Naira Crisis: Nigerian governors accuses CBN of ‘currency confiscation’

The Nigeria Governors’ Forum (NGF) has accused the Central Bank of Nigeria of causing suffering for Nigerians.

The governors in a communique signed by NGF chairman, Governor Aminu Tambuwal of Sokoto called “for the halting of CBN’s plan to end the use of the old currency notes.”

“It is our considered view that what the CBN is at present pursuing is a currency confiscation programme, not the currency exchange policy envisaged under S20(3) of the CBN Act, 2007.Information Guide Nigeria

“Currency confiscation in the sense that the liquidity provided to the general public is grossly insufficient due to the restrictions placed on the amount that can be withdrawn regardless of the amount deposited.”

As reported by PREMIUM TIMES, the currency scarcity is a product of the decision by the apex bank to redesign the notes of the three largest naira denominations: N200, N500 and N1,000.NYSC portal

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The governors emphasized on how the new CBN policy affects the civil liberties and rights of Nigerians as it relates to their freedom to use legitimately earned income as they so wish.

It said, “The Forum believes that to deploy a cashless policy and deepen digital transactions, the best practice around the world is to create a suite of incentives to attract customers; rather than a draconian approach as we have witnessed in the last three months.”JAMB Result

It further stated, “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.

 

 

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