Naira Crunch:  Is This The Voice Of Emefiele Or The Hands Of Buhari? -By Isaac Asabor

If there is any classical quote that is at the moment finding expression in Nigeria’s monetary system today, it is unarguably that of Robert Frost that says, “Two roads diverged in a wood, and I took the one less traveled by, and that has made all the difference”. The reason for embellishing this view with the foregoing quote in this context cannot be farfetched as it is apt in explaining the excruciating pains Nigerians are presently passing through as a result of the cash crunch thrust upon them by ill-implemented fiscal policy by both President Muhammadu Buhari and the governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele. Without resorting to denigration, they have unarguably led Nigerians to the point that would make an “ordinary man” scream, “Help me, help me, e dey carry me dey go where I nor know”.

Yes, since the past few weeks, Nigerians are literarily been walking through a monetary avenue that can best be likened to the biblical situation where evil terrorists slaughtered and butchered innocent Jews as they stood in prayer talking to their Creator. The contrast between the perpetrators and victims has never been more poignant.

Without any scintilla of hyperbole, the fiscal situation in which virtually all Nigerians have found themselves as a result of the ongoing demonetization exercise that is been implemented by the leadership of the CBN has kept tongues wagging as to who is in charge at the apex bank. The question that sounds like “Is this the voice of Emefiele or the hands of Buhari” is been asked in a hush-hush tone. There is no denying the fact that the preceding days have seen not a few Nigerians conjecturing to rightly identify who, among the leaders, is afflicting Nigerians with the agonizing pains they have been passing through, particularly since the last few days.

For the benefit of those that are in doubt about who ought to be in charge of demonetizing Nigeria’s economy, it is expedient to avail them of an extract of the CBN’s mandate thus: “The mandate of the Central Bank of Nigeria (CBN) is derived from the 1958 Act of Parliament, as amended in 1991, 1993,1997,1998,1999 and 2007.

“The CBN Act of 2007 of the Federal Republic of Nigeria charges the Bank with the overall control and administration of the monetary and financial sector policies of the Federal Government.

“The objects of the CBN are as follows: ensure monetary and price stability; issue legal tender currency in Nigeria; maintain external reserves to safeguard the international value of the legal tender currency; promote a sound financial system in Nigeria; and act as Banker and provide economic and financial advice to the Federal Government.

“Consequently, the Bank is charged with the responsibility of administering the Banks and Other Financial Institutions Act (BOFIA), 2020, with the sole aim of ensuring high standards of banking practice and financial stability through its surveillance activities, as well as the promotion of an efficient payment system.

“In addition to its core functions, CBN has over the years performed some major developmental functions, focused on all the key sectors of the Nigerian economy (financial, agricultural, and industrial sectors). Overall, these mandates are carried out by the Bank through its various departments.”

Against the foregoing backdrop, it is crystal clear and explanatory that Emefiele ought to be in charge of carrying out CBN’s constitutional mandate, and duty bound to remain independent from the federal government’s interference.  Aptly put, it is high time he depoliticizes CBN by pulling himself off from the apron strings of the presidency.  Unfortunately, the story is different from what Nigerians are witnessing today.

At this juncture, it is expedient to recall that since Nigerians began to pass through the hardships brought on them by the Naira crunch palaver that they have for the umpteenth time been subjected to conflicting orders emanating from both the officials of the apex bank and the presidency as they usually gather from the media.

For instance, not a few bank customers were enmeshed in the quagmire of the Naira crunch on Friday, February 17, 2023, when they heard from both the mainstream and online media platforms that Deposit Money Banks (DMBs) had been directed by the apex bank to receive the old N500 and N1, 000 notes from depositors.  The information which later was found to be fake resulted in confusion that lasted till Friday evening.

According to the online edition of the Punch newspaper of February 18, 2023, the conflicting orders emanated from media reports based on anonymous briefings by senior officials of the apex bank, through a memo that the bank reportedly gave to commercial banks, and an official statement issued by the bank, all within six hours.

Being one of the news platforms that reported the story that eventually turned out to be fake against the backdrop of CBN’s rebuttal later in the day, the newspaper insisted that it reported the rebutted against the backdrop of an exclusive inquiry which its Correspondents obtained from the apex bank. Thus, continued in its report, “Sources within the financial industry and the government told our correspondents that the CBN gave its initial order for customers to proceed to commercial banks after its offices were besieged by Nigerians who wanted to deposit the old N1, 000 and N500 notes. The bank had not envisaged that the crowd would be overwhelming.”

“The management later rescinded its initial order after it was accused by senior government officials of contradicting the President, Major-Gen. Muhammad Buhari (retd.).The officials told the bank’s senior management that its order contradicted the one given by the President during his address on Saturday when he reiterated that all existing notes could only be exchanged at the “CBN and designated points.” However, the ‘designated points’ were not defined by the President.

“Buhari had said, “In line with Section 20(3) of the CBN Act, 2007, all existing old N1, 000 and N500 notes remain redeemable at the CBN and designated points.”

“Findings, however, showed that the CBN did not attempt to countermand the President. The bank’s management had read ‘designated points’ to be commercial banks, hence the directive. Section 20 (3) of the CBN Act referred to by the President states, “Notwithstanding sub-sections (1) and (2) of this section, the Bank shall have power, if directed to do so by the President and after giving reasonable notice in that behalf, to call in any of its notes or coins on payment of the face value thereof and any note or coin with respect to which a notice has been given under this sub-section, shall, on the expiration of the notice, cease to be legal tender, but, subject to Section 22 of this Act, shall be redeemed by the Bank upon demand.”

Against the foregoing backdrop, it is germane to say that since Nigerians began to groan under the excruciating weight of the Naira crunch that the media landscape has literarily been embellished with headlines in the following similitude:  “Naira crunch: Should Nigerians blame Emefiele or Buhari?”, “Naira crunch: Should Nigerians blame Emefiele and Buhari?”, “Naira crisis: Emefiele not to blame”, “Northern Elders blame Buhari for crisis trailing naira redesign” “Naira crisis worsens, Emefiele justifies redesign”,  and “CBN Should Apologise To Nigerians For Naira Scarcity” among a litany of other blame-apportioning headlines that have been putting Nigerians into confusion as to rightly identifying whom, among the two leaders, that is making Nigerians pass through these excruciating pains since the past few weeks.

Given the unpalatable situation that has presently spread across the nation, not a few Nigerians have continued to ask whether it is the voice of Emefiele they are hearing or the hands of Buhari they are feeling.

Be that as it may, the consolation remains that as Nigerians collectively keep their fingers crossed, things will continue to unfold, particularly as both the general and presidential elections are fast approaching. Time will tell.