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Jan 31 Deadline For Old Naira Notes Remains, CBN Insists …Raises Interest Rate To 17.5%
The Central Bank of Nigeria (CBN) has said that its January 31, 2023 deadline for the validity of the old N200, N500 and N1,000 notes remains.
The CBN Governor, Godwin Emefiele, announced this after the apex bank’s Monetary Policy Committee (MPC) meeting in Abuja, yesterday.
The CBN also raised the Monetary Policy Rate (MPR), which measures interest rate, to 17.5percent.
According to him, kidnapping and ransom-taking have reduced since the three banknotes were redesigned.
He also said the time given for the swap of the old naira notes with new ones were enough for Nigerians to go to commercial banks and get new notes.
The CBN on October 26, 2022 had announced its plan to redesign the three banknotes. President Muhammadu Buhari subsequently unveiled the redesigned N200, N500 and N1,000 notes on November 23, 2022, while the apex bank fixed January 31 deadline for the validity of the old notes.
There have been concerns from many Nigerians over the slow spread of the three new naira notes as the January 31, 2023 deadline approaches but the apex bank has insisted that the date stands.
The CBN also recently directed commercial banks to halt over-the-counter payment of the new notes and load their Automated Teller Machines (ATMs) with the redesigned naira notes to boost circulation.
The apex bank also launched a cash swap programme nationwide to enable those in the unbanked areas to exchange their old notes for new notes before the deadline.
On the wide clamour for the extension of the deadline for old currency usage, the CBN Governor said: “Unfortunately, I don’t have good news for them. My apologies. We can’t shift the deadline. Just like Mr President has said on some occasions, 90 days is enough for people to get their money into the bank. We ensured the banks extended banking hours and opened on Saturdays to accept the old notes. But they did not see the rush. Only the same normal deposits. So, no need for a shift”.
On the scarcity of the new naira, Emefiele said the CBN holds three meetings with the banks every week to address the challenge.
“We saw that the banks were paying the new notes to their close customers and we stopped it and said, feed it to the ATMs. It has worked. In the initial stages, they were seeing old notes and after a week, we said that only needed notes should be in ATMs and we increased the volume of new notes.
“We told the banks that we want to have zero old notes in your vaults by the 1st of February. There are adequate new notes available. Our mint is producing and we are supplying.
“I held a meeting with state governors and some said no banks in riverine areas and upland areas. But we have 1.4million super agents for cash exchanges.
“We’ve put this in place. A week ago, we told our directors and deputies to go around the country for mass sensitisation in markets, churches and mosques for weeks running. We remain focused on the weak and vulnerable even after the 31, we shall ensure new naira permeates every nook and cranny of Nigeria.
“In 2015, there was N1.42trillion currency in circulation and $3.2trillion in 2022. More than double! N2.7trillion of that is outside the banks. People are keeping vaults in their homes. They can’t be banks in their homes. We can’t allow that. They should release it back to the CBN. Ransom and kidnapping are reducing. I could be wrong.
“We have N1.5trillion back in banks and perhaps this week, we hope to get N2trillion in.
“Just bring it, no one will harass you. We’ve begged EFCC and ICPC to let us do our job. And nothing will happen to you. I promise you that on my honour,” he stated.
On the MPC decisions, Emefiele said the committee agreed to raise the interest rate from 16.5percent to 17.5percent, in a move towards taming the raging inflation in Nigeria, currently pegged at 21percent.
The MPC kept the asymmetric corridor at +100/-700 basis points around the MPR.
It also retained the Cash Reserve Ratio (CRR) by 32.5percent while the liquidity ratio was kept at 30percent.
“Tightening was the way to go. Our inflation target is 7-10percent and so we can’t rejoice at 21percent.
“We can hold or loosen when the inflation rate goes down. But right now, we remain aggressive on rates”, Emefiele explained.
However, the House of Representatives, the Senate and the Nigeria Governors’ Forum have asked the CBN to extend the date to enable more Nigerians get the new notes.
The Senate, yesterday, urged the Central Bank of Nigeria, to extend the mop-up of old Naira notes to July 31, 2023.
