President Muhammadu Buhari has said that in addition to the economic gains of his administration’s Naira Swap Policy, it has also helped immensely to the minimization of the influence of money in politics ahead of the 2023 general election.
The President noted that the development was a positive departure from the past and represents a bold legacy step by this administration, towards laying a strong foundation for free and fair elections even as he urged Nigerians to go out and vote candidates of thier choice in the February 25 and March 11 elections.
President Buhari disclosed these in a nationwide broadcast to Nigerians over the the Naira Swap crises on Thursday morning.
“Fellow citizens, on the 25th of February, 2023 the nation would be electing a new President and National Assembly members. I am aware that this new monetary policy has also contributed immensely to the minimization of the influence of money in politics.
“This is a positive departure from the past and represents a bold legacy step by this administration, towards laying a strong foundation for free and fair elections.
“I urge every citizen therefore, to go out to vote for their candidates of choice without fear, because security shall be provided and your vote shall count.
“I however admonish you to eschew violence and avoid actions capable of disrupting the electoral processes. I wish us all a successful General Elections,” Buhari said.
Earlier in the address to Nigerians, the President reiterated the reasons for the currency swap policy and the gains recorded so far, revealing that about 80% of money held outside the banking system before now had been retrieved by the Central Bank of Nigeria (CBN).
“Fellow citizens, while I seek your understanding and patience during this transient phase of implementation, I feel obliged to avail you a few critical points underpinning the policy decision. These include:
“The need to restore the statutory ability of the CBN to keep a firm control over money in circulation. In 2015 when this administration commenced its first term, Currency-in-Circulation was only N1.4trillion.
“The proportion of currency outside banks grew from 78%in 2015 to 85% in 2022. As of October 2022, therefore, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking System while N2.7 trillion remained permanently outside the system; thereby distorting the financial policy and efficient management of inflation;
“The huge volume of Bank Notes outside the banking system has proven to be practically unavailable for economic activities and by implication, retard the attainment of potential economic growth;
“Economic growth projections make it imperative for government to aim at expanding financial inclusion in the country by reducing the number of the unbanked population; and
“Given the prevailing security situation across the country, which keeps improving, it also becomes compelling for government to deepen its continuing support for security agencies to successfully combat banditry and ransom-taking in Nigeria.
“Notwithstanding the initial setbacks experienced, the evaluation and feedback mechanism set up has revealed that gains have emerged from the policy initiative.
“I have been reliably informed that since the commencement of this program, about N2.1 trillion out of the banknotes previously held outside the banking system, had been successfully retrieved. This represents about 80% of such funds,” Buhari stated.
Speaking on the challenges and crises ocassioned by the currency swap policy, President Buhari blamed the development on persons he described as unscrupulous bank officials saddled with the responsibility of policy implementation.
He said he was ‘deeply pained’ by the crises and thereafter expressed his sincerely sympathies with all Nigerians over the unintended outcomes, adding that he has directed new measures to ease the sufferings of citizens including the extension of the legal status of only N200 banknote till April 10, 2023.
“I am not unaware of the obstacles placed on the path of innocent Nigerians by unscrupulous officials in the banking industry, entrusted with the process of implementation of the new monetary policy. I am deeply pained and sincerely sympathise with you all, over these unintended outcomes.
“To stem this tide, I have directed the CBN to deploy all legitimate resources and legal means to ensure that our citizens are adequately educated on the policy; enjoy easy access to cash withdrawal through availability of appropriate amount of currency; and ability to make deposits.
“I have similarly directed that the CBN should intensify collaboration with anti-corruption agencies, so as to ensure that any institution or person(s) found to have impeded or sabotaged the implementation should be made to bear the full weight of the law.
“During the extended phase of the deadline for currency swap, I listened to invaluable pieces of advice from well meaning citizens and institutions across the nation.
“I similarly consulted widely with representatives of the State Governors as well as the Council of State. Above all, as an administration that respects the rule of law, I have also noted that the subject matter is before the courts of our land and some pronouncements have been made.
“To further ease the supply pressures particularly to our citizens, I have given approval to the CBN that the old N200 bank notes be released back into circulation and that it should also be allowed to circulate as legal tender with the new N200, N500, and N1000 banknotes for 60 days from February 10, 2023 to April 10 2023 when the old N200 notes ceases to be legal tender,” the President declared.
He added that in line with Section 20(3) of the CBN Act 2007, all existing old N1,000 and N500 banknotes remain redeemable at the CBN and designated points only.
“Considering the health of our economy and the legacy we must bequeath to the next administration and future generations of Nigerians, I admonish every citizen to strive harder to make their deposits by taking advantage of the platforms and windows being provided by the CBN.
“Let me assure Nigerians that our administration will continue to assess the implementation with a view to ensuring that Nigerians are not unnecessarily burdened. In this regard, the CBN shall ensure that new notes become more available and accessible to our citizens through the banks.
“I wish to once more appeal for your understanding till we overcome this difficult transient phase within the shortest possible time,” Buhari added.
