Economy

Buhari shuts Zanaib Ahmed, Finance Minister, up on naira redesigning policy

Emefiele-Buhari-and-Zainab-

– backs CBN Governor

The Eyewitness reporter

President Mohammed Buhari has come out to publicly endorse the Naira redesigning policy of the Central Bank of Nigeria (CBN), thus putting paid to the controversy generated by the decision.

In a radio programme on the Hausa service, President Buhari, on Sunday, said that the decision of the CBN to launch new designs and replace high-value Naira notes had his support and is convinced that the nation will gain a lot by doing so.

The presidential endorsement of the policy has therefore put paid to the criticism of the policy by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed.

Mrs Ahmed had openly distanced herself and her Ministry, as the management authority of fiscal policy in the country, from the CBN Naira redesigning policy, saying she was not consulted and warning of the consequences of the decision if implemented.

However, President Buhari expressed support for the policy, saying he was convinced by the reasons given to him by the CBN Governor, Mr Godwin Emefiele that the economy stands to benefit from a reduction in inflation, currency counterfeiting and the excess cash in circulation.

The Senior Special Assistant to the President, (Media & Publicity), Garba Shehu, quoted Buhari in a statement as saying he did not consider the period of three months for the change to the new notes as being short.

”People with illicit money buried under the soil will have a challenge with this but workers, businesses with legitimate incomes will face no difficulties at all.”

The president’s support for the policy has however vindicated the stance of the CBN Governor who had insisted that he needs not to consult the Finance minister, having sought and obtained the approval of the President on the matter.

Mr Emefiele had on Saturday insisted the CBN will carry on with the redesign of some denominations of the Naira notes, saying it followed due process in its decision.

The apex bank made this known via its verified Twitter account, saying that the exercise was 12 years overdue.

The CBN urged Nigerians to support the measure, stressing that it was in the country’s overall interest.

The CBN said the measure was in line with provisions of sections 2 and 19 of the CBN Act.

“The management of the CBN had duly sought and obtained the approval of President Muhammadu Buhari in writing to redesign, produce, release and circulate new series of N200, N500 and N1,000 banknotes.

“The CBN urges Nigerians to support the currency redesign project, which is in the overall interest of every citizen of the country.

“The hoarding of significant sums of banknotes outside the vaults of commercial banks should be discouraged by anyone who means well for the country,” it said.

According to the CBN, it had tarried for too long considering it had to wait 20 years to redesign.

“The standard practice globally was for central banks to redesign, produce and circulate new local legal tender every five to eight years,” Emefiele claimed.

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Related Topics:Buhari on Naira redesign policy featured

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Economy

CBN succumbs to pressure, extends use of old naira notes to February 10

The Eyewitness reporter

The Central Bank of Nigeria (CBN) has finally caved in to Public outcry over the February 1st deadline for the use of old naira notes when on Sunday, the apex bank announced February 10 as the new date.

Announcing the new deadline in a statement, Governor Central Bank Of Nigeria(CBN), Godwin Emefiele, said the decision to add extra 10 days was “to allow for the collection of more old notes”

Up till Saturday, CBN had insisted on the 31st January deadline for the validity of the old N200, N500 and N1,000 despite overwhelming complaints that the notes are either not available or in short supply in the banks or their Automated Teller Machines.

Last October, Emefiele announced the Naira redesign policy which entails the issuance of new notes to replace the existing N200, N500 and N1,000 series.

Economy

CBN reverses itself on cash withdrawal limits as Emefiele succumbs to pressure

Governor of Central Bank of Nigeria, Godwin Emefiele

—now pegs weekly withdrawal for individual to N500,000, Corporate N5million

The Eyewitness Reporter

The Central Bank of Nigeria(CBN) may have succumbed to pressure from the National Assembly and other rich Nigerians as it has reversed itself on its earlier cash withdrawal limits for individuals and corporate organisations.

In a circular number BSD/DIR/PUB/LAB/015/073 dated December 21st, 2022 and addressed to all Deposit Money Banks(DMBS) and other financial institutions, the apex bank disclosed that the new weekly cash withdrawal limits for both the individuals and corporate organisations have now been reviewed to N500,000 and N5million respectively.

The new weekly cash withdrawal limits now superseded the earlier one released on December 6th, 2022 which were put at N100,000 for individuals and N500,000 for corporate organisations.

In the new revised cash withdrawal limits, the CBN claimed the revision of the policy was in response to feedback from the stakeholders.

The new revised policy also slashed the processing fees for amounts above the approved threshold from an initial 5 percent for individuals to 3 percent and for corporate organisations from 10 percent to 5 percent.

The circular, which was signed by Haruna Mustafa, the Director of Banking supervision, the CBN said the new revised cash withdrawal policy takes effect from January, 9th,2022.

”Following our circular BSD/DIR/PUB/LAB/015/069 dated December 6, 2022, on the above subject and based on feedback received from stakeholders, the Central Bank Of Nigeria(CBN) hereby makes the following reviews;

–the maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000 and N5 million respectively.

