NAIRA REDESIGN: CBN, BANKS READY FOR TRANSITION, TAKE INITIAL STEPS

BY LINE:HUNPE YEMAREN GABRIEL 

As the Grime raised by the plan of the CBN( Central Bank of Nigeria) to redesign the local currency begins to settle into the reality of managing the already concluded matter, implementation has come to the front burner.

Also the aggregation of contending positions on the issue appears to show that the change was more desirable than the consequences of retaining the current state of the local currency.

Already the grime raised by the contrary position of the Finance Minister, Mrs Zainab Ahmed, on the CBN’s decision making process on the matter has died as quickly as it emerged following the position of President Muhammadu Buhari in favour of the apex bank, while other experts also backed the CBN.

Moreover, the CBN appears set to implement the Naira change as banks begin compliance with its directive to get ready for a smooth transition to the new currency note.Last weekend all the commercial banks opened shops for customers, a development which may have helped some depositors to begin the process of aligning their cash holdings with the expected withdrawal of old Naira notes in the weeks ahead, Some banks are already reporting rising cash deposits though it was not yet clear the sources of those deposits.

There is also no sign of rush or banking hall surge as would have expected if the experience of 39 years ago when the last Naira change happened.

Buhari, in a statement by his Senior Special Assistant on Media and Publicity, Mallam Garba Shehu, had said he is convinced the nation will gain a lot by redesigning the currency.

Speaking in a Hausa radio interview with Halilu Ahmed Getso and Kamaluddeen Sani Shawai, Buhari said reasons given by the CBN convinced him that the economy stands to benefit from a reduction in inflation, currency counterfeiting and the excess cash in circulation.He said he did not consider the period of three months for the change to the new notes as being short.

According to him, “people with illicit money buried under the soil will have a challenge with this, but, workers, businesses with legitimate incomes will face no difficulties at all.”

But the Bank Customers Association of Nigeria, BCAN, feels the time frame for withdrawing the old notes was too short. They have, therefore, appealed to the CBN to extend the deadline for returning of the old notes.

The reasons adduced by CBN are genuine and are supported by facts we all know. So, we in BCAN have no problem with the intention/plan of CBN. All we demand is that the exercise should be carried out at little or no inconvenience to the banking public and the generality of Nigerians. BCAN members will cooperate.

However, timeframe for the exercise should be scrutinized to ensure it is adequate,all those who will render services in the implementation should consider it a serious national assignment and thus be very, very dutiful. The CBN (Central bank of Nigeria) should try to predict likely challenges that may arise and create solutions.There is hardly any doubt that it will be successful.

Published by shodolamu olawale quadri