastardly idea and consequently, the Commissioner of Police, Kwara State, CP Paul Odama has ordered aggressive patrols of banks and other financial facilities across the length and breadth of the state."
The statement however warned that, criminal elements in the state to change their minds as anyone arrested would be met with heavy consequences. A word, they say, is enough for the wise."
In a related development, the state governor has called for more supply of the new naira notes to the citizens to ease things for the masses and stabilise the currency swap policy.
Speaking during a courtesy meeting with the CBN Consumer Protection Department in Ilorin, led by Mrs. Rashidat Jumoke Monguno, the governor called for calm while all stakeholders work to ease the situation.
"It's quite proactive for you to come down to various states to see that compliance is being followed through down to the grassroots level. Our people really need this at this time," the governor said.
"We appreciate your coming and we will continue to engage the citizens, traditional institutions, students, all other segments of the society, farmers and NGOs to pass the message through for us to have calmness and make sure the process is seamless."
Naira Redesign Policy May Not Stop Vote Buying, Says Oye
The National Chairman of APGA, Chief Victor Oye has said contrary to the notion that redesigning the naira would checkmate vote buying during forthcoming elections, politicians who are used to the act may still find ways to engage it.
He said as noble as the naira redesign policy may be, it's poor timing had robbed off on the advantages and is currently causing hardship to people around the country.
Speaking to THISDAY at the weekend, Oye said there was no way desperate politicians would not find ways of circumventing the rule and still perpetrate vote buying.
He said APGA's worry was that the crisis of new naira notes and fuel shortages came in less than one month to the national election.
"For us, we believe that the timing is not the best, " he said.
Oye said the crisis of new naira note may lead to serious disruptions in social and economic activities and might ultimately have negative impact on the conduct of the forthcoming national election in the country."
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He said: " For me government, didn't have enough time to articulate the situation well. They did not carry people along and if they had carried out a referendum, they would have found out that Nigerians would have requested for a longer period for the implementation of the naira design.
"But federal government applied the surprise mechanism which has put the nation in a state of confusion as people could not have access to their money and cannot meet their basic needs.
"While the long term effect is still uncertain, it's immediate impact is that it is going to have disruptive effect on the forthcoming national elections. First people may not be able to move, travel to go and vote."
ACAMBs Assure Customers of Improved Access to Cash, Refute Allegations of Banks' Hoarding
The Association of Corporate Affairs Managers of Banks (ACAMB) yesterday said banks are currently working with the CBN to ensure that customers have access to cash through ATMs and other payment channels as well as Over-the-Counter (OTC) in the banking halls.
ACAMB in a statement signed by its President, Rasheed Bolarinwa, also refuted allegations that the financial institutions were hoarding or holding back naira notes thereby subjecting Nigerians to harrowing experiences over the past few days.
ACAMB however, empathised with the Nigerian public on the unintended hardships being faced in the ongoing rollout of the redesigned naira notes and enhanced cashless policy.
The banks' media managers acknowledged that the unintended constraints in the withdrawal of old naira notes and circulation of new naira notes, alongside the national policy to enhance cashless transactions, have had unintended effects on the generality of Nigerians.
They assured that the entire banking sector was working with the central bank and other stakeholders to urgently address constraints in the implementation of the cashless policy and ensure that Nigerians suffer no untoward pains in the transition process.
According to the association, "We are confident that these measures, in addition to efforts by the regulatory CBN, will result in greater ease of access and cash liquidity. The federal government and the CBN have reiterated similar readiness to address any constraint in the cyclical flow, including making adjustments, where necessary.
"ACAMB urges Nigerian banking public to exercise patience and not to resort to any untoward behaviour against Bank staff or banking facilities."
The association also argued that banks and customers are inseparable stakeholders who exist for one another, adding that it would be detrimental to the interest of the general banking public to disrupt banking operations by untoward actions against bank staff or vandalisation of banking facilities.
The statement said, "ACAMB affirms without any equivocation that banks are not in any way hoarding or holding back naira notes or engaging in any act inimical to our avowed commitment to exciting customer experience.
"ATMs are being loaded every day and cash is being paid as provided by the CBN, as regularly being checked by CBN inspectors and other regulators including anti-graft agencies."
The group banks have taken additional measures said in the past few hours to quicken the flow of naira notes as well as deployment of extra technical supports for online payments, additional security at ATMs to ensure all-clock usage, technological back-up to reduce online downtime to the barest minimum, additional staff deployment to counters to attend to cash transactions and timely interbank and inter-branch networking to bridge any gap.
Among other things, the ACAMB stated that the Nigerian banking industry owes its global success as a leader in digital banking to its enthusiastic customers and remains committed to doing everything possible to ensure customers continue to have a delightful experience in the banking halls and across electronic and other alternate channels.
It said, "Nigerian Banks have invested an estimated total sum in excess of N100 billion in setting up and maintaining cutting-edge electronic channels over the past few years as part of an ongoing commitment to seamless customer experience and real-time digital financial transactions.
"From internet banking to mobile apps, Automated Teller Machines (ATMs), Point of Sales (PoS) merchants, mobile wallets, Unstructured Supplementary Service Data (USSD) codes, agents and digital franchises among others; not less than 80 per cent of Nigerians now enjoy one form of digital or cashless transaction or another, powered by investments by Nigerian banks."
