By Praise Benjamin
October 2022 saw an outpour of appreciation to the CBN from many Nigerians for the Naira Redesign initiative, with the governing body confidently assuring the nation that the change would bring positive results, especially as regards the 2023 general elections.
The Coalition of United Political Parties (CUPP) gave Emefiele his flower for this action in November, stating that it would bring a stop to the insidious practice of vote buying. It had come to light that some politicians had hoarded large amounts of old notes in order to sway the vote of the Nigerian people.
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At first glance, the plan seemed like a shining gem, but its architects failed to take into account its consequences for the unsuspecting public. The sudden shortage of new naira notes has caused widespread chaos in a matter of months, like a tempest that left destruction in its wake.
Nobody expected the situation to be this chaotic when the Central Bank of Nigeria (CBN) revealed its proposal to redesign the N200, N500, and N1000 banknotes on October 26, 2022. Following that, President Muhammadu Buhari announced the notes on November 23, 2022, with the top bank setting a January 31 deadline for the validity of old notes.
As the deadline drew near, Nigeria was plagued with a shortage of crisp, new banknotes despite assurances from the Central Bank governor that there would be ample “resources” to keep up with demand. With businesses grinding to a halt as alternative payment methods were overwhelmed, it was disheartening to see that even those who were initially targeted by the policy – the terrorists – now have stockpiles of the rare naira notes.
The CBN buckled under the weight of public pressure and pushed back the deadline, but it was merely a drop in the bucket in addressing the crisis. The situation had spiraled out of control, painting a bleak picture with reports of mothers in labor breathing their last due to their loved ones’ inability to pay the required cash at hospitals. The once peaceful streets now echo with the sound of public outrage and unrest, with protests breaking out like wildfire across the nation, all fueled by the naira note debacle.
Residents of border communities in Sokoto, Zamfara, Katsina, Adamawa, and Kwara states have taken refuge in the CFA franc, a currency that is accepted as legal tender in eight West African nations: Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. This shift is happening in Nigeria despite the fact that Section 2 of the CBN Act declares the Naira as the official medium of exchange for domestic goods and services within the country.
Residents in these border areas turned to CFA francs in response to the rising rejection of old Naira notes and their difficulty in getting fresh ones.
Is it fair to cast blame upon the people for seeking refuge from the trending monetary turmoil? As the general election approaches with less than a three-week window, the Nigerian government finds itself backed into a corner with limited options. The Independent National Electoral Commission has steadfastly maintained that the 2023 election will proceed as scheduled, but as time marches on, the possibility of postponement looms larger and larger.
FURTHER READING
The Naira redesign may be beneficial in the long term, but the Nigerian people need immediate relief from this hardship.
Praise Benjamin writes for Eko Hot Blog. This media platform reserves all rights to this article.
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