New Naira: Economists Urge CBN to Implement Court Ruling

Some economists have urged the Central Bank of Nigeria (CBN) to comply with the Supreme Court’s ruling, that allows the old Naira notes to remain as legal tender till Dec. 31.

The experts commended the apex court’s judgement on the old Naira notes.

They said the time frame given by the Supreme Court will provide an opportunity for the CBN to assess the policy.

They noted that it would also afford the bank the opportunity to improve on its implementation without causing distortions to the economy.

The Supreme Court anullified the Federal Government’s Naira redesign policy on Friday, declaring it as an affront to the 1999 Constitution.

Akpan Ekpo, Professor of Economics and Public policy at the University of Uyo, Akwa Ibom, described the judgment as “a correct one’’.

“It is a correct judgment. No country introduces or redesigns a new currency in three months; it is usually for a period of at least 18 months.

“We had argued earlier, even before the Supreme Court judgement, that both currencies should circulate side by side till the old notes are no longer available.

Also, Prof. Hassan Oaikhenan of the Department of Economics, University of Benin, said that the judgment which was expected, would bring the much needed succour to the citizenry.

“The judgement, in my view, was expected, given the outcome of the Presidential election held last week. The lawyers are, however, the best to dissect the judgment.

“By this judgement, the affected currencies, expectedly, will continue to be legal tenders and will thus be used for economic transactions.

 

Achievements

Meanwhile, Uchenna Uwaleke, a Professor of Finance and Capital market at the Nasarawa State University, Keffi, also urged the CBN to obey the ruling.

“Doing so will help revive economic activities and reduce the current difficulties being experienced by Nigerians on account of the policy,’’ he said.

Nevertheless, he said that the CBN has recorded some achievements in terms of the objectives it set out to achieve.

“The reduction in huge cash circulating outside the commercial banks, the surge in electronic transactions, and increase in financial Inclusion are part of the achievements recorded thus far.”

However, Prof. Ndubisi Nwokoma, Director, Centre for Economic Policy Analysis and Research, University of Lagos, in his view, said there should be a clear demarcation of powers for the operation of the apex bank.

“My take is that this issue, which is largely economic, has been muddled up with lots of politics and legality.

“The conduct of monetary policy is entirely within the purview of the central bank.

“So, does it mean that, going forward, the Supreme Court has to approve every monetary policy decision taken by the Central Bank?

“There’s need for a clear demarcation of powers for the operation of the apex bank,’’ Nwokoma said.

 

 

 

 

NAN/Hauwa Abu