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FG, CBN to take position on new naira after S’Court determination today – Presidency
The presidency, on Tuesday, said neither the federal government nor the Central Bank of Nigeria (CBN) had taken a pre-emptive position on the legality of the old N200, N500 and N1,000 notes in view of the case pending before the Supreme Court, which comes up for hearing today, Wednesday.
Garba Shehu, presidential spokesman, in a statement, said the federal government’s position on the currency swap would be made public after the determination of the suit.
“Following series of enquiries, we wish to state that it is not true that the federal government or the CBN has taken a pre-emptive action on the legality of currency as a legal tender in view of the pendency of the case before the Supreme Court,” the statement said.
“The position of the government and the CBN will be made known upon the determination of the suit coming up Wednesday.”
The Supreme Court had in a ruling on February 8 suspended the CBN’s February 10 deadline to stop the use of old currency notes. The bank had ordered citizens to swap out old N1, 000, N500, and N200 banknotes for a redesigned currency by the deadline. But the apex court, ruling in an ex parte application by three states – Zamfara, Kogi and Kaduna – stopped the CBN from banning the old notes pending the hearing and determination of the case. It fixed February 15 for hearing.
Governor of CBN, Mr. Godwin Emefiele, yesterday, said the apex bank had noticed that some politicians were buying the new N200, N500 and N1, 000 for political purposes.
That was as a coalition of 472 civil society organisations (CSOs) alleged yesterday at a press conference in Abuja that 10 state governors were mopping up the new naira notes in circulation in order to discredit the policy.
Addressing the diplomatic community in Abuja, the CBN governor sought the support and understanding of the foreign missions and Nigerians, in general, towards the implementation of the cashless policy and in achieving the overall objectives of the naira redesign programme.
“The CBN has also noticed that some politicians are buying the new notes and storing them for political purposes,” he said.
Emefiele said the principal aim of the currency redesign initiative was to make monetary policy decisions more effective, adding that inflation has been trending downwards while the exchange rate has recorded some stability since the implementation of the policy.
He said the apex bank remained committed to ensuring a seamless, inclusive, and equitable implementation of the exercise for the overall benefit and growth of Nigerians, the financial system, and the economy as a whole.
He also said the programme sought to increase financial inclusion in the country by reducing the number of the unbanked population.
Emefiele noted that there had been five reversals in the bank’s attempt to go cashless and promote financial inclusion since 2014, when he was first appointed CBN governor. He explained that the reversals were born out of the need to deepen the country’s payment infrastructure, adding that the payment system in Nigeria is now among the best six in the world.
He said, “So, we believe that we have put in place enough infrastructure that would help us attain or achieve a cashless policy that will be in line with global practices.”
The CBN governor told his audience, “You are all foreign dignitaries representing your countries in Nigeria and you know and you would agree that the level at which people carry cash in Nigeria is unacceptable.
“In your countries, you do not carry cash anyhow. If you carry cash and you are seen, you are questioned and profiled continuously.”
He added, “We want to look at your country and that is why we are saying that Nigeria, being the largest economy in Africa and with the largest population in Africa, really must go cashless. And we are delighted at the CBN that with the support of President Muhammadu Buhari, we would achieve this.
“We know that at these initial stages, Nigerians will go through what we call temporary pains and we call it transient because they would come with those kinds of shocks; indeed, I must describe this shock as unprecedented.
“And that is why I would continue to appeal to everybody – Nigerians and those of you that constitute our diplomatic community – to give us all the needed support for us to achieve this objective. We want our country to look like your country and we will continue to seek your support for us to be like you.”