A former Deputy Governor of the Central Bank of Nigeria (CBN), Prof. Kingsley Moghalu says he supports the the apex bank’s proposed redesigning of the Naira.
He also said that it is troubling for 80 percent of bank notes to be outside the bank.
ASHENEWS reports that the Political Economist who threw his support behind the CBN in a statement on Saturday in Lagos, however recommended a 90-day window for implementation.
I fully support the Central Bank of Nigeria in redesigning of the Naira. If 80 per cent of bank notes in circulation are outside the banks, that is troubling.
“The CBN obviously wants to force all those notes back into the banking system. Those with the notes must surrender them to get new ones or else it becomes illegal tender after January 31 2023.
“This is also a way to withdraw currency from circulation, an unorthodox way of tightening the money supply since the country is battling high inflation.
“The flip side is that people who are holding huge amounts of cash outside the banking system for nefarious reasons will go to the parallel forex market to buy hard currency, putting further downward pressure on the value of the Naira as too much Naira will be chasing too few dollars,” the statement reads.
Moghalu also expressed doubt that the step would solve inflation, “because there also are other major reasons for inflation such as the forex crisis, which this new move can exacerbate, as well as the impact of the security crisis on food price inflation.”
According to him, the step, however, has become necessary for national security but the window for implementation is too short.
“This will put a lot of operational pressure on commercial banks and the financial system in general.
A 90-day window will have been better, but one can understand the need to avoid interfering with the elections,” he said.
The CBN on Wednesday, announced the new monetary policy to redesign N200, N500 and N1000 naira notes with effect from December 15.
The Governor of the CBN, Mr Godwin Emefiele had said that the proposed redesigning of the naira could impact positively on its value.
Emefiele had said that significant hoarding of banknotes by members of the public, worsening shortage of clean and fit banknotes and increasing cases and risk of counterfeiting informed the decision.
According to him, statistics show that more than 85 per cent of currency in circulation are outside the vaults of commercial banks.
Emefiele said the new currencies and the existing ones would remain legal tender and circulate together until January 31, 2023.
Some presidential aspirants on the platform of the Peoples Democratic Party, who lost the ticket to fly the party’s flag in the February 25, 2023, presidential poll to Atiku Abubakar, have commenced moves to end the rift between the Abubakar and the Rivers State Governor, Nyesom Wike, and his allies.
Some National Executive Committee members of the PDP have also thrown their weight behind the renewed bid by the presidential aspirants to end the ongoing dispute.
Wike, alongside his Oyo, Enugu, Benue, and Abia states counterparts, Seyi Makinde, Ifeanyi Ugwuanyi, Samuel Ortom, and Okezie Ikpeazu, respectively, has in the past two months threatened not to support the PDP ahead of the election if the National Chairman, Iyorchia Ayu, refused to quit his position for a southerner to replace him.
According to them, Ayu agreed to relinquish his position if a northerner emerged as the party’s presidential candidate.
Atiku’s emergence as the PDP standard bearer meant that both the candidate and the party chairman were from the North.
The aggrieved governors pulled out of the party’s presidential campaign council, a development that prompted the Board of Trustees to set up an ad hoc committee to broker peace between both parties. One of the recommendations of the committee was that the chairman should commit to vacate his seat after the elections. Wike and his group, however, rejected the report and insisted that Ayu must resign as the chairman before the polls.
It was gathered that before the BoT came up with the idea of setting up the committee, the presidential aspirants made an attempt to see Wike, but were not successful until the governor travelled to London in September with members of his camp.
One of the aspirants, Sam Ohuabunwa, said despite the uncompromising stand of Wike and his group, the reconciliation effort would continue as no serious PDP member “will want to give up.”
“Nobody will want to give up on reconciliation, because it is fundamental to our ability to confront the competition ahead. It is an ongoing exercise and we pray that wisdom will prevail and if wisdom prevails, the party will smile and will be able to go into the elections as a united entity,” he said.
