*The Nigeria Governors鈥� Forum assures the citizenry it is ‘determined to employ all legitimate channels to ease the situation’, urging the Federal Government and Central Bank of Nigeria ‘to respect the Rule of Law and listen to the voice of reason expressed by Nigerians and several other stakeholders’

Isola Moses | 绿帽献妻

The 36 State Governors under the aegis of the Nigeria Governors鈥� Forum (NGF) has told citizens that it feels their pains and is 鈥渄etermined to employ all legitimate channels to ease the situation.鈥�

Governor Aminu Tambuwal of Sokoto State and Chairman of NGF, in a communiqu茅 issued after the governors’ meeting at the weekend, however, cautioned that Nigeria yet runs at the risk of a recession in regard to the fallout of the Naira redesign policy of the Central Bank of Nigeria (CBN).

President Muhammadu Buhari (r) and Mr. Godwin Emefiele Governor of CBN at the launch of redesigned Naira notes November 2022, in the State House, Abuja聽 聽聽

绿帽献妻 reports NGF stated the continuous scarcity of new N200, N500 and N1,000 notes might lead to economic recession as well as severe food inflation in the West African country.

Earlier, the NGF had written to President Muhammadu Buhari to seek an extension of the deadline for activation of the Naira policy that has caused socio-economic dislocations and growing hardship among Nigerian consumers.

Sequel to the governors’ meeting at the weekend, the leaders lampooned the聽 CBN over the execution of the Naira redesign policy.

According to them, the resulting Naira note scarcity is fast causing hardship in the country.

The NGF the Federal Government and the CBN 鈥渢o respect the Rule of Law and listen to the voice of reason expressed by Nigerians and several other stakeholders, including the Council of State, before the damage to our economy becomes too great to fix by the next administration.鈥�

The communiqu茅 also noted: 鈥淔irst, we express our sympathies and support with Nigerians, who are experiencing great difficulties under the current CBN Naira re-design and cash withdrawal restrictions policy.”

Distinction between CBN’s聽 Naira redesign policy, cashless economy, by NGF

The governors also stated in their communiqu茅 that “it has become necessary to make a distinction between the Central Bank of Nigeria (CBN) Naira redesign policy backed by Section 20 (3) of the CBN Act, 2007 and the aspirational policy of going cashless, both of which are mutually exclusive at this time.

鈥淚t is our considered view that what the CBN is at present pursuing is a currency confiscation programme, not the currency exchange policy envisaged under S20(3) of the CBN Act, 2007. Currency confiscation in the sense that the liquidity provided to the general public is grossly insufficient due to the restrictions placed on the amount that can be withdrawn regardless of the amount deposited.”

It further said: 鈥淭he current approach of the CBN raises concerns about the respect for the civil liberties and rights of Nigerians as it relates to their freedom to use legitimately earned income as they so wish. “The Forum believes that to deploy a cashless policy and deepen digital transactions, the best practice around the world is to create a suite of incentives to attract customers; rather than a draconian approach as we have witnessed in the last three months.

鈥淭he argument by the CBN for what it describes as the astronomical increase in the currency in circulation as the basis for this policy is not supported by its own data.”

The NGF noted according to the CBN, the currency in circulation increased from N1.4 trillion in 2015 to N3.23 trillion in October 2022.

“The Bank appears not to have taken into consideration the increase in the size of the country鈥檚 nominal GDP over this period, the doubling of consumer prices, rising

population, and the impact of the humongous Ways & Means advances to the federal government by the Central Bank of Nigeria over this period.

鈥淚n the circumstances, it is safe to draw either of two conclusions 鈥� the CBN data may be incomplete or in fact, Nigerians may have done exceptionally well in the transition to a cashless economy.”

It said: “In addition, considering the sizeable informal sector in the nation, the amount of banknotes created in exchange so far by the CBN implies it vastly underestimated the economy鈥檚 actual cash needs.

“The inability to use the new notes has had far-reaching economic effects, leading to the emergence of the Naira black market, severe food inflation, variable commodities prices based on the method of exchange, and long queues as well as crowds around Automated Teller Machines (ATMs) and banking halls across the country with individuals hoping to get a fraction of their money in new notes to meet their daily livelihood.

“The country runs the risk of a CBN-induced recession.

鈥淲hile we acknowledge the submission of the Attorney General of the Federation that the Federal Government will comply with the ruling of the Supreme Court which calls for the halting of CBN鈥檚 plan to end the use of the old currency notes, we are yet to observe changes in the financial system.

“Consequently, we call on the Federal Government and the CBN to respect the Rule of Law and listen to the voice of reason expressed by Nigerians and several other stakeholders including the Council of State, before the damage to our economy becomes too great to fix by the next administration.

鈥淢embers rose from the meeting agreeing to direct their Attorneys General to review the suit at the Supreme Court with a view to consolidating the legal reliefs pursued by States.鈥�

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