The Nigerian Bar Association (NBA) has asserted that the law permits Nigerians to redeem their old naira notes at the Central Bank of Nigeria (CBN) even after the January 31 deadline established by the bank for this process. The Federal Government introduced redesigned N200, N500, and N1000 notes on November 23, 2022, and subsequently, the CBN set a deadline for exchanging the old notes for the new ones. As this deadline approaches, many Nigerians have expressed their frustrations regarding the difficulties they face in obtaining the new notes, both when attempting to swap old notes at banks and when using Automated Teller Machines (ATMs) to withdraw cash.
In a letter addressed to CBN Governor Godwin Emefiele and signed by NBA President Yakubu Maikyau, the association called for an urgent review of the policy. This information was shared in a statement by NBA National Publicity Secretary Akorede Lawal on Saturday. While the NBA praised the CBN’s demonetization policy for its potential to combat corruption and vote-buying, Maikyau highlighted the lack of necessary logistical, infrastructural, and manpower support, which is essential for the successful implementation of the policy. He emphasized that improvements in these areas are crucial to minimize economic hardship during the transition.
Maikyau raised concerns about the absence of public information regarding the fate of old currency held by Nigerians after January 31, despite the law providing clarity on this matter. He referenced Section 20 (3) of the CBN Act, which states that the bank has the authority to call in its notes or coins if directed by the President, following reasonable notice. He pointed out that any individual possessing old notes that cease to be legal tender by January 31 is entitled to approach the CBN for redemption, and the bank is legally obligated to fulfill these requests.
Given the lack of information, the NBA President recommended launching a public campaign to educate Nigerians about the demonetization process and clarify what will happen to old banknotes after the deadline. This initiative aims to alleviate the rising panic and agitation stemming from concerns about the inability to exchange old notes for new ones. On Friday, Maikyau visited the Minister of Finance, Budget and National Planning, Dr. Zainab Ahmed, in Abuja, where he conveyed the public’s concerns regarding the CBN’s demonetization policy, particularly the scarcity of new notes and the challenges faced by citizens in exchanging old notes.
The NBA spokesperson stated that Maikyau had instructed the chairpersons of the 128 NBA branches to assess the policy’s impact on Nigerians in their areas. The reports indicated that banking facilities are overwhelmed, and citizens are uncertain about the policy’s implications. Maikyau noted that the most affected individuals are underprivileged citizens, whose life savings may not exceed N10,000, leaving them without access to the new notes and potentially denying them their hard-earned money in old naira notes. He recalled the harsh experiences of Nigerians during a similar demonetization policy in 1984, which reportedly led to a tragic incident where a trader committed suicide due to being stranded with old notes.
Maikyau expressed concern that President Muhammadu Buhari may have been misadvised regarding the policy, as the CBN’s authority to demonetize currency requires a directive from the President and reasonable notice. He questioned whether such a directive was issued and whether the notice provided was reasonable under the current circumstances. He argued that the process leading to the policy warrants scrutiny and justifies the need for an extension of the implementation timeline. He lamented that Nigerians were given only 45 days to exchange their old notes for new ones, contrasting this with the 18-month notice period provided in advanced economies like the United Kingdom when similar policies were enacted.
In response, the Minister of Finance acknowledged the concerns surrounding the policy and indicated that the ministry would engage with the CBN to consider revisiting the January 31 deadline for the demonetization policy.
Comments are closed for this story.