Group Backs CBN Over Naira Redesign, Says Move Will Curb Security, Other Challenges

• Rights group. The Civil Society Groups for Good Governance has said that the recent naira redesign is a good one
• The group’s president Ogakwu Dominic Ogakwu said the move will strengthen the economy
• He said that excess cash in circulation portends danger for the economy as unscrupulous people took advantage of the situation

The Civil Society Groups for Good Governance says the recent move by the Central Bank of Nigeria to redesign banknotes is the best move necessary to curb Nigeria’s challenges.

The group stated that Nigeria’s economic challenges are a tripod of heavy dependence on imports as against production, a corruption-riddled economy and crude oil theft.

Excess cash in circulation, bad for the economy

According to the group, the move will also thaw inflation as excess cash in circulation is a major contributory factor to inflation in any economy.

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It highlighted a statement by the CBN Governor, Godwin Emefiele that 85 per cent of the money in circulation is outside the banking system.

Per the statement by the group, most of the cash making the rounds have been stashed at home in septic tanks, and underground warehouses by unscrupulous Nigerians.

The President of the group, Ogakwu Dominic Ogakwu told Legit.ng that the move is the country’s effort to control inflation and money supply in the system and enhance economic growth.

Ogakwu said:

"Looking at the inflation induced by the excess cash in circulation, plus the attendant insecurity and unemployment, is Nigeria ripe for a contractionary monetary policy at a time like this? Your guess is as good as mine."

Ogakwu said the recent moves by some groups and lawyer, Femi Falana to take the CBN to court over the cash withdrawal limit mean well for the country.

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He said:

“So, rather than crucifying Emefiele for this laudable initiative, let all well-meaning Nigerians close ranks and rally around the policy, urging the government to implement it in a seamless manner devoid of illegalities and any other shortcomings”

PoS operators, Falana to go to court Over CBN's withdrawal limit

Legit.ng reported that Point of Sale terminal operators otherwise known as PoS operators has begun moves to sue the Central Bank of Nigeria if it does not stop the withdrawal policy it recently imposed on Nigerians.

The policy limits over-the-counter withdrawals by individuals and corporate bodies to N100,000 and N500,000 respectively weekly.

In a memo, the apex bank introduced the policy stating that third-party cheques above N50,000 would not be eligible for over-the-counter payment while existent limits of N10 million on clearing cheques still remain.

Source: Legit.ng