Naira redesign: Some soldiers can’t access digital payment services, says NSA

Babagana Monguno, national security adviser (NSA), says soldiers serving without access to digital payment services may be negatively affected by the naira redesign policy.

Babagana spoke on Thursday when he appeared before the house of representatives ad hoc committee on the currency redesign and naira swap policy.

Babagana, who was represented by Abubakar Mustapha, director in the office of the NSA in charge of defence affairs, said there is a need to review the policy which has resulted in the scarcity of the naira notes.

BACKGROUND

In December 2022, the CBN directed commercial banks and other financial institutions to ensure that over-the-counter cash withdrawals by individuals and corporate entities per week do not exceed N100,000 and N500,000, respectively.

However, following protests, the apex bank increased the maximum weekly limit for cash withdrawals across all channels by individuals and corporate organisations to N500,000 and N5 million respectively.

The CBN had said the aim was to boost the cashless policy and reduce the amount of cash outside the banking system.

At the time, the CBN also announced the redesign of the N200, N500 and N1,000 notes and fixed January 31 as the deadline for the old notes to serve as legal tender.

The deadline was later extended by 10 days, but many Nigerians have found it difficult to obtain the new naira notes.

‘SOME SOLDIERS CAN’T ACCESS DIGITAL PAYMENT SERVICES’

At the meeting on Thursday, Alhassan Ado-Doguwa, house majority leader and chair of the committee, asked the NSA to brief the lawmakers on how the CBN policies are affecting the “security apparatus”.

“It is the belief of this committee that the policy would have in one way or the other certain implications to the security apparatus or security architecture of the country, especially when we are facing elections,” he said.

“In this guise, we will expect you to let the committee know what you guys are into, the level of your preparedness in terms of being proactive as to how this policy could not be able to affect some of your statutory mandates.”

Responding, the NSA said the policy has affected soldiers who are deployed in areas that lack access to digital alternatives for payments.

“Globally — military operations, even in first world countries — such policies, if not properly well thought out will affect. Some of our soldiers are deployed in places where they cannot actually access digital means of paying for their daily subsistence,” he said.

“It is important that this committee sits down and articulates better ways of actually addressing these issues.”

After the NSA remarks, the committee went into a closed-door session.