New Notes Scarcity: We Need Your Understanding – Emefiele

New Notes Scarcity: We Need Your Understanding – Emefiele

LAGOS – The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele has called for the understanding of Nigerians as the bank looks for a solution to the scarcity of the redesigned new notes even as Nigerians continue to protest across the country.

Emefiele, who stated this at a media briefing in Lagos at the weekend, said the bank is working assiduously to address all the challenges related to the redesign of naira notes and the unavailability of cash.

He also stated that there would be no further extension of the policies just as the progressive governors are clamouring for an extension of the policy and that security agencies are alert to persecute defaulters of the policy.

He said, “Let me assure all Nigerians that the CBN, working with the Deposit Money Banks and other very important stakeholders such as the Economic and Financial Crimes Commission (EFCC) , the Independent and Corrupt Practices Commission (ICPC), and the Nigerian Financial Intelligence Unit (NFIU) are working together to ensure that the ultimate goal, which is to deliver to all Nigerians, a new currency that meets global standards is achieved. Fellow Nigerians, the Central Bank of Nigeria is aware of the difficulty being faced by Nigerians in accessing the new Currency at this initial stage of its issue and circulation but wishes to plead with all to please show some understanding as everything is being done to correct some of the observed lapses in the implementation of this ambitious program.

He further reiterated that the policy is not targeted at any politician as stated by some political bigwigs and added that added that undue charges by Mobile Money Operators (MMOs) and super agents would be stopped.

He said, “We do see that there will be some transient or temporary pains. But are appealing, we are begging, we are on our knees begging people to please show understanding they should be calm. In our meetings with the banks, we have told them to set up tents and chairs, and give people numbers, which I’m sure some people will say is old-fashioned. But at this time that we’re trying to get the currency to circulate there should be a queuing arrangement and please be patient. The assurance we give it that it would eventually go around. Eventually, the limits would be raised and the limits would be removed and people would be able to conduct their exchanges and businesses in the way it has always been in the past.”

“We are appealing, that please we understand the pain. I’ve received several calls myself from some members of my family who have complained. They will all have to just please show some understanding. It does not mean that when you queue and it didn’t get to you, you do not begin to descend to wanton destruction of bank properties.”

At this time that we’re facing this temporary and transient situation, we crave everybody’s understanding. Please be calm. We are monitoring all institutions 24/7 both cash channels and electronic channels. I’m appealing in God’s name that please let’s be calm, let’s take things easy.”

Also, the clamor by people to move the deadline by one more year is open to further extension of the deadline.

He said: “I would say no. I’m sure that people are going to say that only last week Tuesday, I said no, but I want to say unfortunately again, this time, we will not be looking at an extension of deadlines. Because we at the central bank, the deposit money banks, and other very important stakeholders, we are looking at areas where there is pressure and we are doing everything possible to address those areas of pressure.

“As the new deadlines approach, please permit me to express our sadness over the unscrupulous and unpatriotic conduct of some of our colleagues in the banking industry, whose greed and malevolence are sabotaging the CBN’s efforts. I assure you all that the enforcement agencies are on the prowl of these unpatriotic colleagues and their collaborators. A few of them involved in the sale of the new currency have been arrested by EFCC, ICPC, and indeed the DSS; and let me assure all Nigerians that these unscrupulous persons shall face the full wrath of the Law. On our part, let me assure all that the CBN possesses the capacity, manpower, equipment, and grit to produce and circulate the new notes and are doing all in our power to ease the inconvenience on all Nigerians, particularly the vulnerable Nigerians. “

Furthermore, on the findings of MMOs and surplus charges, he said: “By tomorrow, we are going to meet and if those charges are charged through the banks, we are going to have an arrangement with Telcos to see how these charges at this can be stopped. So that if we know whatever you are making that you are not making because we stopped it, we can collect it somewhere and look for a way to pay you, but we don’t want you to continue to create pain for those who want to use alternative channels when they do not have cash in their pocket. Later this night we are going to call a meeting of both the banks, mobile money agents, and Telcos that at this time, nobody should be charged. We would want this service to continue without charges.”

Also, on the chatters that the policy is solely directed at a presidential candidate, he refuted such claims and stated that the policy was in line with best practices of managing the macroeconomy.

He said, “I want to appeal and I will say that we are bankers and the issue and the point is this. I heard that the Minister of Information, Lai Mohammed has addressed the matter that nobody has been targeted and nobody is seen to be preferred. I think that you should please accept that as an explanation even from me as well.”

He further added that so far and since the commencement of this program, we have collected about N2.1 trillion; leaving us with about N900 billion.

“Generally, currency redesign policies (sometimes called demonetization policies) are designed by countries to strengthen the performance of key macroeconomic parameters and equally combat social improprieties. Chiefly, it is expected to reduce the amount of cash in the underground or illicit economy, truncate the activities of racketeers, and obliterate rent-seeking businesses in the black market. Reducing currency outside banks, will shrink money stock and accordingly lower the long-run path of inflation. The ensuing deflationary pressure could elicit interest rate cuts that will in the short- to medium-term boost economic activities, spur aggregate demand, and enhance output growth.”

“The macroeconomic impacts of currency redesign are multidimensional and could seem uncertain especially at this early stage when its inconvenience is widespread, “he stressed.