Emefiele became a target of the DSS after introducing the cash withdrawal limit. He has, however, remained abroad on a sick leave but has from his base in the U.S., ordered a review of the policy with individual weekly withdrawal limit raised to N500,000, while for companies it became N5 million weekly.
By Ishaya Ibrahim, News Editor
The year 2022 started with Naira exchanging N415 to a dollar in the parallel market, diesel sold N288 per litre, and bread not more than N500 for a loaf.
At the close of 2022, Naira exchanged N755 to a dollar in the parallel market, diesel N820 per litre and a loaf of bread N1, 000.
The year 2022 was harsh economically for Nigerians. The Russia-Ukraine war accounted for most of the hardship, with insecurity taking part of the blame.
Naira redesign
The Central Bank of Nigeria (CBN) worked overtime in the year 2022, taking monetary and even encroaching on the fiscal space to tame inflation.
For instance, the CBN announced the redesign of N1,000, N500 and N200 notes to force those who have stashed cash at home to get them into the banking vault.
The CBN Governor, Godwin Emefiele said the currency redesign was necessitated by the fact that over 85 per cent of currency in circulation are outside the vaults of commercial banks.
“To be more specific, as at the end of September 2022, available data at the CBN indicate that N2.73 Trillion out of the N3.23 trillion currency in circulation was outside the vaults of Commercial Banks across the country; and supposedly held by the public.”
Cash withdrawal limits
Emefiele’s naira redesign was castigated in some quarters. But it was nothing close to the barrage of criticism he received for introducing cash withdrawal limit, now revised.
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Recall that the apex bank chief stated that effective January 9, 2023, banks would limit cash withdrawals above certain thresholds across the country. For individuals, the bank announced a maximum of N100, 000 per week, while for companies, N500, 000. The announcement earned him summons from both chambers of the National Assembly, plus a terrorism charge by the Department of State Services (DSS). Emefiele has remained abroad on a sick leave but has from his base in the U.S., ordered a review of the policy with individual weekly withdrawal limit raised to N500,000, while for companies it became N5 million weekly.
National Domestic Card
The CBN also announced to Nigerians that it is embarking on a national card scheme effective January 2023.
The apex bank said it will seek to unify payments and strengthen the country’s card system with the introduction of the National Domestic Card which it says would ease transactions.
In partnership with the Nigeria Interbank Settlement System (NIBSS), the National Domestic Card would bring all payments under one system.
The implication, according to analysts is that ATMs and other card-payment systems might be phased out by the central bank in 2o23.
Inflation jumps to 17-year high
Nigeria witnessed unprecedented inflation in the outgoing year.
Inflationary pressures pummeled Nigerians as the cost of living skyrocketed and household incomes eroded drastically.
In response to the inflation, CBN increased benchmark interest rates amid the depreciation of the naira which also witnessed the highest fall in 20 years.
No matter the impact of economic decisions by the Nigerian government, 2022 remains one of the most eventful years in the country