The upper legislative chamber, through an adopted resolution, arrived at the new deadline after a thorough debate.
This was against the backdrop of the earlier resolution in December, 2022, which the lawmakers said, was jettisoned by the apex bank.
The denominations of N200, N500 and N1000 notes have been redesigned and are already in circulation.
The redesign has been trailed by heavy criticisms, citing the timing as insensitive as a result of the general election coming up next month.
Meanwhile, the call for fresh extension was fallout of a motion sponsored by Senator Sadiq Suleiman Umar representing Kwara North Senatorial District, in which he said: “the new notes were not enough in circulation”, warning that if the deadline was not extended, there would be chaos in many parts of the country.
The House of Representatives hasalso asked the Central Bank of Nigeria to extend the deadline for acceptance of the old naira notes by six months.
The House also resolved to invite some managing directors of some banks and the CBN to brief the leadership of the House on the availability of the notes.
The decision was sequel to a motion of urgent public importance moved by Sada Soli, a lawmaker from Katsina State.
He stated that the January 31 deadline set by the CBN was not feasible as traders have started rejecting the old notes in his constituency.
He stated that banks and other financial institutions do not have the capacity to deal with the rush.
Speaking in support of the motion, Ahmed Jaha from Borno State informed the House that CBN officials were in his constituency to help, however, the measure was not enough.
“The CBN are in my constituency helping people to swap the old notes. The amount taken to my constituency, the amount is not enough. For 10 years, my constituents have not had access to banks.
“We have a lot to lose if the deadline is allowed to stand,” Jaha said.
The Speaker of the House, Hon Femi Gbajabiamila, in his reaction to the motion, said there was a need for an investigation into what was stalling the disbursement of the new notes.
“CBN is making spirited efforts. They were at the central mosques in Lagos. I am not sure if it is enough. As they say, the road to hell is paved with good intentions. The timing is what we have problems with.
“There is a need to review the policy. I think there is a need to add another prayer. The bank is saying they don’t have the money but the CBN is saying they have the money. We should invite the bank MDs to brief either the leadership or a small committee,” he said.
The House consequently resolved that an ad-hoc committee headed by the Majority Leader, Hassan Doguwa, should meet with the invited MDs.
The Rivers State Chief judge, Justice Simeon Chibuzor Amadi has granted pardon to six inmates standing awaiting trial at the Port Harcourt maximum correctional center.
The six lucky inmates granted pardon on Tuesday by the state Chief Judge included Nwekeala Chizoba, Samuel Emmanuel, Aniete Kelvin, Ebube Fubara and Goddey Okpara who were on awaiting trial as murder suspects and have all spent between 10 years to seven years in the custody without a proper information filed against them in the court.
Justice Amadi during a special gaol delivery exercise last Tuesday at the Port Harcourt Maximum Correctional Centre opined that the special gaol delivery was part of activities lined up to commomerate the 2024/2025 legal year in the State and restated the commitment of the state judiciary in decongesting the correctional centre and ensuring that those inmates who are not supposed to be there are removed from the custody.
The state chief judge stressed the need for all stakeholders to work together to build a society that supports rehabilitation and gives a second chance to anyone or group of people who have fallen short of the expectation of the law and have been punished accordingly.
He stressed that the National Judicial Council(NJC) encourages judges to pay more attention to criminal matters to enable them to decongests the correctional facilities, noting that since his assumption into office, his administration has been able to reduce the number of inmates in Nigerian Correctional Centres and the Port Harcourt Correctional Centre in particular, to less than 2,000 as against the over 4,000 inmates previously in the faculty.
According to him, “as they release the deserving inmates, they affirm their commitment to justice, compassion and rule of law but that they must not forget the fundamental principles of justice delivery system which is truth and fairness, integrity and equality before the law.”
I encourage you all the released inmates to return to your families and become better citizens. You must not engage in action that will return you all back to prison. Let me say that while the judges show empathy to you all, it does not absolved individuals from being held accountable for actions against individuals, corporate organisations and state which the law frowns at, ”he stated
The Chief Judge thereafter stood down the exercise to enable the DPP to intervene to case files following the fact that majority of the persons listed to benefit from the exercise are facing murder charges and adjourned to a date that will come before December.
