The President, Major General Muhammadu Buhari (retd.), addressed the nation on Thursday morning in a televised broadcast, focusing on the naira crisis that has been plaguing the country. He apologized for the difficulties citizens have faced in accessing the scarce new naira notes and outlined ten major takeaways from his speech.
Buhari defended the Central Bank of Nigeria’s naira redesign policy, explaining that it became necessary because the proportion of currency outside banks rose from 78 % in 2015 to 85 % in 2022. As of October 2022, the total currency in circulation had reached N3.23 trillion, of which only N500 billion was within the banking system while N2.7 trillion remained permanently outside it, distorting financial policy and hindering effective inflation management.
To cushion the impact of the new naira policy, the President approved the continued use of the old N200 note as legal tender for the next 60 days, meaning Nigerians can trade with it until April 10. After that date, the old N200 will cease to be legal tender. In contrast, the old N500 and N1000 notes are no longer legal tender; however, they remain redeemable at the CBN and designated points in line with Section 20(3) of the CBN Act 2007. The old N200 will circulate alongside the new N200, N500, and N1000 notes.
Buhari expressed deep regret for the hardships caused by the naira redesign, stating, “I am deeply pained and sincerely sympathise with you all over these unintended outcomes.” He directed the CBN to deploy all legitimate resources and legal means to ensure citizens are adequately educated about the policy, have easy access to cash withdrawals, and can make deposits.
Explaining the reasons for the redesign, Buhari highlighted several critical points: restoring the CBN’s statutory ability to control money in circulation; addressing the growing proportion of currency outside banks, which distorts financial policy and inflation management; correcting the large volume of banknotes unavailable for economic activities; expanding financial inclusion by reducing the unbanked population; and supporting security agencies in combating banditry and ransom‑taking as the security situation improves.
The President outlined the expected short‑, medium‑, and long‑term goals of the new policy: strengthening macroeconomic parameters; reducing the broad money supply and slowing the velocity of money, thereby easing pressure on domestic prices; lowering inflation; curbing illegal economic activities and corruption; stabilising the exchange rate; facilitating easier loans and lower interest rates; and enhancing visibility and transparency of financial actions to enforce anti‑money‑laundering legislation more efficiently.
Buhari warned that anyone who sabotages the naira policy will face the full weight of the law. He has instructed the CBN to intensify collaboration with anti‑corruption agencies to ensure that any institution or individual impeding implementation is held accountable.
Emphasising that the redesign serves the nation’s economic best interests, the President pleaded for public understanding and patience during this transitional phase. He reiterated his appeal for cooperation until the difficulties are resolved as quickly as possible.
Looking ahead to the upcoming general elections on 25 February 2023, Buhari noted that the new monetary policy helps minimise the influence of money in politics, marking a positive departure from the past and establishing a strong foundation for free and fair elections. He urged citizens to vote without fear, assured them that security would be provided, and called for an end to electoral violence, wishing everyone a successful election.
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