By Rotimi Fasan

WHEN the Central Bank of  Nigeria, CBN, took the decision to redesign the naira, it had a few objectives to achieve. Even if many Nigerians now believe what the CBN has done is merely change the colours of the notes that are now thought to be qualitatively inferior to the old notes, the CBN aimed to strengthen its cashless policy drive by drastically reducing the quantity of the naira in circulation while pushing down inflation. In all, the old notes were meant to go out of circulation by the end of January 2023, nearly four weeks short of the presidential election slated for the last week of February.

The strict timeline for the issuance of the new notes and the withdrawal of the old ones was also to reduce the ability of politicians to influence the outcome of the 2023 elections through money already kept for that purpose. Doubtful Nigerians were persuaded to see the good side of the “redesigning” of the naira despite the very obvious inconveniences that this would bring to their lives.

There has been mounting pressure on the CBN to extend the deadline for the withdrawal of the old notes given the limited time allowed for it and the inadequacy of available bank facilities to allow Nigerians to exchange the old notes for the new ones. While most banks have extended their daily and weekly operations into weekends in order to cater to the needs of Nigerians with regard to the naira exchange, not many banks have the required number of outlets to do this.

In the midst of all of this, the CBN issued regulations limiting the number of daily and weekly withdrawals Nigerians could make while outrightly prohibiting any over-the-counter withdrawal of the new notes. In other words, the new naira notes could only be obtained at automated teller payment points. But more than a month after the new notes went into circulation, most Nigerians are yet to see them, not to mention hold them in their hands. I’m now realising that my experience in this regard is not unique.

There is indeed no way things could be different if the same CBN that set what many Nigerians now consider to be not only a rigid but also an unrealistic timeline for the withdrawal of the old notes continues with the issuance of the old notes that cash deposit banks thereafter dispense to their customers.

The mistake the CBN made is the wrongheaded approach to the circulation of the new notes, which only a minority of Nigerians have ever seen. There have been reports of people rejecting the new notes in some parts of the country, citing both their alleged inferior appearance, which leads many to believe it was counterfeited in comparison to the old notes, and the fact that many simply haven’t seen them and thus can’t identify the new notes.

Added to this is the fact that since not many Nigerians know what the new notes look like, they choose to play it safe by rejecting them in favour of the old notes. In these very lean times, it’s better to err on the side of discretion. Initially, when some Nigerians started clamouring that the deadline for the withdrawal of the old notes should be extended, that is, after first resisting the whole idea behind the redesigning of the naira, one initially thought it was blackmail the CBN should not succumb to. It all appeared to be an attempt by those already accused of stashing trillions of naira notes from the banking system to second-guess the CBN.

But what proves the CBN’s lack of preparedness for the task it has assigned itself more than its failure to ensure the availability of the new notes several weeks after they were rolled out alongside plans to simultaneously mop up the old notes? How can the same government banker who has ordered deposit banks to open their doors for extended operations to receive the old notes and at the same time continue with the issuance of the old notes?

Less than two weeks until the end of January, when the old notes are meant to go out of circulation and customers are being encouraged to transfer all their old notes to the banks, the same banks continue to dispense freshly minted old notes from their cash points. What madness is this? What’s the point of the whole exercise if this is the eventual outcome? How can the CBN sabotage itself in this haphazard implementation of its own policy?

His attempt at contesting the presidential election due in just a few weeks’ time, taking off his gloves and jumping into the political fray full throttle, while still in office as the governor of the CBN, is the measure of how low Mr. Emefiele has set the bar for himself. For about two weeks earlier Mr. Emefiele had gone silent on Nigerians even as rumours of his impending arrest by the Department of State Security on charges of sponsoring terrorism spread. Nigerians were not so much worried about his absence as about the possible adverse impact of the inconclusive policies the CBN had rolled out in the event of his exile. 

Emefiele may have resumed work at the CBN, and the DSS may have denied reports that he was ever on their list of wanted Nigerians, but his disappearance has left Nigerians with more questions than his return can adequately answer. His plate is still as full, if not more so, than it was before he went out of circulation. He must convince Nigerians that keeping to his January 31 deadline regarding the old and new notes is without cost to them.