The governors made their positions known in a statement signed by the Sokoto State Governor and Chairperson of the NGF, Aminu Tambuwal.
The 36 state governors of the Federal Republic of Nigeria under the platform of the Nigeria Governors’ Forum on Tuesday urged President Muhammadu Buhari to extend the timeframe for the implementation of the Naira Redesign policy.
The governors made their positions known in a statement signed by Sokoto State Governor and Chairperson of the Nigeria Governors’ Forum, Aminu Tambuwal.
In December 2022, the Central Bank of Nigeria (CBN) announced new limits for cash withdrawal, specifically limiting daily withdrawals to N20,000 for individuals and N100,000 for corporate organisations.
Similarly, the CBN announced the re-designing of the N200, N500 and N1000 and specified an implementation period of 45 days before shifting the deadline to 10 February.
But since it introduced the policy, Nigerians have had difficulties accessing the new notes. The development has also worsened the hardship being faced by Nigerians, as there was an existing fuel scarcity crisis. These challenges have now led to protests and demonstrations in some parts of the country.
The NGF, in its statement Tuesday, said that it does not doubt the good intention of the CBN to curb the excesses emanating from cash transactions and the imperative to migrate the country to digital financial services and cashless economy.
“We note that this policy is intended to address the contradictions in our fiscal environment including the dysfunction that has resulted from large volumes of cash circulating outside the banking system, estimated at over 80%,” it said.
“Understandably, the policy is designed to have been aimed at addressing the shortage of clean banknotes, the attendant negative perception of the CBN, the increased risk to financial stability and the threat of counterfeiting.”
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However, the forum acknowledged the concern shown by experts and renowned institutions over the implementation of the policy as poor execution of the policy would hurt the economy and have a disproportionate impact on the most vulnerable.
“Mr. President, a State by State analysis has shown that this policy will affect several intra State security arrangements which basically depend on cash transactions to ensure effective implementation,” the forum said.
“Your Excellency, we also find the timing of these policies untenable. The new currency was unveiled between mid-December 2022 and January 2023, which essentially allows a 45-day window for implementation.
“This period also coincides with the Christmas and new year festive season, which is traditionally a time of heightened commercial activity. The speed of implementation of the policy is a recipe for anarchy in the country and we urge a re-think of the policy.”