On efforts made on the issue by the aspirants, Ohuabunwa said, “We are trying, but the truth of the matter is that all over the world, there are people who stick to certain principles and they are implacable. If you want peace, make sure there is justice.
“Wike is a dogged fighter for what he believes in. If you care to listen to him, you will find out that he is not fighting for the sake of fighting. A lot of people are speaking with him but he is saying, ‘Let justice be done.’ The question is: Is it possible to meet some of his demands to form the basis of reconciliation?
“We have done a lot, but we don’t have to put everything in the media. We are working day and night and we are also praying. A lot of subterranean undercurrents are going on and we are hopeful that this crisis will come to an end soon.”
Another aspirant, Dele Momodu, expressed the willingness of the former contestants for the PDP ticket to meet with Wike to resolve the crisis in the party’s interest.
“I love Wike and I will continue to love him. We (presidential aspirants) will like to meet with him but the roads are blocked given the statements coming from him. So, it is not easy but the intention, willingness, and readiness are there. We will not give up no matter what,” Momodu stated.
A former senate president, Bukola Saraki, who also contested the presidential ticket and was appointed a special envoy to Atiku on September 26, expressed determination to do all that was necessary to make the PDP united ahead of the 2023 presidential election.
Speaking through his media aide, Yusuph Olaniyonu, the former Kwara State governor said, “The disagreement within the party is a family issue. Somebody like Dr Saraki is close to all the individuals involved and he gets on well with all of them. As a loyal party man, he is determined to work with others to ensure the party goes into the 2023 polls as a united party.”
Minister of Finance, Budget and National Planning, Zainab Ahmed, has rejected a plan by the Central Central Bank of Nigeria (CBN) to redesign naira, warning the apex bank of its consequences on the country’s troubled economy.
Ahmed expressed her opposition to the policy in response to a question raised by Senator Opeyemi Bamidele during the 2023 budget defence session she had with the Senate Committee on Finance.
The Minister warned CBN of the consequences that may arise from the exercise.
Senator Bamidele had in his question, told the Finance Minister that barely two days after announcement of the policy by CBN , repercussions of it on the value of naira to US dollar was being felt.
Recall that the CBN Governor, Godwin Emefiele had Wednesday dropped the hint, revealing that the incoming exercise would redesign the Nigerian currency, starting from N200 denomination to N1,000 notes.
Former President, Dr. Goodluck Jonathan has called for support for victims of the devastating flood that has killed hundreds and destroyed several properties in many states across the country.
The former President in a statement released by his office on after he visited Otuoke, his community and other affected areas in Bayelsa State, lamented that this year’s heavy flooding resulted in an unprecedented humanitarian crisis in most affected states, adding that the situation required urgent action and collaboration by all stakeholders.
Jonathan noted that many states are now helpless, including Bayelsa, his home state with more than 70 per cent of its land area already submerged.
The former president said: “I sympathise with the victims of this year’s flood across many states of the federation who have lost loved ones and properties worth millions
The worsening humanitarian crisis in the affected states calls for urgent action and collaboration by all stakeholders.
“I am touched by the dire situation in in some of the affected states, especially my home State Bayelsa where almost all the local government areas are submerged in water and the East-West Road section leading to the State has become impassable, creating scarcity of food and essential commodities.
He added: “Today, I visited Otuoke, my community and a few other communities in Bayelsa State to assess the impact of the flood. It is still a depressing situation in many of the affected communities because of the magnitude of the flood and the disruption and destruction it has caused.
“This is a moment of crisis; we need to work in unity to achieve the goal of giving hope and providing succor to all victims. I urged all citizens of goodwill and humanitarian agencies to demonstrate solidarity with these victims and provide support to those affected.”
Nnamdi Kanu, the leader of the Indigenous People of Biafra (IPOB) will remain in the custody of the Department of State Services (DSS) following the pronouncement by the Appeal Court.
