The President, Muhammadu Buhari, on Thursday morning
addressed the nation in a televised broadcast where he addressed the naira
crisis plaguing the country.
In his address, the president apologised for the
difficulties experienced across the nation in accessing the scarce new naira
notes.
Here are 10 major takeaways from the president’s address
New naira has come to stay
The president has defended the naira redesign policy of the
Central Bank of Nigeria. In his address, he said the policy became necessary
noting that the proportion of currency outside banks grew from 78% in 2015 to
85% in 2022. He said as of October 2022, the currency in circulation had risen
to N3.23 trillion; out of which only N500 billion was within the Banking System
while N2.7 trillion remained permanently outside the system; thereby distorting
the financial policy and efficient management of inflation.
Old N200 note will remain legal tender till April 10
The president, in an effort to cushion the effect of the new
naira policy on the citizenry, approved the continued use of the old N200 as
legal tender for the next 60 days. This means that till April 10, Nigerians
will be able to trade with the old N200 banknote. However, it will also cease
to be legal tender after its 60 days of grace elapses.
Old N500, N1000 notes no longer legal tender
On the contrary, the president had nothing much to say about
the old N500 and N1000 bank notes, which indicates that they are no longer
legal tender in the country, as he said the old N200 will circulate alongside
the new N200, N500 and N1,000 notes.
He however added, “In line with Section 20(3) of the CBN Act
2007, all existing old N1000 and N500 notes remain redeemable at the CBN and
designated points.”
Buhari apologises for difficulties
Speaking on the difficulties Nigerians have experienced
since the naira redesign, the president said he was deeply sorry for the
hardship caused.
In his words, “I am deeply pained and sincerely sympathise
with you all over these unintended outcomes. To stem this tide, I have directed
the CBN to deploy all legitimate resources and legal needs to ensure that our
citizens are adequately educated on the policy , enjoy easy access to cash
withdrawal through availability of appropriate amounts of currency and
availability of currency.”
Why naira was redesigned
In a bid to enlighten Nigerians on why the naira was
redesigned, Buhari said, “I feel obliged to avail you a few critical points
underpinning the policy decision. These include:
a. The need to restore the statutory ability of the CBN to
keep firm control over the money in circulation.
b. The proportion of currency outside banks grew from 78%in
2015 to 85% in 2022, thereby distorting the financial policy and efficient
management of inflation;
c. The huge volume of banknotes outside the banking system
has proven to be practically unavailable for economic activities and by
implication, retard the attainment of potential economic growth;
d. Economic growth projections make it imperative for
government to aim at expanding financial inclusion in the country by reducing
the number of the unbanked population; and
e. Given the prevailing security situation across the
country, which keeps improving, it also becomes compelling for government to
deepen its continuing support for security agencies to successfully combat
banditry and ransom-taking in Nigeria
What new naira policy will achieve
The president highlighted the expected short, medium and
long terms goals the policy is supposed to achieve as; a strengthening of our
macroeconomic parameters; reduction of broad money supply leading to a
deceleration of the velocity of money in the economy which should result in
less pressures on domestic prices; lowering of Inflation as a result of the
accompanying decline in money supply that will slow the pace of inflation;
Collapse of illegal economic activities which would help to stem corruption and
acquisition of money through illegal ways; Exchange Rate stability;
availability of Easy Loans and lowering of interest rates; and greater
visibility and transparency of our financial actions translating to efficient
enforcement of our anti-money laundering legislations.
Saboteurs of naira policy will face the law
Buhari said he has directed the CBN to intensify
collaboration with anti-corruption agencies, “so as to ensure that any
institution or person(s) found to have impeded or sabotaged the implementation
should be made to bear the full weight of the law.”
He added, “I have directed the CBN to deploy all legitimate
resources and legal means to ensure that our citizens are adequately educated
on the policy; enjoy easy access to cash withdrawal through availability of
appropriate amounts of currency; and ability to make deposits.”
Buhari appeals for understanding
Insisting that the naira redesign policy is for the economic
best of the nation, the president pleaded with Nigerians for understanding. he
said, “I seek your understanding and patience during this transient phase of
implementation,” adding that “I wish to once more appeal for your understanding
till we overcome this difficult transient phase within the shortest possible
time.
Next administration will benefit from naira redesign
On the fast-approaching general elections, the president
said, “On the 25th of February, 2023 the nation would be electing a new
president and National Assembly members. I am aware that this new monetary
policy has also contributed immensely to the minimization of the influence of
money in politics. This is a positive departure from the past and represents a
bold legacy step by this administration, towards laying a strong foundation for
free and fair elections.
Shun electoral violence
Buhari further urged every citizen to “go out to vote for
their candidates of choice without fear, because security shall be provided and
your vote shall count. I however admonish you to eschew violence and avoid
actions capable of of disrupting the electoral processes. I wish us all a
successful general election.”
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