CBN, this is not commonsensical

For the past few days, many Nigerians have been passing through hell just to get the new naira notes. Recall that the Central Bank of Nigeria had extended the deadline for the use of the naira notes till February 17.

Recall that the CBN also said the new naira will control inflation, make policies more effective, ensure financial inclusion and fight corruption.

One thing I have noticed is that government officials enjoy inflicting pain on ordinary Nigerians anytime they want to introduce a new policy. And this is not an exception.

However, reports have emerged of individuals and banks hoarding these new notes, thereby limiting their circulation and causing an artificial scarcity in the market. This is not only unethical but also constitutes a criminal act.

The hoarding of the new banknotes is a clear indication of greed and disregard for the well-being of the nation. It shows a lack of patriotism and a selfish motivation to profit at the expense of others.

The hoarders are essentially taking advantage of the scarcity they have created to demand higher prices for goods and services, thereby driving up inflation and exacerbating the economic challenges faced by the country.

Moreover, hoarding disrupts the smooth functioning of the economy and undermines the efforts of the CBN to promote financial stability. By limiting the circulation of the new banknotes, hoarders are hindering the ability of businesses to operate efficiently and forcing the general public to resort to alternative means of exchange, such as digital transactions or older banknotes. This creates confusion and increases the cost of transactions, leading to a slowdown in economic activity.

Pictures emerged of many people in long queues at ATMs just to get the new naira note. I have also seen videos of people fighting inside the banking hall.

Point of sale operators (POS) have also increased the charges of transactions for the new naira note. To withdraw N5000, the charge has jumped from N100 to N500 for the new naira notes.

In rural areas, the situation is worse. There are no banks in most of the rural areas and most of them are farmers and business people and are unbanked.

To make matters worse, transfers through bank apps take forever and some don’t even go at all. I think the banks are complicit in this madness. We are not fully ready for digital banking and a cashless policy. That is a simple truth.

For most Nigerians, the last few days is Armageddon and they are just waiting for the trumpet to sound.

Why must Nigerians pass through hell anytime a new policy is introduced? The same thing happened with the NIN linkage to phone numbers.

The new joke in town now is, the naira is more valuable than the dollar. Naira is now trading against the naira.

The CBN governor, Godwin Emefiele, has said the move is not political. In the words of James Hadley Chase “Tell that To The Birds”. Even a toddler knows the new naira notes and the withdrawal policy are targeted at politicians. If it was not targeted at politicians, why the haste to stop it before the elections? Why put Nigerians through so much pain just to settle personal scores? This is not common sense.

All of a sudden, Emefiele has become the darling of some supporters of some political parties and candidates. Unless you don’t know how things work in Nigeria, most of these politicians will still find a way of getting the new naira. They will still find a way of buying votes during the elections. Make no mistake about it. The politicians and big men will not suffer because of the new naira, it’s the ordinary Nigerians that will suffer and are still suffering because of this ill-advised move.

No doubt, the new naira and withdrawal limit is a good policy but the problem is the implementation and timing. You don’t create new problems trying to solve an existing problem.

There should be no deadline for spending the old naira and the new naira notes. When people deposit old notes in the bank, they will gradually go out of circulation with time. No need for deadlines, no need to suffer and put Nigerians through all this pain just to score cheap political points. This is not common sense.