CBN Deadline And New Naira Circulation Crisis -By Ibrahim Mustapha Pambegua

The governor of central Bank, Godwin Emefiele, shortly after the monetary policy committee meeting on Tuesday stated that, the 31 January deadline for the collection of old naira notes remain sacrosanct. Emefiele statement came even after the national assembly deliberated on the need for Apex bank to extend the collection of the old naira to June inview of the rush with which the policy is being implemented and how the rural and unbanked communities would suffer the consequences. It could be recalled, last year, CBN announced its decision to redesign N200, N500 and 1000 naira notes and move the country to cashless economy.

Though, the policy has continued to generate mixed reactions from Nigerians,it has the blessing of Mr president. There is no gainsaying the facts, the policy is a big blow to money launderers, kindnappers and votes buyers. However,it has come at wrong time. Majority of nigerians do have banks accounts and 80% of transactions in the country are cash backed. Besides, lack of good network coupled with erratic power supply have made electronic banking more difficult and unreliable to nigerians.

The CBN January deadline is like putting a cart before the horse. While the grace period granted to nigerians to deposit their old money was 90 days, there was inadequate enlightment and sensitization campaign not only by the CBN but also other government agencies. The blame games between the CBN and money deposit Banks (MDBs) has compounded or worsening the scarcity of the new notes. CBN insisted that it has released adequate new printed mint to banks to upload in their respective automobile Teller machine (ATM), while banks continued to disperse old naira notes to the surprise of desperated nigerians. Nigerians have been eager to obtain the new . Yes, the CBN’s swap policy in which mobile money agents are allowed to swap new money to the tune of 10,000 directly to the rural nigerians is good and may hasten quick circulation of new notes,the few days remaining are not enough to penetrate remote communities and other riverine areas.

The decisions by the merchants or marketers to stop collecting old notes before the deadline amidst scarcity of the new ones will fuel naira circulation crises. The POS operators who are supposed to ease transactions difficulties have been making brisk businesses. They have increased charges ranging from 500 to 1000 per ten thousands deposit. With the deadline fast approaching and many nigerians yet to deposit or access new redesigned naira, CBN should as a matter of urgency extend the period as being demanded by Nigerians.

Ibrahim Mustapha Pambegua, Kaduna state 08169056963.