–In compelling circumstances where cash withdrawal above the limits in (1) above is required for legitimate purposes, such requests shall be subject to a processing fee of 3 percent and 5 percent for individuals and corporate organisations respectively.

–Futrher to (2) above, the financial institution shall obtain the following information from the Customer, at the minimum,and upload same on the CBN portal created for the purpose

a. Valid means of identification of the payee(National ID, International passport, or driver’s license)

b.Bank Verification Number(BVN) of the payee.

c.Tax Identification Number(TIN) of both the payee and the payer.

d. Approval in writing by the MD/CEO of the financial institution authorising the withdrawal.

–Third-party cheques above N100,000 shall not be eligible for payment over the counter, while the extant limit of N10 million on clearing cheques still subsists.

—Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the banking supervision, Other financial institution supervision and Payment System Management Departments as applicable

—Compliance with extant AML/CFT regulations relating to KYC, ongoing customer due diligence, currency and suspicious transaction reporting, etc is mandatory in all circumstances.

—Customers should be encouraged to use alternative channels(internet banking, mobile banking apps, USSD, cards/POS, eNaira,gets) to conduct their banking transactions”, the circular reads.

The CBN however warned all the banks and OFIS that aiding and abetting the circumvention of this policy will attract severe sanctions.

It could be recalled that the policy, which was first announced on December 6th, 2022, generated mixed reactions, especially from the members of the National Assembly who invited the CBN Governor. Godwin Emefiele to come and explain the rationale behind the cash withdrawal limits.

Twice, the National Assembly invited Mr. Emefiele, but twice, he did not appear, citing national assignment engagement as the reason for his non-appearance.

The review may, however, be as a result of the intense pressure that the CBN governor has lately been subjected to as a result of this policy which analysts believed does not favour the elites, the politicians and the rich Nigerians, especially giving the forthcoming elections.

Economy

ICT media chiefs launch foundation to drive advocacy, development

Bimbo Tooki

Abiodun Bayo

Top ICT media practitioners and pioneers in Nigeria have launched a Foundation known as Cloud Network Foundation, (CNF), to drive advocacy for skills acquisition and capacity building among youths and push for policy that encourages local content in ICT development in Nigeria.

The Foundation, made of the first eleven in ICT journalism in Nigeria, is worried that, among others, policy direction and implementation in the country has primarily neglected local content development and the creation of the requisite skills and enablement for Nigeria’s teeming youth to excel in the ICT ecosystem.

Chairman of the Foundation, Mr. Abimbola Tooki, who remarked at the body’s inaugural meeting, said Nigeria has so much untapped potential that, when harnessed by the provision of the right policies and strategies, could replicate another Silicon Valley in California, the United States to Bangalore in India.

“We can move from a consuming nation to a producing one in a few years in the ICT ecosystem, and over 20 million of our youths can be lifted out of poverty every year if they have the right information, guidance, enabling environment and skills at their disposal if we take the right steps”, Tooki said.

He said if the government prioritised integrating technology (ICT) infrastructure into public service delivery to promote growth-oriented policies, it would be easier for all tiers and arms of government to collaborate to pull Nigerians out of poverty.

The Cloud Network Foundation promises to provide an influential voice for stakeholders in the media, business community and government on the benefits of ICT in economic growth and national development.

It will also promote multidisciplinary collaboration and interdisciplinary initiatives on ICT to foster the creation, usage and sharing of knowledge in the fields of ICT for national development.

Also speaking at the body’s inauguration, Vice Chairman of the Foundation, Mr. Don Pedro Aganbi further said industry stakeholders should look forward to the Foundation’s resolve to ensure a more active ICT industry in Nigeria.

Meanwhile, the CNF announced in the statement that as the election produced the Chairman and Vice Chairman, the group also elected the following officials: Olubayo Abiodun (Secretary); Ufuoma Emuophedaro, (Treasurer) and Ayo Makinde, as Publicity Secretary.

Aganbi said CNF would ensure that all operators wake up to their responsibilities of delivering quality services to Nigerians while fostering a friendly environment for all.

Other members of the fully registered non-political, non-religious and non-profit organisation include award-winning and pioneering ICT journalists such as Mr. Aaron Ukodie, Mkpe Abang, Bayero Agabi, Bunmi Idowu, Enyi Moses, Ken Nwogbo, Shina Badaru, Biyi Fasoyin, Tayo Adewusi, and Otunba Biodun Ajiboye, among others.

The CNF stated that it will also work with educational institutions at all levels in advancing the usage and adoption of ICT in learning and educational endeavours, and providing an effective voice for stakeholders in the media, business community and government on the benefits of ICT in economic growth and national development.

It will also promote research in diverse segments of ICT, develop professionals in ICT Journalism, and promote multidisciplinary collaboration and interdisciplinary initiatives on ICT to foster the creation, usage and sharing of knowledge in the fields of ICT for national development.

Cloud Network Foundation has an active online presence, with a dedicated website (cloudnetwork.ng), twitter, Facebook and Instagram.