Naira Redesign: Your Process Is Inchoate, Puts Nigeria In Jeopardy, CSO Tells CBN

A Civil Society Organization, CENTRE FOR GRASSROOT DEVELOPMENT AND CRIME PREVENTION INITIATIVE has called out the Central Bank of Nigeria(CBN) over its process of demonetization after the introduction of redesigned denominations of N200, N500, and N1000, late 2022, saying that the apex bank had jumped
gun without conscious recourse to the certain provisions of its Act.

The group explained that in as much as the original notion of the CBN towards curbing corruption and act of criminality through the policy is commendable and laudable, the pattern of implementation adopted by the bank is anti-people and in conflict with extant law.

The group, in a press statement signed by its National Coordinator, Salako Oluranti and made available to newsmen in Abuja on Sunday argued that the two fundamental and integral conditions stipulated by Section 20 of the CBN Act(2007) was not put into consideration by the apex bank, to make the process seamless and less stressful for Nigerians.

It said while the section unequivocally affirms all currencies issued by the CBN as legal tender on its face value and for the payment of any amount, the withdrawal of such currencies therefore from circulation must be a function of a specific directive from the President and after reasonable notice for recall had been made.

According to the group, none of the two conditions were effectively and efficiently followed by the CBN, thereby making the whole process highly lopsided and shrouded in secrecy with attendant pandemonium and tension across the country.

The organization also asserted that the provision of the CBN ACT in section 20(3) which gives the power to CBN to withdraw bank notes that have been ceased to be legal tender as a result of demonetization clearly mandates the apex bank to allow citizens to redeem old notes in their possession upon demand, even after the
close of window for currency swap.

This provision according to the group was made purposely to guide against any form of agitation and tension the scramble by the citizen to meet deadline for currency swap might cause in the polity.

The statement read in part: ” While we recognize the need for financial inclusion and sustainable economy through the policy of demonetization as provided for by the CBN Act(2007) in its section 20 specifically. However, the modus operandi of the CBN under the
leadership of Mr Godwin Emiefele in the ongoing implementation of the policy is counterproductive as well as inimical to the survival of our economy and corporate entity.

”For instance, in line with the conditions for implementation provided by this Act, Nigerians are not aware if the policy of demonetization originally emanated from the President through a directive to the CBN, also, the emphasis on ”Reasonable Notice of Recall”, by the ACT was not put into consideration by the CBN, which resulted to palpable tension and agitation of high magnitude among Nigerians who are afraid of loosing their hard earned money.

”Also, the awareness campaign by the CBN on the scope of the policy across Nigeria is terribly poor, short and insufficient, especially among the illiterate and semi-literate population, as well as in the rural areas.

”The most pathetic aspect of the modus operandi adopted by CBN is that contrary to the provision of the CBN ACT in section 20(3), the apex bank refused to tell Nigerians that there is window of opportunity for those who failed to meet up with the deadline for currency swap set as January 31st by the CBN to do so upon demand.

”Section 20(3) of the CBN ACT(2007) stipulates that” Any note or coin with respect to which a notice has been given under this subsection, 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.

‘Obviously, if the CBN had effectively communicated the above subsection to Nigerians and made them to have the assurance of getting their old note swapped to new notes upon demand even after the deadline, nothing could have warranted the present tension across the country and the seeming threat to national security.

”On a final note, we want to explicitly state that the implementation of the policy of demonetization by the CBN is both lopsided and disservice, it regrettably violates the tenets of its Act in the area of diligent and effective communication to the people of Nigeria who have the inalienable rights to be adequately informed and enlightened.

“We, hereby, implore the CBN to quickly address all these anomalies in its policy implementation, especially the liberty provides for by the Act for Nigerians to still swap their old note with the new one upon demand with the CBN, this will go a long way to ameliorate the present tension in the polity.