The Appellate Court on Friday upheld the Federal Government’s application for stay of execution of the October 13 judgment which set Nnamdi Kanu free.
Justice Haruna Tsanammi also ordered that the result of the ruling be forwarded to the Supreme Court within seven day for expeditious hearing.
By the ruling, Kanu is expected to remain in the custody of the Department of State Services pending when the Supreme Court hears the case.
The Federal Government on Wednesday, said it would take about 30 years of consistent investment to be able to control the current flood menace in different parts of the country.
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Minister of Water Resources, Engr. Suleiman Adamu, disclosed this after the Federal Executive Council (FEC) meeting, presided over by Vice President Yemi Osinbajo.
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The Minister, who said he made a presentation to the Council jointly with the Ministry of Humanitarian Affairs, Disaster Management and Social Development, also noted that this sort of disaster cannot be prevented but the government can only minimise its impact.
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He said despite the early warning system in place, a lot of capital-intensive initiatives still need to be done in the future to avert the consequences of flood disasters, noting it is not something that can be achieved under one administration.
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He said the present administration was already working on a flood management masterplan that will take at least three years to complete. While noting that flood victims ignored warnings to evacuate, Suleiman also blamed tree felling and degraded soil for the massive impact of this year’s floods in the country.
Conference Of Nigeria Political Parties (CNPP) has hailed the Central Bank of Nigeria (CBN) over its sudden move to redesign high denominations of Naira notes, including N200, N500 and N1,000 banknotes.
The CNPP in a statement issued in Abuja by its Secretary General, Chief Willy Ezugwu, noted that “only politicians who intended to buy votes and financially induce electoral officials, the ignorant of the import of the policy or beneficiaries of proceeds of crimes, including drug barons and kidnappers, will kick against the move by the CBN
According to the umbrella association of all registered political parties and political associations in Nigeria, “the effort of the CBN to control the amount of money in circulation, where N2.7 trillion out of the N3.3 trillion currency in circulation was said to be outside the vault of commercial banks across the country, and are found to supposedly be held by members of the public, is of high risk for the country’s economy and her internal security.
“It is therefore obvious that many politicians, especially since 2015, amassed illicit wealth and deplated the national commonwealth to the extent that the currency in circulation has more than doubled since 2015, rising from N1.46 trillion in December 2015 to N3.2 trillion as of September 2022, according to the CBN data.
Certainly, this is unacceptable in any economy controlled by sane financial experts.
“The CNPP is glad that the timing for this Naira notes redesign is right as there is no better time than in an election year, especially where politicians have made vote-buying an alternative to convincing the electorates through their track records and capacity to govern beyond rhetoric as well as a commitment to selling the manifestos of their political parties during campaigns.
“In recent times, rather than candidates and their supporters work towards convincing electorates to vote for their preferred political parties, they resort to use of derogatory words against the opposition or fan the embers of ethnicity and religion.
So, as dramatic as the move may seem, the CNPP is totally in support of the CBN and the CBN Governor, Mr Godwin Emefiele on this policy initiative and hereby call on all security agencies, including the Directorate of State Services (DSS), the Economic And Financial Crimes Commission (EFCC) and the ICPC to redouble efforts to reduce insecurity and electoral corruption by placing all politicians contesting in the 2023 general elections on perpetual surveillance.
“We urge the anti-graft units of all security agencies and commissions to use the opportunity created by the new and existing currencies exchange window from December to January 31, 2023 when the existing currencies shall cease to be a legal tender, to monitor illicit campaign financing, money laundering, terror financing, rasom to hostage takers and drug barons.
In the same vein, bank managers should be banned by the CBN from any form of home delivery of cash to citizens and corporate organizations until after February 1, 2023 to ensure that the country reaps the gains of the CBN monetary policy.
