LCCI says naira swap deadline extension useless, as people, businesses suffer
By Jeph Ajobaju, Chief Copy Editor
Extending the deadline for naira swap has no value unless additional new notes are printed, the Lagos State Chamber for Commerce and Industry (LCCI) has argued, which gels with the position of Kaduna Governor Nasir el-Rufai.
El-Rufai said the Central Bank of Nigeria (CBN) withdrew N2 trillion from circulation but printed only N300 billion new notes, which amounts to only 15 per cent, whereas a minimum N1 trillion should have been printed to head off shortage.
“Businesses are suffering the consequences of the CBN currency management policy lapses. Regarding the deadline extension for phasing out old notes, the Chamber does not see any value in this if the scarcity of the new naira notes persists,” LCCI Director General Chinyere Almona said in a statement.
“We regret that expectations have been dashed, business deals impeded, and loss of time and value experienced by many.
“The Central Bank needs to enlighten the public on grey areas about the scarcity of the new naira notes in addition to strengthening its policy implementation capacity. The minimum expectation in the face of a currency crisis in which we find ourselves.”
Negative impact beyond intentions
“The new naira redesign has triggered varied reactions and feedback that suggest that related issues like the phasing of old currency notes, withdrawal limit, and the scarcity of new notes may have started to impact businesses and social livelihood beyond intentions,” Almona stressed, per Daily Post.
“While banks have endeavoured to meet the Currency demands of their customers through Automatic Teller Machines, and electronic transfers, the scarcity of the naira has rendered their efforts ineffective.”
“While we support the drive toward a cashless economy, redesigning the naira and phasing out old currency notes could have been better planned and implemented with no hardship for businesses and individuals.”
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El-Rufai knocks CBN for poor naira policy implementation
El-Rufai said All Progressives Governors (APC) Governors have asked President Muhammadu Buhari to prevail on the CBN to allow old and new naira notes to co-exist to ease the hardship Nigerians are going through, per Nairametrics.
He insisted the new notes in circulation are insufficient and if the CBN truly wanted to implement the cashless policy, it should have printed at least half of the cash withdrawn, which should be N1 trillion.
He reiterated many Nigerians are suffering with traders of perishable goods losing their wares daily from low patronage.
El-Rufai cited the example of how tomato sellers from the North travel to Lagos only to waste their goods because consumers lack the cash to buy.
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