Earlier in his goodwill message, the outgoing state Comptroller of Nigerian Correctional Centre, Port Harcourt, Felix Lawrence, who was recently promoted to the rank of Assistant Controller General, commended the state judiciary led by Chief Judge, Justice Simeon Chibuzor Amadi for their continuous effort aimed at ensuring justice and decongesting the facilities.
Other activities lined up for the event included special church service at St Paul’s Cathedral , Anglican Communion, Rebisi Port Harcourt, inspection of guard of honour by the state Chief Judge mounted by officers of the Nigerian police and a special court session held at the ceremonial court hall.
By: AkujobiAmadi
The Director General of Rivers State Bureau on Public Procurement (RBoPP), Dr. Ine Briggs, has explained that the Sir Siminalayi Fubara administration plans to enforce transparency in governance through public procurement.
Speaking at a one-day Public Procurement Enlightenment workshop organised in collaboration with the State Local Government Service Commission for newly elected chairmen, vice chairmen, secretaries and leaders of legislative assemblies, Dr. Briggs said it is key for grassroot development.
She stated that the Sir. Fubara administration plans to reduce wastage and at same time infuse efficiency in public expenditure.
The RSoPP DG said the local government political office holders remain key drivers in the new vision hence the workshop is to arm them with knowledge on how to execute projects in tandem with needs of the people.
“ Your role in the prudent management of public resources is, therefore, not just administrative it’s the cornerstone of delivering the dividends of democracy. Every procurement decision you make must reflect a commitment to fairness, transparency and accountability” Dr. Briggs submitted.
One of the key goals of the administration she further reminded the participants was to use their offices to foster economic growth through public procurement.
She warned that the law establishing the agency empowers it to penalise defaulters, but that what is more important is voluntary compliance to the laws.
In addition to that, she said urged the local government council leaders that champion the practice and implementation of public procurement law.
On his part, Acting Chairman of Local Government Service Commission, Pastor GoodLife Ben Iduoku averred that the aim of the workshop is to arm key stakeholders in the local government system to generate new ideas, innovation and strategies in tandem with government policies and programmes.
The workshop dealt on various topics on procurement planning, methods, Understanding Bid Process, including types of Construction Contracts and law.
Some participants were awarded excellence and meritorious awards as part of the programme.
By: Kevin Nengia
The 19th anniversary of the National Association of Proprietors of Private Schools (NAPPS), Rivers State Chapter, recently ended in Port Harcourt in grand style, with participants from various schools including proprietors, the academia, civil society groups and top government functionaries charting the way forward for educational improvement.
The 19th NAPPS anniversary christened, ‘Innovation and Adaptation: Transforming Challenges Into Opportunities’ was held at Casoni Hotels, Port Harcourt.
In his remarks, the Chairman of the Rivers State Chapter of the association, Dr. Jaja Adafe Sunday expressed gratitude to the members and executives for their untiring efforts towards the achievements of the body.
He sought the intervention of government on the lingering crisis on the economy as it is affecting the running of schools.
He decried high cost of things including fuel and raw materials which has adversely affected the running of schools and payment of teachers.
Dr. Sunday hinted that the current economic situation in the nation is biting hard on the operations of schools, saying inflation, removal of fuel subsidy, fuel scarcity, poor electricity supply, tariffs and lack of government grants are some of the challenges faced by schools, and urged the members to brace up to the challenges, as it is the panacea to building a brighter future.
Guest speakers from the health sector and the academia thrilled the gathering on the essence of basic education which they said is the key to national development.
Former Dean of the Ignatius Ajuru University of Education, Professor Azuru and the Chief Medical Director of Meridian Hospitals, Dr. Odo Iyke were some notable guest speakers who delivered lectures at the occasion.
Some distinguished proprietors also got special recognitions and awards.
The 19th anniversary cake was cut by the Rivers State NAPPS Chairman with representatives of the state government assisting.