“We urge the CBN to ensure that all exchanges of old notes with new notes should go through the bank accounts of the individuals exchanging large sums of money to as part of efforts to track illicit funds as such individuals and corporations can be made to explain how they came about the large sums of monies to security operatives, especially the EFCC.
We therefore call on all well-meaning Nigerians, patriotic Whistleblowers and security agencies to ensure that this lifetime opportunities leads to sanity in the Nigerian economy and the political arena as part of efforts in deepening democracy and reduced the number of drug lords and corrupt politicians in office from 2023 general elections.
“We equally commend President Muhammadu Buhari for his approval of the planned redesign of the currency notes, especially at this time”, the CNPP stated.
The Economic and Financial Crimes Commission, EFCC, has warned Bureau de Change (BDC) operators to be wary of currency hoarders who would be offloading money illegally stashed.
The development is currently generating mixed reactions from concerned Nigerians.
Speaking on the matter, the EFCC Chairman, Abdulrasheed Bawa in a statement commended the move by the apex bank, saying it is “a well-considered and timely response” to the challenges of currency management in the country.
He said, “It is pertinent to issue this stern warning to Bureau de Change operators to be wary of currency hoarders who would attempt to use this opportunity to offload the currencies they had illegally stashed away.”
According to the EFCC boss, the Commission would spare no effort to arrest and prosecute any financial services operator who violates extant laws and regulations.
Two terror suspects have been arrested by the Department of State Services operatives who stormed the Trademore Estate in the Lugbe area of the Federal Capital Territory, Abuja, on Monday.
The security operatives were said to have shut the entrance and exit gates of the estate while the operation lasted.
Our correspondent gathered that the two suspects said to be siblings were taken into custody on an allegation of terrorism.
This happened less than 24 hours after the United States and the United Kingdom warned of a possible terror attack in Abuja, especially targeted at government buildings, places of worship and schools, among others.
Following this development, the US government has authorised the departure of its non-essential employees and their families from Nigeria.
The US State Department announced this in its updated Nigeria travel advisory on Tuesday evening.
Residents of Trademore Estate who spoke to The PUNCH on Wednesday claimed the operation was carried out by the DSS and some foreign security operatives.
Speaking on the condition of anonymity, a resident disclosed that residents of the estate were practically held hostage during the operation.
He stated, “We were in our houses when our estate was locked up. They did not allow us to go out and they didn’t allow people to come in. Those that came for the operation were DSS and some American soldiers. What I heard was that they were looking for some suspected terrorists. When they finished what they were doing, all we saw was that they drove away with some people from the estate.”
Also, a message on the estate’s Whatsapp platform sighted on Wednesday by one of our correspondents urged residents to be vigilant and ensure they know their neighbours.
It partly read, “It’s no longer news that there was a high-powered sting operation in Phase 3 this afternoon, culminating in a complete shutdown of our estate. A combination of the American Army and our DSS team were responsible.
“We are unable to give full details of the reason(s) behind the operation; however, we can confirm that there was an allegation of terrorist activities. It is therefore desperately incumbent on every resident to remain vigilant, know your neighbours and report any suspicious movement, person or activities to the exco, street reps and/or the police.
‘’We will continue to do our utmost best to keep the estate safe for all of us. Everyone is responsible for security and there should be no iota of abdication of this responsibility.”
When contacted, the Chairman of the Estate, Adewale Adenaike, confirmed the security operation but declined further comment.
He said, “I can confirm to you that DSS personnel and foreign soldiers visited our estate. You can contact them to get the details of what happened. Let me, however, use this medium to urge residents to be calm and vigilant. The rumours of a planned attack on the estate are not true.”
Calls to the DSS spokesperson, Peter Afunanya, were not answered. He has yet to respond to a text message sent to him on the matter.
Force spokesperson, Olumuyiwa Adejobi, told one of our correspondents that, “All diplomatic corps in Nigeria are protected by the police, and operatives also protect the embassies. In fact, before now, we have deployed armoured personnel carriers to protect the US Embassy and others. Interestingly, the embassies are strategically located in the Diplomatic Drive and well-fortified.”
