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Naira Crisis: Why currency redesign policy is failing – Emefiele

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Governor of Central Bank of Nigeria, CBN, Godwin Emefiele has admitted that supply constraint arising from the limited capacity to print enough new Naira notes is responsible for the severe cash crunch hurting Nigerians.

This is coming amid the disappointing naira swap policy.

Emefiele made the disclosure on Friday when he briefed the emergency meeting of the National Council of State, sources who attended the meeting said.

President Muhammadu Buhari convened the meeting as threats of social instability rise following the shortage of Naira.

Violent protests have been recorded in parts of the country, including in Ogun, Oyo and Akwa Ibom in the country’s south, and the media is awash with lamentations of suffering Nigerians, who are not able to access their funds for transactions, especially in the cash-dominated informal economy.

Many banks in various states have shut down their operations as citizens violently protest their inability to access their funds.

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Many governors have also echoed the lamentations of the citizens.

On Friday, Emefiele told the leaders that the Nigerian Security Printing and Minting Plc (The Mint), suffers capacity constraints resulting in the failure to print adequate new notes to replace the old N200, N500 and 1,000 notes.

The extended deadline to phase out the old notes is today, 10 February. However, a Supreme Court decision this week asked that the deadline be further extended. The Attorney-General of the Federation, Abubakar Malami, is challenging that interim ruling by the Supreme Court and the central bank has not spoken on how it intends to comply with the ruling, thus leaving Nigerians confused.

Without a definite pronouncement by the Federal Government or the CBN, Nigerians have started rejecting the old notes, on-the-ground reporting across the country shows.

It was gathered that The Mint’s capacity constraints rest on not having enough papers to print new Naira notes.

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“The Mint has run out of papers to print N500 and 1,000 notes,” a source said, explaining the supply constraints The Minit faces. “They have placed orders with a German firm and De La Rue of the UK (for papers) but they have been placed on a long waiting list so their orders cannot be met now,”

The source said The Mint had received CBN’s request to print 70 million copies of the new notes, totalling N126 billion to be pumped into circulation by today, the source added, regretting, however, that the request could not be met because “The Mint doesn’t have the capacity.”

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Claims of inciting Igbos against FG baseless, Obi replies Umahi

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The presidential candidate of the Labour Party in the 2023 election, Peter Obi, has responded to the allegation that he is inciting people of the south-east against the federal government.

 

The former governor of Anambra said the allegation is a “baseless distraction” designed to tarnish his character.

 

He averred that his “focus is on fostering constructive dialogue and inclusivity, rather than engaging in divisive politics”.

Obi said he would not reduce himself to the level of those who wallow in ethnic politics.

 

“Regarding allegations of incitement against the government, I firmly reject these unfounded accusations aimed at tarnishing my character,” Obi wrote on X.

 

“My focus is on fostering constructive dialogue and inclusivity, rather than engaging in divisive politics.

 

“Claims of incitement are baseless distractions. I have always advocated for unity and advancement, refusing to partake in reactionary divisive politics.

 

“Worse still, I have never and can never descend so low as to base my political aspirations on any sectional or ethnic interest.”

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THE INCITEMENT ALLEGATION

David Umahi, minister of works, on Wednesday accused Obi of inciting people of the south-east against the federal government over the Lagos-Calabar coastal road project.

Speaking during a stakeholders’ meeting in Lagos, Umahi said Obi implemented the demolition of structures for road infrastructure while he was governor of Anambra.

 

The minister condemned Obi for criticising the federal government over the project, adding that affected property owners are already being compensated.

 

Obi has repeatedly criticised the federal government for the construction, describing the project as a misplaced priority.

 

The former Anambra governor said the “insensitive” demolition of structures for the project was “heart-wrenching”.

 

Recently, the federal government commenced the construction of the 700-kilometre Lagos-Calabar coastal road, which is expected to run through the shoreline of beach resorts in Lagos, while traversing eight other states.

 

The project has elicited controversy over funding, and the businesses that would be affected during construction.

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RESPONSE ON DEMOLITIONS AS ANAMBRA GOVERNOR

Responding to Umahi on demolition of structures, Obi said while he was governor, he clearly stated that all structures obstructing existing roads and lacking approval would be removed.

 

The former Anambra governor challenged anyone to show evidence on whether the “demolished structures on existing roads or ongoing businesses were not encroaching on the road and built without government approval”.

 

He added that it amounts to false equivalence to compare his actions as governor with the current Lagos-Calabar coastal road project.

 

Obi said he “never proposed creating a new road that would disrupt existing structures”.

 

“My actions were strategic, aiming to prioritise the repair and maintenance of existing infrastructure over projects that risked disruption and destruction,” Obi added.

“This approach aimed to safeguard the livelihoods of Nigerians and ensure the efficient use of resources.”

