ECONOMIC MATRIX OF REDESIGN OF NAIRA NOTES :
Good evening great friends and Partners. We bring you update reflections on the recent announcement of the Governor of Central Bank Nigeria Mr. Godwin Emefiele on Wednesday in Abuja. First it’s agreeable that international standard or Global best practice is for central bank to redesign, produce and circulate new local legal tender between five to eight years.
Second it’s true that Central bank is the key administrator of currency management as enshrined in Section 2b of the Central bank of Nigeria Act 2007. Third it’s a fact that most percentage of currency in circulation are outside the vaults Commercial banks which affects financial stability and short supply of calculated currency. Few things that requires clarification and that will help you plan ahead.
First December is too sudden to return all the cash in circulation if 80% of the cash in circulation is not in vaults of any commercial bank except there is underground plan to print more currency than required to cushion the effect of shortage.
Second, the exercise coming up at the heels of general election is something of worry for curious minded person.
Third, redesigning of the currency is not a major challenge to the state of the economy of Nigeria
Fourth, what is the plan to make sure that this over 80% of cash in circulation but not found in any vaults of any commercial bank is returned.
Fifth this exercise will cost or increase our indebtedness and doesn’t add value to the living conditions of Nigerians
Sixth, agreed that the exercise may force Politicians who have hoard the cash to release it for avoidance of lost in value but will that increase purchasing power of Nigerians in any way.
Seventh, how much of our cash are in circulation and that is the only way to know how much to print.
Eight, we hope the redesigning exercise will not tamper with the existing images on the notes.
Ninth, Nigerians should be shown samples of these intended newly designed notes. In fact this is global practice that citizens have the privilege to criticize their notes before it’s finally printed.
Tenth, Nigerians hope that the obtained approval should include Nigerians knowing their fate if they are short paid for the amount they brought to bank.
Eleventh, Nigerians should expect shortfall of the returned cash.
Twelfth, we want to counsel that January may not be possible as when the existing currencies shall seize to be legal tender. No rightful thinking person who has this Nation in mind will want to support that January 31st as the last day when the elections are starting in February 2023. Honestly that is a clear path of cash anarchy and election rigging. For now we will like drop the pen and promise to keep updating you on the implications of new redesign of NAIRA notes. It is not something you should keep quiet or else what happened years ago will repeat itself. Don’t keep quiet and nobody should intimidate you.
His BONDSERVANT Chidi COLLINS OPARAOJIAKU