Suspense as Council of State advises co-existence of old, new notes

• Backs new cash policy • Tasks CBN on aggressive circulation of new currency
• Traders reject old notes in Benue, Lagos • Kano joins suit against FG at Supreme Court 

The National Council of State, yesterday advised the Federal Government to make new naira notes available or re-circulate the old notes to ease the sufferings of Nigerians nationwide as a result of scarcity of cash. 

The Council, presided over by President Muhammadu Buhari, during its first hybrid meeting this year, however, expressed its support for the government’s new monetary policy, but tasked the Central Bank of Nigeria (CBN) to take urgent steps to arrest the scarcity of cash plaguing the country.

The outcomes of the meeting was disclosed to newsmen by the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, who was accompanied by the governors of Lagos and Taraba states, Babajide Sanwo-Olu and Darius Ishaku, respectively, and Presidential Spokesman, Femi Adesina.

Disclosing the final resolutions of the meeting, Malami said the two major issues deliberated by members were the level of preparedness for the upcoming general election, which he said both the Chairman of the Independent National Electoral Commission (INEC), Prof. Mahmood Yakubu, and the Inspector-General of Police (IGP), Alkali Baba, had assured of adequate readiness.

He said the briefing on the new monetary policy, including the re-designing of some categories of the naira, elicited reactions and opinions, adding that the conclusion was that the CBN should do more to ensure there is circulation of adequate cash in the system to alleviate the harsh realities trailing the policy. 
“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,” he said. 

Providing details of the proceedings of the meeting, Governor Ishaku disclosed that the most contentious issue was the cash scarcity, which had led to protests in some parts of the country, as a result of the hardship that had attended the cash swap policy of the CBN.

Ishaku said the Council advised the CBN Governor, Godwin Emefiele, to make the newly re-designed naira available by printing more or if printing would be difficult, the apex bank should re-circulate the old notes.

The governor said: “The INEC Chairman briefed the Council of State on their preparedness for the election on the 25th of this month and that of the 11th of next month that they are fully prepared. Also, Inspector-General of Police briefed Council that they are equally prepared for the election and both of them gave us the details of their preparedness.
“Lastly was the Governor of the Central Bank, who briefed us on the monetary change and the monetary issues that have arisen across the whole states in the federation and to give us the merits of that policy that was implemented.
“Basically, what took more time was that of the monetary issue, because of the hardship 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 will just need a little sum of money to buy their food, buy their drugs, on a daily basis and they cannot even afford it. 
“So, the pains and the sentiments and the sentiments across the country are being expressed by different governors, my colleagues. And I think, collectively, all these ideas are to proffer solutions and advise 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.”

Speaking with journalists after a separate meeting with the President, Lawan said he informed Buhari that the National Assembly had resolved that there should be no cap on currency swap policies because of the way the scenario is now playing out and how it impacts the constituents who make up their constituencies.
“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 per cent of the population have no access to banks. 
“When Britain changed their currency, it took them over a year to change and the validity of the old remained 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,” Lawan said.

The Council of State advises the Federal Government on policy issues. The president, vice-president, governors, Secretary to the Government of the Federation, former presidents, former heads of state, former Chief Justices of Nigeria, President of the Senate, Speaker of the House of Representatives are members and the Attorney-General of the Federation are members.

Meanwhile, the Kano State government has joined the suit at the Supreme Court against the Federal Government regarding the deadline on naira swap policy.

The state joined Kaduna, Kogi and Zamfara state governments on the substantive suit, which would be heard by the apex court on Wednesday, February 15.

In suit number SC/CS/200/2023, filed last Thursday evening and seen by The Guardian, the Kano State Attorney General, through his Counsel, Sunusi Musa (SAN), is praying the apex court to declare that the President of Nigeria cannot unilaterally direct the CBN to recall the now N200, N500 and N500 old bank notes without recourse to the Federal Executive Council (FEC) and National Economic Council (NEC), respectively.

The applicant is also seeking for a mandatory order compelling the Federal Government to reverse the naira redesign policy for alleged failure to comply with 1999 Constitution (as amended).

It is also praying the court to issue a mandatory order seeking for a reversal of the policy for affecting the economic well being of over 20 million of Kano residents.

Findings by The Guardian yesterday showed that traders and farmers had started rejecting the old naira notes as at yesterday in Benue State, especially in the rural areas.

Farmers who brought their produce to bush markets also refused to accept the old notes for fear that it may cease to be legal tenders from today. 

The Guardian observed that in Mbaataiwa village in Gboko local council, many of the villagers who still had the old notes rushed to deposit them at the banks even as POS operators spoken to were skeptical to transact with the old notes.

In Lagos State, uncertainty also persisted around the cash swap policy among residents. The situation became worse as many banks’ Automated Teller Machines (ATMs) were shut down in many parts of the metropolis amid the silence by the CBN silence.

Some residents said they thought that the Supreme Court’s interim order, which generated heated debates among Nigerians, would ease the tension and restore normalcy.

Observations in some markets, sales and business outlets and banks in the stated showed that frustration heightened as mobile money transfers were fluctuating due to bad network.

Some banks that were overcrowded with customers in some areas few days ago became almost empty. Customers seen at some of the banks visited were not sure of the situation, as they couldn’t get officials to explain update on the situation to them.

They were seen queuing at ATM boots, not because they were sure of getting money from their banks, but they were with the hope that the machines might later be loaded with cash.

According to them, they were on the queues to see if they could get money to withdraw for their daily use, especially as the weekend approached.

Also, some business owners and traders in Ikotun Ilewe, Ejigbo and Ajao Estate markets said they were not sure whether to open their shops for business or stay at home.

This they noted was because they did not want to be caught having currencies that had ceased to be legal tenders.

Those who were courageous to open for business lamented poor sales, while some saw the CBN cashless policy as a blessing in disguise.

Mrs Philomina Borokiri, a grain seller in Ikotun Market, stated that sales had been very low, attributing it to the scarcity of naira notes.

“This CBN policy is really hitting us hard, particularly we the traders because our transactions are always in cash.

“And now that the old naira notes have expired, I have stopped collecting old notes from customers.
“A lot of sales came in today but all came with old notes, I told them I could only accept new notes.
“Since they didn’t have new notes and I have no bank account, those sales passed me by,” Borokiri said.

Another trader, Mr Ofonime Udo, spoke in the same vein.
“I am so frustrated as we speak. I have not sold anything since morning because customers came to buy with old notes.
“Government should please help us and make the new notes available for people to spend. We have goods to sell, but customers don’t have the legal tender to buy from us.
“This is so annoying. My neighbour had to trade his goods with me without using money,” he said.

However, Alhaja Rusikat Adedeji, who sells jewellery in Ilewe Market, said since the CBN pronouncement on cashless policy, she had been making much sales.
“Many people in this market have account but they are afraid of receiving fake alerts. Also poor network and how they will go and queue in banks to collect cash are another barriers.
“I prefer that my money be paid into my account so that I can use it to buy my goods. This means that I will not need to travel with cash. All I’ll do is mobile money transfer.
“So far, I have been making good sales and my customers are also happy too,” she said.

Adedeji, therefore, appealed to the apex bank to make the new notes go round, saying the sufferings on people were frustrating.