The Nigerian Governors Forum (NGF) has accused the Central Bank of Nigeria of engaging in a ‘currency confiscation’ program that has caused suffering to Nigerians.
The governor also called “to stop the CBN’s plan to end the use of old currency notes.”
The governors, on party lines, stated this in a communique at the end of their meeting held on Saturday in Abuja.
“Our view is that what the CBN is currently doing is a currency seizure program, not a currency exchange policy as envisioned under S20 (3) of the CBN Act, 2007. Currency seizure in the sense of liquidity provided to the public. The public is not enough because of the limitations that applies to the amount that can be withdrawn regardless of the amount deposited,” the governors said in a communique signed by the chairman of the NGF, Governor Aminu Tambuwal of Sokoto.
The governor’s stance comes amid suffering by Nigerians who find it difficult to access cash for their day-to-day transactions.
The currency scarcity is a product of the central bank’s decision to redesign the notes of the three largest naira denominations: N200, N500 and N1,000.
However, since the announcement of the new notes last October, they have become scarce even though the central bank announced a deadline of February 10 for the old notes.
Details later….
Read the full NGF statement below.
ADOPTED at the end of the 3rd Meeting of the Governors of NIGERIA’
FORUM (NGF) HELD ON SATURDAY, FEBRUARY 11, 2023
We, members of the Nigerian Governors Forum (NGF), in our meeting today discussed critically
issues of national interest and resolved as follows:
1. First of all, we express our sympathy and support to Nigerians who are going through great difficulties these days. CBN Naira redesign and cash withdrawal limit policy.
We feel the pain and we decided to use all legal channels to ease the situation.
2. It has become necessary to distinguish between the Central Bank of Nigeria (CBN) Naira redesign policy supported by Section 20 (3) of the CBN Act, 2007 and the aspirational policy of going cashless, both are mutually exclusive at this time.
3. It is our view that what the CBN is currently doing is a currency confiscation program, not a currency exchange policy as envisioned under S20(3) of the CBN Act, 2007. Currency confiscation in the sense of liquidity provided to the general public is grossly inappropriate because Limits are placed on the amount that can be withdrawn regardless of the amount deposited.
4. The current approach of the CBN raises concerns about respect for civil liberties and the rights of Nigerians as it relates to the freedom to legitimately use income as desired.
5. The Forum believes that to implement a cashless policy and expand digital transactions, the best practice worldwide is to create incentives to attract customers; rather than the draconian approach we have seen over the past three months.
6. The argument by the CBN about what it described as an astronomical increase in currency in circulation as the basis for this policy is not supported by the data itself. According to the CBN, the currency in circulation increased from N1.4 trillion in 2015 to N3.23 trillion in October 2022. The bank does not seem to take into consideration the increase in the size of the country’s nominal GDP which over this period, in the doubling of consumer prices, increases population, and the influence of the great way & the way forward to the federal
government by the Central Bank of Nigeria at this time.
7. In the situation, it is safe to draw one of two conclusions – CBN data may be incomplete or in fact, Nigerians have also done very well in the transition to a cashless economy.
8. In addition, considering the sizeable informal sector in the nation, the amount of paper money
made in the exchange so far by the CBN means that it is vastly underestimated the real cash needs of the economy. Not being able to use the new notes has a lot of economic effects, leading to the emergence of the Naira black market, severe food inflation, variable commodity prices based on the exchange method, and long queues around Automated Teller Machines (ATMs) and banking halls. throughout the country with
individuals hope to get a fraction of the money in new notes to meet their daily livelihood. The country is at risk of recession caused by the CBN.
9. While we acknowledge the submission of the Attorney General of the Federation that the Federal Government will comply with the judgment of the Supreme Court calling to stop the CBN plan to stop using the old currency notes, we have not observed. changes in the financial system.
10. Consequently, we call on the Federal Government and the CBN to respect the Rule of Law and listen to the voice of reason written by Nigerians and some other stakeholders including the State Council, before the damage to our economy becomes too great to repair. by the next administration.
ALSO READ: Nigerian stocks stop rising as trading volume falls
11. Members rose from the meeting agreed to direct the Attorney General to review the lawsuit in the Supreme Court with a view to consolidating the legal relief pursued by the State.
Rt. horns Aminu Waziri Tambuwal Chairman, Nigeria Governors’ Forum
February 11, 2023
Support the integrity and credibility of PREMIUM TIMES journalism
Good journalism costs a lot of money. But only good journalism can guarantee the possibility of a good society, responsible democracy, and transparent government.
For continued free access to the best investigative journalism in the country, we ask that you consider making a modest contribution to this noble effort.
By contributing to PREMIUM TIMES, you help keep journalism relevant and ensure it remains free and available to all.
contribute
AD TEXT: Call Willie – +2348098788999
