Lagos, Nigeria - The recent spike in the number of failed transactions across Nigeria, due to the increased reliance on e-banking and the shortage of cash has sparked a renewed discussion on the CBN's Naira redesign policy.
During a meeting with the Council of State, attendees called for more aggressive action from the government in distributing the new notes.
The Attorney General, Mr. Abubakar Malami, emphasized that the Naira redesign policy still stands, however, there is a need for more proactive efforts from the CBN in terms of implementation and supply. The President, Mr. Muhammadu Buhari, who attended the meeting was noncommittal and barely spoke, taking his leave early as the time for Jummat prayer approached, and Vice President Yemi Osinbajo, took over.
Osinbajo thanked the meeting attendees and reminded them that the Council of State is an advisory body, stating that the president is expected to make a decision on the matter in the coming days.
The CBN Naira redesign has been a hot topic of discussion in recent times, with calls for more efficient measures to address the shortage of cash and the increased reliance on e-banking. The incessant failed transactions have been a source of frustration for many Nigerians, and the attendees of the Council of State meeting hope that the Buhari administration will take more aggressive action in circulating the new notes.
Commercial banks across the country are shockingly insisting on the CBN's February 10 deadline to deposit old N200, N500 and N1,000 banknotes despite a temporary halt of the process by the Supreme Court.
On Tuesday, a seven-member panel led by Justice John Okoro halted the CBN’s withdrawal of the old naira denominations in a ruling in an ex-parte application brought by three northern states: Kogi, Kaduna and Zamfara.
Meanwhile, CBN Governor Godwin Emefiele reportedly admitted that supply constraint arising from the limited capacity of the Nigerian Security Printing and Minting Plc (The Mint) to print new Naira notes to meet current demand is responsible for the severe cash shortage experienced by Nigerians across the country.
According to a report by PREMIUM TIMES, a source disclosed that “The Mint has run out of papers to print N500 and 1,000 notes. They have placed orders with a German firm and De La Rue of the UK (for papers) but they have been placed on a long waiting list so their orders cannot be met now."
Without a definite pronouncement by the federal government or the CBN, Nigerians have started rejecting the old notes, despite severe shortage of new notes and skyrocketing failed transactions, leaving Nigerians confused and businesses flummoxed while an already ailing economy suffers more hit.
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