Politicians, Governors Mopping Up New Notes for Election, Allege CBN Governor, CSOs
NEW NAIRA NOTES
*As FG awaits Supreme Court ruling on new currency
* Some governors vowed to make Nigeria ungovernonable if policy is not reversed – CSOs
By Our Reporter
The Central Bank Governor, Mr. Godwin Emefiele and a coalition of 472 civil society organisations (CSOs) on Tuesday accused politicians and some state governors of mopping up the new Naira notes apparently for the purpose of buying election votes.
This was as the Presidency disclosed that the federal government and the Central Bank were yet to take decision on the legality of the old Naira notes.
Emefiele while addressing the diplomatic community in Abuja said it has been noticed that some politicians were buying the new N200, N500 and N1, 000 for political reasons.
Emefiele however called on the foreign missions and Nigerians for their support on the implementation of the new policy.
He said that what the politicians were doing was simply to discredit the new cashless policy.
He said that the politicians were storing the new notes for the election.
The CBN governor explained that the policy was to make monetary policy decisions more effective, stating that so far inflation has been going down with exchange rate also recording some stability.
He also said that the policy was to ensure increase in financial inclusion in Nigeria by reducing the number of Nigerians who are not using banking services.
He said, “We have started to see inflation trending downwards following general price stability in almost all genre of market, including for goods and financial products.
“Data from our market sources indicate that the prices of grains and key staples, around Suleja and Lambata markets, for instance, have generally been on the downward trend since the beginning of the policy.
“The price for soya beans has dropped from N30,000 to N22,000. Maize from N18,000 to N16,000. The price of a bull fell from N400,000 to N330,000 and ram from N75,000 to N50,000.
“While the policy was initially estimated to lead to more speculations due to panic moves, as most people try to understand the policy action, it is expected to reduce speculation in the medium- to long-run.
“Today, the limited circulation of the new naira notes has forced the hands of speculators and we are beginning to witness some stability. The initial pressure is projected to further moderate as the implementation of the policy takes-off and a wider understanding pervades the system.”
On Tuesday, a coalition of 472 civil society organisations (CSOs) alleged that 10 governors have been mopping up the new naira notes.
The National Convener of the CSOs Obed Okwukwe, made the allegation during a world press conference.
Although he did give names, he said the governors were out to ensure that the monetary policy did not work.
He also said that the governors have vowed to make Nigeria ungovernonable if the policy is not reversed.
Okwukwe said “These governors are mopping up the money and stopping it from circulation. The CBN had announced that it deployed N300 billion in cash as the first tranche of cash it disbursed.
“We all can agree that the money was hijacked and did not trickle down to the people and the people who took hold of it from the commercial banks have not brought it out to circulate.
“They are withholding the money using various means, including deploying agents, who use multiple ATM cards to withdraw the money, colluding with their banker agents to continue to trap the moneys in the banks and buying off cash from business places that ordinarily make huge cash transactions, like petrol stations, supermarkets and departmental stores.
Meanwhile, the spokesman to the President, Mallam Garba Shehu said on Tuesday that the federal government will make its position on the currency swap after the determination of the case before the Supreme Court.
He said, “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 position of the government and the CBN will be made known upon the determination of the suit coming up Wednesday.”
It would be recalled that the Supreme Court had suspended the CBN February 10 deadline on the use of the old notes.
* Some governors vowed to make Nigeria ungovernonable if policy is not reversed – CSOs
By Our Reporter
The Central Bank Governor, Mr. Godwin Emefiele and a coalition of 472 civil society organisations (CSOs) on Tuesday accused politicians and some state governors of mopping up the new Naira notes apparently for the purpose of buying election votes.
This was as the Presidency disclosed that the federal government and the Central Bank were yet to take decision on the legality of the old Naira notes.
Emefiele while addressing the diplomatic community in Abuja said it has been noticed that some politicians were buying the new N200, N500 and N1, 000 for political reasons.
Emefiele however called on the foreign missions and Nigerians for their support on the implementation of the new policy.
He said that what the politicians were doing was simply to discredit the new cashless policy.
He said that the politicians were storing the new notes for the election.
The CBN governor explained that the policy was to make monetary policy decisions more effective, stating that so far inflation has been going down with exchange rate also recording some stability.
He also said that the policy was to ensure increase in financial inclusion in Nigeria by reducing the number of Nigerians who are not using banking services.
He said, “We have started to see inflation trending downwards following general price stability in almost all genre of market, including for goods and financial products.
“Data from our market sources indicate that the prices of grains and key staples, around Suleja and Lambata markets, for instance, have generally been on the downward trend since the beginning of the policy.
“The price for soya beans has dropped from N30,000 to N22,000. Maize from N18,000 to N16,000. The price of a bull fell from N400,000 to N330,000 and ram from N75,000 to N50,000.
“While the policy was initially estimated to lead to more speculations due to panic moves, as most people try to understand the policy action, it is expected to reduce speculation in the medium- to long-run.
“Today, the limited circulation of the new naira notes has forced the hands of speculators and we are beginning to witness some stability. The initial pressure is projected to further moderate as the implementation of the policy takes-off and a wider understanding pervades the system.”
On Tuesday, a coalition of 472 civil society organisations (CSOs) alleged that 10 governors have been mopping up the new naira notes.
The National Convener of the CSOs Obed Okwukwe, made the allegation during a world press conference.
Although he did give names, he said the governors were out to ensure that the monetary policy did not work.
He also said that the governors have vowed to make Nigeria ungovernonable if the policy is not reversed.
Okwukwe said “These governors are mopping up the money and stopping it from circulation. The CBN had announced that it deployed N300 billion in cash as the first tranche of cash it disbursed.
“We all can agree that the money was hijacked and did not trickle down to the people and the people who took hold of it from the commercial banks have not brought it out to circulate.
“They are withholding the money using various means, including deploying agents, who use multiple ATM cards to withdraw the money, colluding with their banker agents to continue to trap the moneys in the banks and buying off cash from business places that ordinarily make huge cash transactions, like petrol stations, supermarkets and departmental stores.
Meanwhile, the spokesman to the President, Mallam Garba Shehu said on Tuesday that the federal government will make its position on the currency swap after the determination of the case before the Supreme Court.
He said, “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 position of the government and the CBN will be made known upon the determination of the suit coming up Wednesday.”
It would be recalled that the Supreme Court had suspended the CBN February 10 deadline on the use of the old notes.
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