Opeyemi Deborah muttered some words of frustration as she lamented about the redesign policy. Her abortive struggle to withdraw from four different Point of Sales (POS) stands in Ibokun, a town in Osun State, is written all over her face..
Every word she altered came out with absolute frustration, she squeezed her face, illustrating her nostalgic experience the day she was coming back to Osogbo from Ere Ijesha, Osun State.
Ere Ijesha is a small town in Osun State, area of Oriade Local government. Journey to the town from Osogbo, the capital of Osun State, will take about one hour.
As a single mother, she works as a receptionist at the newest and popular hotel in Ere Ijesha, Prinja Hotel, while she visits home on a weekly basis to care for her 7-year-old and 5-year-old kids.
One day at work, she said she got a call from her 70-year-old mother that her two kids had not eaten for two days as they had nothing at home.
“I had to go home to sort my children out, I was told they had not eaten for days, I was shaking and sweating,” she said
Unfortunately, she had no cash with her, She took the bold step to the street, where she begged a bus driver to help her but promised to pay the driver when they get to a neighbouring town, Ibokun, with the idea that she would withdraw some cash at any POS stand in Ibokun.
“I became a mad woman immediately on the road, I was crying profusely as I couldn’t get any POS with cash around Ibokun, I felt like the earth should just swallow the whole of Nigeria,” she explained bitterly
Mrs Deborah is one of thousands of Nigerians who have suffered and been affected by the Naira redesign policy implemented by the Central Bank of Nigeria (CBN).
Background Story
On October 26,2022, the CBN launched a new policy, which was targeted at redesigning N200, N500 and N1000 Naira notes. This new policy was said to be implemented to reduce counterfeits, regulate circulation of the currency, and also to tackle corruption in the country.
The CBN claimed that one of the major factors for formulating the policy was that, N2.73 trillion of the N3.23 trillion currency in circulation in Nigeria could not be found in the bank vaults.
Godwin Emefiele in the bid to actualise this policy, informed the country that the action is authentic and backed/approved by the president.
Hence, the distribution of the new Naira notes will commence on December 15, 2022. The old note would cease to be used for transactions, as it would no longer be a legal tender on January 31,2023.
Since the announcement and CBN deadlines declaration on the old notes, many Nigerians had started rejecting the now old note even before the time, making it difficult for others to exchange their goods, products, or engage in their normal daily activities, which includes transportation.
As of the due time, the new Naira notes failed to be in circulation, this made the CBN to postpone the deadline date to February 10. Yet, the money in circulation, could not meet up.
Protests erupted in different places in the country, as people suffered and banks failed to release cash or the new notes.
In reaction to this the CBN along with the commercial Banks received criticism, while some chaotic reactions were instigated Against them. Others criticised the federal government.
To many people like Deborah, the law has cheated the less privileged. Despite the interference of the Supreme Court and some state government. The situation deepens daily.
What the aw says about the policy
The procedures in redesigning the Naira note in Nigeria, the responsibilities of the CBN and the role of the president are all stipulated in the Federal Republic of Nigeria Official Gazette, Act No 7, short title, Central Bank of Nigeria Act of 2007.
According to the CBN Act, 2007, 20(3) “Notwithstanding sub-sections (1) and (2) of this section, “the Bank shall have power, if directed to do so by the President and after giving reasonable notice in that behalf, to call in any of its notes or coins on payment of the face value thereof and any note or coin with respect to which a notice has been given under this
sub-section, shall , on the expiration of the notice, cease to be legal tender, but,
subject to section 22 of this Act, shall be redeemed by the Bank upon demand”.
In regard to this, the Apex bank with reasonable notice and upon the president directive could determine the expiration of the currency.
Requirements for Redesigning
Under the CBN Act 2007, section 18(a) (b), “the bank shall arrange for the printing of currency notes and the minting of coins; as well as issue, re-issue and exchange currency notes and coins at the Bank’s offices and at such agencies as it may, from time to time, establish or appoint”.
Thus, the sole responsibility of issuing or re-issuing Nigeria currency lies on the CBN and its board’s intention. This simply means the CBN has the right to determine as at any time to call in any currency notes for reasonable contents.
Brief History
In reference to the past, it’s not the first time the Naira currency will be experiencing restructuring or redesigning. The CBN had been conferred the responsibility of currency issuance since it took over from the West African Currency Board, WACB, in July 1st, 1959.
Since then the face of the Nigerian currency has experienced changes till date.
During proceedings or hearing the constitution of the federal republic of Nigeria 1999, provided jurisdiction for the Federal High Court, under the 1999 constitution section 251-(1)(d), which says, the federal high court can hear on issue “connected with or pertaining to banking, banks other financial institutions including any action between one bank and another, any action by or against the Central Bank of Nigeria arising from banking, foreign exchange, coinage, legal tender, bills of exchange, letters of credit, promissory notes and other fiscal measures; Provided that this paragraph shall not apply to any dispute between an individual customer and his bank in respect of transactions between the individual customer and the bank”
Nevertheless, Aside from lawmaking, the legislature also has the role to determine the condition of any executive body or agency as long as their policy is affecting the people.
Thus gave them the right to sit and check the excesses of the CBN policy.