The Governor of the Central Bank of Nigeria, (CBN) Mr. Godwin Emefiele has assured Nigerians that the value of old naira notes of 200, 500 and 1000 will still be redeemed even after they have ceased to be legal tender by February 10 deadline.
The governor gave the assurance when he appeared before the House of Representatives adhoc committee on the cashless policy of the apex bank.
He said the redemption was in tandem with the law, precisely section 20 (3) of CBN act.
He also noted that the essence of the currency swap was to mop up the old notes in circulation.
He said the CBN stood side by side with the House on the position of the law.
” Let me say that you are all aware that currency management is a key function the CBN has enshrined in section 2(B) of the CBN act 2007. And indeed, the integrity of a local legal tender, the efficiency of its supply as well as the efficacy in the conduct of monetary policy are some of the hallmark of a great central bank. And we have done our best and with your support and your cooperation to make sure that we do our work”. The governor said
He said that money in circulation in Nigeria doubled in seven years which made the CBN mandate of monetary policy not to be effective
The governor noted that the CBN has received the cooperation of Nigerians and that Nigerians were responding positively.
“We held several meetings with deposit money banks and provided them with guardians notes and processes they must adopt in the collection of old notes and the distribution of new notes. These included specific directives to the banks to load the new notes into the Automated Teller Machines Nation wide to ensure and equitable and transparent mechanism for the distribution of the new notes to all Nigerians”. He said.
He also noted that the ATMs was supposed to be a leveller but he was disappointed at the banks the way the swap went.
Emefiele lamented that rather than loading the ATMs with the new notes, banks were issuing the new notes to be used at parties and other ceremonies.
He appealed to Nigerians to show understanding that the policy was for the good of Nigeria.
“Its a pain that I want to appeal to all of us to show understanding because the overriding benefit to Nigeria and Nigerians is what we are interested in, which is about making our economy stronger and combating the high incidence of insecurity in our land”. Emefiele said.
The chairman of the committee, Hon. Ado Doguwa, said the assurance would go a long way in calming the nerves of Nigerians.
He said that by the CBN act, the governor has the power to redesign the Naira and recall old notes and the National Assembly will help the CBN to protect the power in the interest of the Nigerian people.
He noted that the House welcomes the submissions of the CBN governor.
The chairman pointed out that the legislature as an arm of the government, supports the CBN to uphold the law.
Adding that lawmakers would go round their constituencies to educate them that the law remains sacrosanct.
Olusola Akintonde
