Emefiele Shows Nigerians CBN’s Indecisiveness Amidst Naira Uproar

By Min Eddie

• The CBN was set to phase out the use of the old N200, N500, and N1,000 notes from February 1, 2023.

• However, the apex bank faced various calls to extend the deadline due to the shortage of the new notes.

• The CBN has now bowed to pressure by extending the deadline.

Eko Hot Blog reports that the Central Bank of Nigeria (CBN) headed by its governor, Godwin Emefiele, has given in to the pressure to extend the deadline for the swap of old currency notes by commercial banks in the country.

EDITOR’S PICKS

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The new deadline will give a 10-day grace period for the old naira notes to be out of circulation in the country’s economic market place following complaints by Nigeria’s bigwigs in the political space.

With the new deadline being February 10th 2023 for commercial banks, and for the CBN holding out a week after to the 17th of February to receive directly old naira notes directly from Nigerians, it sets out the question of why the January 31st deadline could not be met.

Recall that the new naira notes were earmarked under the Emefiele leadership to begin circulation from the middle of December last year 2022 to the ending of January 2023 despite outcry from Nigerians.

The Central Bank up until today held on to the original deadline date of January 31st for the old notes to go out of circulation, with the CBN governor playing coy even while the commercial banks kept the old notes in circulation to Nigerians.

The sudden U-turn by the Central Bank proves the indecision that is manning its leadership or perhaps raises further questions over the success of whatever policies the new naira notes are meant to institute under Emefiele.

In reaction to the complaints by Nigerians, Emefiele on Sunday revealed in a statement of the formal actions taken by the Central Bank of Nigeria towards easing scarcity, touting President Muhammadu Buhari’s approval.

“Based on the foregoing, we have sought and obtained Mr President’s approval for the following: a 10-day extension of the deadline from January 31, 2023, to February 10, 2023; to allow for collection of more old notes legitimately held by Nigerians and achieve more success in cash swap in our rural communities after which all old notes outside the CBN loses their Legal Tender Status. Our CBN staff currently on mass mobilization and monitoring together with officials of the EFCC and ICPC will work together to achieve these objectives.

“A 7-day grace period, beginning on February 10 to February 17, 2023, in compliance with Sections 20(3) and 22 of the CBN Act, allowing Nigerians to deposit their old notes at the CBN after the February deadline when the old currency would have lost its Legal Tender status,” the CBN governor said.

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If the popular theory is to be believed, the naira redesign is targeted at stopping vote buying in the 2023 general election scheduled for February 25 and March 11, and following recent developments, that remains to be seen.

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