Naira scarcity: Print more new notes or re-circulate old ones, Council of State tells FG
The Council of State yesterday asked the Central Bank of Nigeria (CBN) to either push more of the redesigned naira notes into circulation or allow the old notes continue to co-circulate as a means of easing the current hardship of Nigerians.
Although the council, which comprises the President, Vice President, all living former presidents/heads of state, former Chief Justices, Senate President, House of Representatives Speaker, State Governors and Attorney-General of the Federation, expressed support for government’s new monetary policy, it noted the suffering many Nigerians are going through on account of the scarcity of naira.
Its position came as the Kano and Ondo State governments filed separate suits at the Supreme Court against the Federal Government on the naira redesign.
The Kano State Government is praying the apex court to declare that the President cannot unilaterally direct the CBN to recall the now-old N200, N500 and N1,000 banknotes without recourse to the Federal Executive Council and National Economic Council, while the Ondo State Government is seeking to be joined as co-applicants in the suit filed earlier in the week by the Zamfara, Kaduna and Kogi state governments on the matter.
Yesterday’s meeting of the Council of State was chaired by President Muhammadu Buhari.
Briefing State House Correspondents on the outcome of the meeting, Attorney General of the Federation and Justice Minister Abubakar Malami acknowledged the reactions trailing the re-designing of the N200, N500 and N1000, saying that the conclusion was that the CBN should do more to ensure adequate circulation in the system with a view to alleviating the harsh realities of the moment.
Also discussed at the meeting was the coming elections, Malami said.
With him at the briefing were Governors Babajide Sanwo-Olu of Lagos State and Darius Ishaku of Taraba State, as well as Media and Publicity Special Adviser to the President Femi Adesina.
He said: “So by way of conclusion, the two major resolutions that were driven, arriving from the deliberations of the Council, are: one that we are on course as far as election is concerned and we are happy with the level of preparation by INEC and the institutions.
“Two, relating to the naira re-designed policy, the policy stands, but then the Council agreed that there is need for aggressive action on the part of the Central Bank, as it relates to the implementation of the policy by way of ensuring adequate provision being made with regard to the supply of the naira in the system.”
Malami said the Chairman of the Independent National Electoral Commission (INEC), Professor Mahmood Yakubu, and the Inspector-General of Police (IGP), Alkali Baba, assured the council of the readiness of their organisations for the polls.
Ishaku said the cash scarcity was the most contentious issue at the meeting.
Accordingly, he said the council advised CBN Governor Godwin Emefiele to make the new naira notes available by printing more, and if printing would be difficult, the apex bank should re-circulate the old notes.
He said: “Basically, what took more time was that of the monetary issue because of the hardship of money in circulation across the whole states. Generally, the view across the board is that principally the policy is accepted.
“Just like any new policy or any new change, at the beginning people resist it, even though it’s good. But generally it’s accepted.
“But the major issue across board, from all the states and most of the speakers is that of implementation. So many views were proffered, particularly that the CBN governor should look into making sure that the new money is available in quantum.
“There were suggestions too that if the new money is not in circulation or printing them could be difficult, the old money that hasn’t been changed could be re-circulated and pumped into circulation to ease the tension, particularly for the poor people in our society who’ll just need a little sum of money to buy their food, buy their drugs for daily basis and they cannot even afford it.
“So the pains and the sentiments across the country are being expressed by different governors, my colleagues and I think, collectively, all these ideas, Mr. President was present, to proffer solutions and advice to Mr. President and he was there physically, he was present. So, I’m sure that after this meeting, a lot of things will be done, particularly in easing the monetary tension in the society.”
The council is a creation of the Constitution and its functions include advising the executive on policy making.
National Assembly: There should be no cap on naira swap
Senate President Ahmad Lawan, who had a separate meeting with Buhari after the Council of State interaction, told reporters that he passed on to the President the position of the National Assembly that there should be no cap on the currency swap in view of the way the scenario was playing out and its impact on the generality of Nigerians.
His words: “For us in the Senate, initially we felt that this policy, in the first place, is not a bad one. But we also feel there is no need for time limit. Allow the old and the new to co-exist until the old is phased out. So, what is wrong in that?
“This is not going to be the first country to deploy it that way. Other countries have been doing the same thing, and to say that in three months it will be okay, it is not okay. Especially in a country like ours, where maybe 80, 85, 90 percent of the population have no access to banks.
“When Britain changed their currency, it took them over year to change and the validity of the old remains and remains a legal tender, so why ours? We are not cashless yet and that society is cashless already and they needed even more time.
“So, we should have an open-ended time. But what will make it quick is for us to have more and more of the new currencies and then they co-exist with the old ones until the old dies a natural death.”
Only last week, All Progressives Congress (APC) governors appealed to Buhari to allow both the old and new naira notes co-circulate until the end of the year.
The President, during his meeting with the APC governors, asked Nigerians to give him one week to address the problems caused by the naira shortage.
However, the Supreme Court on Wednesday granted an interim injunction sought by the Kaduna, Kogi and Zamfara state governments restraining the CBN from ending the February 10 time frame within which the old N200, N500, and N1000 notes would cease to be legal tender.
Kano govt sues FG over naira redesign policy
A similar suit was filed at the Supreme Court late Thursday by the Kano State Government.
In suit number: SC/CS/200/2023, the plaintiff wants the apex court to declare that President Muhammadu Buhari cannot unilaterally direct the CBN to recall the now-old N200, N500 and N1,000 banknotes without recourse to the Federal Executive Council and National Economic Council, respectively.
It claims the planned phasing out of the old notes is affecting the economic well-being of over 20 million Kano citizens.
The applicant is also seeking for mandatory order compelling the Federal Government to reverse the naira redesign policy for alleged failure to comply with 1999 Constitution (as amended).
Citing Section 148(2) of 1999 constitution and Part 1, and Paragraph 19 of the Third Schedule thereof, the plaintiffs says “the President cannot unilaterally without recourse to the Federal Executive Council and National Economic Council respectively give approval to the Central Bank of Nigeria for the implementation of cash withdrawal limit pursuant to the demonetization economic policy of the Federal Government of Nigeria.”
It therefore prays the court to declare the action of the Federal Government unconstitutional, illegal null and void.
Ondo govt joins suit against FG, CBN
The Ondo State Government has also approached the Supreme Court with a suit of its own to be joined as co-applicants in the case filed by the Kaduna, Kogi and Zamfara state governments.
It wants the apex court to stop the implementation of the policy as the implementation of the directive issued by the Federal Government through the CBN on limitation of daily cash withdrawals from banks has totally paralysed the activities of Ondo State and has adversely affected economic and commercial activities in the state.
Kola Adeniyi, an aide of the Attorney-General of the state, Mr. Charles Titiloye, said: “The Ondo State Government contended that the guideline on daily maximum cash withdrawal made by Federal Government is an infraction on the legal rights of Ondo State.