Meanwhile, the US in an advisory on Tuesday said, “On October 25, 2022, the Department authorised the departure of non-emergency US government employees and family members due to the heightened risk of terrorist attacks.
“The US Embassy Abuja continues to have limited ability to provide emergency assistance to US citizens in Nigeria. The US Consulate in Lagos is providing all routine and emergency services to US citizens in Nigeria.”
Despite the security concerns, schools in Abuja have not been shut down, the Publicity Secretary of the National Association of Proprietors of Private Schools, Abuja Municipal Area Council, Paul Edoh, has confirmed.
It was learnt that some parents had requested the immediate closure of schools in Abuja until the situation was brought under control.
However, Edoh explained, “Schools have not been closed down, except for schools within areas like Bwari; not all schools, but schools in the hinterland. But the Federal Government has been able to see how to curtail that and the employment of local vigilante groups has also helped in stamping out the situation.
‘’Private schools within that area are always living in fear. Public schools are more prone to attack. The security beef-up around the schools in Abuja is at zero level. I can boldly tell you that you will hardly see security patrol in some local areas.”
‘’Given the current security situation, and the foreign embassies’ declaration, or perhaps order, it has adversely affected private schools within the Abuja environs. Now some staff of these embassies have withdrawn their children from the top big schools in Abuja here,’’ he disclosed.
Meanwhile, the Federal Government on Wednesday said citizens and non-citizens alike are safe in Nigeria.
The Minister of Information and Culture, Lai Mohammed, stated this in response to questions from correspondents on the security advisories at the Presidential Villa.
Mohammed said “Now, of course, this so-called travel advisory as far as we are concerned as a government, we have in the last few months, taken a firm handle on security.
“But I want to reassure citizens, non-Nigerians and Nigerians living in this country, that security agencies are on top of this matter. Of course, the terrorists would not stop to try to embarrass or intimidate the government but what I am saying is that this country is safe and there is no cause for alarm. No cause to panic.”
Governor Samuel Ortom of Benue, has urged former Vice-President Atiku Abubakar to apologise for lying against him.
Mr Ortom said this when he received a group, under the aegis of Jemgbagh Youths, on a protest at the Government House, Makurdi, over alleged lies against Mr Ortom by the PDP presidential candidate.
He stated that Mr Atiku should make a public apology for alleging that his brothers were stealing herdsmen’s cattle in the state.
Immediately I heard the news, I sent him a message on WhatsApp and he apologised to me.
“I told him to make the apology public but he declined, and I am saying he cannot undress an elder like me in public and then come back to dress me in a room.
He lied against me and I take exception to that because what he said is hate speech,” Mr Ortom said.
The governor faulted Mr Atiku’s claim that he issued a blanket condemnation of all Fulani people as bad, saying he never said that.
Some Fulani people are my friends, I trust them to a point of even taking them to my bedroom and I have not sent any Fulani man away from Benue.
“It is only the foreign ones that came from Mali, Mauritania among others that are terrorising our people.
“Atiku, you have been very unfair to Benue people and Fulani people alone cannot make you the president,” he said.
Mr Ortom said however, that in spite of the crisis in the Peoples Democratic Party (PDP), he would work toward its victory at all levels in the state.
He stated that no matter what happened, a baby cannot be thrown away with the birth water.
I am committed to the victory of the party at all levels in the state,” he said.
He commended President Muhammadu Buhari for condemning the attacks by suspected herdsmen in Gbeji, Ukum Local Government Area (LGA) of the state.
Earlier, the Chairman of Gboko LGA, Isaac Mtom, said the group visited the governor to identify with him over his developmental strides as well condemn Mr Atiku’s outburst.
Mr Mtom said Atiku’s statement clearly showed that he did not mean well for Benue people.
