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Nigerian Economy Loses N20 Trillion to Naira Redesign Policy – Experts

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Nigerian Economy Loses N20 Trillion to Naira Redesign Policy – Experts
CBN Governor, Mr. Godwin Emefiele with President Muhammadu Buhari

Since the onset of the cash crisis that trailed naira redesign policy of the Central Bank of Nigeria, the Nigerian economy has lost an estimated N20 trillion.

Centre for the Promotion of Public Enterprises (CPPE) disclosed this in a note made available to BUSINESS METRICS on Sunday. The statement was signed by Muda Yusuf, the chief executive officer of the CPPE.

According to the Centre, these losses arose from the deceleration of economic activities, the crippling of trading activities, the stifling of the informal economy, contraction in the agricultural sector and the paralysis of the rural economy.

It added that there are also corresponding job losses in hundreds of thousands.

This is coming more than a week after the Supreme Court had ordered that the Central Bank of Nigeria (CBN) to extend validity of N200, N500 and N1,000 old naira notes as legal tender till December 2023, contrary to the March 10 deadline it earlier set.

The centre also condemned the calculated muteness of President Muhammadu Buhari and the CBN on their compliance with the court order, leaving the people confused on whether nor not to spend and accept the old naira notes.

According to the centre, CBN has mopped of 70% of cash in the Nigerian economy in its bid to phase out the old notes.

However, the apex bank has failed to provide adequate replacement to in form of the redesigned denominations to swap the old notes.

CPPE thus kicked that the protracted acute cash scarcity has not only crippled economic activities in the country, but has also become a major risk to the livelihoods of most Nigerians.

It lamented that millions of citizens have slipped into penury and destitution as a result of the disruptions and tribulations perpetrated by the currency redesign policy, especially the mopping up aspect of it.

It explained that Nigerians continue to groan in the adversity inflicted by the acute cash shortage amid rejection of old currency notes by market operators, refusal by banks to accept the old notes, silence by the presidency on the supreme court judgement; and absence of official pronouncement by the CBN on the issue.

While it noted that Nigerians have not been this traumatized in recent history, it added that retail transactions across sectors have become nerve-wracking and distressing as payment system challenges persist.

It said: “Evidently, President Buhari did not seem to appreciate the gravity and enormity of the suffering and pain that Nigerians have been experiencing since the onset of the currency redesign policy.

“We again plead with the President to immediately intervene to put an end to the devastating and traumatic outcomes of a repressive, poorly conceptualized and badly implemented currency redesign policy.  We request the following immediate actions.

“The CBN should be directed to immediately inform the Nigerian public that the old currency notes [alongside the new notes] remain legal tender until the 31st December 2023, in line with the supreme court judgement.

“The CBN should be directed to officially communicate the outcome of the Supreme court judgement to the banks and affirm compliance with the judgement.

“The president should publicly empathize with Nigerians on the unwarranted and inexcusable pain and suffering that the currency redesign policy has wreaked on them.”

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