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Coastal highway: Umahi slams Obi, says he’s inciting south-east people against FG

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David Umahi, minister of works, says Peter Obi, former governor of Anambra, is inciting people of the south-east against the Federal Government over the Lagos-Calabar coastal road project.

Umahi spoke in Lagos on Wednesday during a stakeholders’ meeting on the road project.

 

Recently, the federal government commenced the construction of the Lagos-Calabar coastal road, which is expected to run through the shoreline of beach resorts in Lagos, while traversing eight other states.

The project has generated controversy and concerns about funding and the businesses that would be affected during construction.

 

On Tuesday, Obi, presidential candidate of the Labour Party (LP) in the 2023 elections, criticised the federal government over the project, describing it as a misplaced priority.

 

The former Anambra governor said the “insensitive” demolition of structures for the project was “heart-wrenching”.

 

UMAHI REPLIES OBI

Responding to the comment, Umahi said Obi supported the demolition of structures for road infrastructure while he was the governor of Anambra.

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The minister condemned Obi for criticising the Federal Government over the project, adding that affected property owners are already being compensated.

“When you condemn people you bring judgment upon yourself and that is what he has done,” Umahi said.

 

“I think he is inciting some of the south-east people that are not well informed.

“He is inciting and getting them into trouble and he does not go to fight for them.

“Wisdom is a defence. It gives light to those that practice it. I want our people to have wisdom because I’m involved.”

Umahi added that the federal government did not destroy the facilities of Landmark Beach, noting that only shanties on the right of way were removed.

 

He said the owners of Landmark Beach were not unfairly treated in the construction of the project.

 

The minister accused Paul Onwuanibe, chief executive officer (CEO) of Landmark Africa Group, of politicising the issues arising from the project.

READ  DSS says Emefiele has been charged to court, vows to ensure professionalism

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Good morning! Here Are Some Major News Headlines In The Newspapers Today: Minimum wage: FG, Labour talks deadlocked, NLC defends N615,000 demand

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1. The ongoing negotiations for a new minimum wage have deadlocked following the inability of the Federal Government and the organised labour to reach a consensus on the issue. President Bola Tinubu gave this indication in his speech during this year’s International Workers’ Day celebration in Abuja, on Wednesday.

2. The Federal Government says it will stop granting licences to gas companies with no capacity to build pipelines for gas distribution. This, the government said, became necessary to discourage the transportation of compressed natural gas through the roads.

 

3. The House of Representatives Committee on Petroleum Resources (Downstream and Midstream) has called on security agencies to pick up hoarders of the Premium Motor Spirit, also known as petrol. The committee also assured Nigerians of the availability of petrol in stock, stressing that the logistical challenges which made the product scarce were being addressed.

 

4. The Federal Government has assured workers in the country that the implementation of the new national minimum wage would still take effect from May 1, 2024. Mrs Nkeiruka Onyejeocha, Minister of State for Labour and Employment, gave the assurance during the commemoration of the May Day celebration, on Wednesday in Abuja.

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5. Minister of Works, David Umahi, has announced that the federal government plans to pay N2.75 billion as compensation to property owners affected by the demolition required for the construction of the Lagos-Calabar Coastal Highway today, Wednesday, May 1. Umahi said that the highway is projected to stretch from channel 0 to channel 3.

 

6. Africa’s richest man, Aliko Dangote, has lamented that the devaluation of naira, Nigeria’s currency, was the biggest mess for his company in 2023. Dangote, the Chairman of the Dangote Industries Limited made this statement during the annual general meeting of Dangote Sugar Refinery Plc.

 

7. The National Secretary of the Independent Petroleum Marketers Association of Nigeria, IPMAN, James Tor, has cited the Israel-Iran crisis as a major cause of the current fuel scarcity in Nigeria. He noted that the current geopolitical tensions in the Middle East compounded existing challenges, leading to a bottleneck in the supply chain.

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8. Minister of Works, Engr Dave Umahi, on Wednesday, accused the 2023 presidential candidate of Labour Party, Peter Obi, of inciting some of the people of South-East against the federal government over the Lagos-Calabar coastal highway project. He made the statement in reaction to the criticism by Obi that the project embarked on by Bola Tinubu’s administration is a job-losing one.

 

9. Governor Dauda Lawal of Zamfara State has pledged to decisively deal with workers receiving multiple salaries in the state civil service. The governor made the disclosure on Wednesday while speaking at the 2024 Workers’ Day celebration held in Gusau.

 

10. Tactical team of Kwara State police command has arrested three suspected cultists over the killing of the leader of another cult group, while manhunt has been launched to arrest other fleeing suspects involved in the inter cult attacks. Spokesperson of the command, DSP Ejire Adetoun Adeyemi who disclosed this in a statement made available to journalists in Ilorin yesterday, identified the suspects in police net as Sulaiman Ismail Mamud Ibrahim and Mudashir Saheed.

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