BREAKING: Nigerian Governors Take Stand Against CBN's Naira Redesign Policy, Warn of Consequences

BREAKING: Nigerian Governors Take Stand Against CBN's Naira Redesign Policy, Warn of Consequences

  • Nigerian governors have criticised the Central Bank of Nigeria (CBN)'s controversial naira redesign policy
  • In a communiqué, the state political leaders under the aegis of the Nigeria Governors’ Forum (NGF) said the policy may lead the country to another recession
  • The governors cried out that the scarcity of naira notes is making lives harder for the Nigerian masses

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FCT, Abuja - The Nigeria Governors’ Forum (NGF) has stood against the naira exchange policy of the Central Bank of Nigeria (CBN), saying the country is at risk of recession due to the controversial programme.

A report by TheCable indicates that the governors made their position known in a communiqué issued at the end of a meeting of the NGF on Saturday, February 11.

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Nigerian Governors Forum/CBN Naira Redesign Policy/New Notes/Recession
Nigerian governors warned that the CBN's naira redesign policy may lead the country to recession. Photos: Olukayode Jaiyeola/NurPhoto, KC Nwakalor/Bloomberg, PIUS UTOMI EKPEI/AFP, Benson Ibeabuchi
Source: Getty Images gathers that the communiqué was signed by Aminu Tambuwal, chairperson of the NGF and governor of Sokoto state.

CBN's naira redesign policy causing hardship for Nigerians - NGF

The governors further criticised the CBN over the handling of the naira redesign policy, adding that the resulting naira note scarcity is causing hardship for Nigerians.

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“The argument by the CBN for what it describes as the astronomical increase in the currency in circulation as the basis for this policy is not supported by its own data,” the communiqué reads.
“According to the CBN, the currency in circulation increased from N1.4 trillion in 2015 to N3.23 trillion in October 2022. The Bank appears not to have taken into consideration the increase in the size of the country’s nominal GDP over this period, the doubling of consumer prices, rising population, and the impact of the humongous Ways & Means advances to the federal government by the Central Bank of Nigeria over this period.

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“In the circumstances, it is safe to draw either of two conclusions – the CBN data may be incomplete or in fact, Nigerians may have done exceptionally well in the transition to a cashless economy.
“In addition, considering the sizeable informal sector in the nation, the amount of banknotes created in exchange so far by the CBN implies it vastly underestimated the economy’s actual cash needs.
“The inability to use the new notes has had far-reaching economic effects, leading to the emergence of the Naira black market, severe food inflation, variable commodities prices based on the method of exchange, and long queues as well as crowds around Automated Teller Machines (ATMs) and banking halls across the country with individuals hoping to get a fraction of their money in new notes to meet their daily livelihood.
“The country runs the risk of a CBN-induced recession.”

Old Naira notes deadline: 36 state governors in Nigeria reveal position, send letter to Buhari

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Old Naira Notes Deadline: All 36 State Governors in Nigeria Reveal Position, Send Letter to Buhari

Earlier, reported that the governors of the 36 states in Nigeria implored President Muhammadu Buhari to postpone the deadline for the old Naira notes to stop being legal tender.

Under the aegis NGF, the governors made the plea in a letter to the president dated Monday, February 6, 2023

The letter was signed by Governor Tambuwal of Sokoto state, the NGF chairman.


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