It is no longer news that Nigeria, through the Central Bank of Nigeria, has been faced with the problem of executing a currency redesign policy introduced three months ago. The initial criticism seems to have received justification as the aftermath of the expiration has left a sour taste in the mouths of Nigerians. While critics desperately attempt to amplify the shortcomings experienced during the execution, blaming the CBN for the collapse and scarcity of cash in circulation, those supporting the policy have consistently supported the introduction and implementation amidst appeals for calm to allow the CBN to resolve the issues as they arise.
Some people have seen scarcity incidence as a natural opportunity open for wealth redistribution. It has elevated previously obscure trade and brought them to the limelight. In 2013, the CBN implemented the Regulatory Framework for Mobile Money to bring banking services close to the people and deepen financial inclusion. As of 2014, 21 Mobile Money Operators (MMOs) were licensed to conduct business in Nigeria. There are three categories of agents – Super, Sole and Sub agents. While Super agents are agent networks that shall establish a collection of outlets or franchises within its vast network of outlets that shall be under its supervision and control, Sole agents are agents who do not delegate powers to other agents but shall assume the agent banking relationship/responsibility by himself. The Sub agents are networks of agents that shall be under the direct control of a super-agent as may be provided in the agent banking contract.
A total of 1.4 million agent banking locations exist across the country as of 2022, against 86,000 in 2018, which has helped increase our financial inclusion rate to 65 percent though the target of CBN is 95 percent by the year 2024. This agency business is what we know as a POS business. An agent is an entity a financial institution engages in providing specific financial services on its behalf using the agent’s premises. Though not as previously celebrated, the current naira shortage has put the individuals in this sector in a strategic position, with most of them rendering their services at a fee as high as 25 percent flat, depending on location in Nigeria. By the guideline establishing Agency banking, agents are prohibited from charging the customer any fees for their services.
The current shortage in cash has revealed the character and disposition of a particular set of people in the country. It has exposed how bereft of integrity and inhumane most people can become given a specific condition. Someone says that integrity does something right even when no one monitors it. The people guilty of this are; 1) a handful of the wealthy elite who took advantage of some greedy bank officials to gain access to bundles of scarce currency to spray at social gatherings; 2) some dubious bank officials who, despite the CBN guideline on the implementation of the policy, allowed the penchant for quick money to override their professional obligation by giving access to currency hawkers and others at a fee.
Some people have latched on to the current situation to gain what many have described as cheap popularity as they continue to show desperate opposition to the policy implementation strategy, using various tools to push their story under the guise of protecting the ordinary person. Several meetings were held at high and low levels. The governors met with President Muhammadu Buhari and implored him to call the CBN governor to order; the NASS met with the CBN governor, advising him to review part of the policy, especially as it has to do with the deadline for accepting the old notes; three state governments/governors went to the Supreme Court to attempt to stop the CBN through the federal government from proceeding with the policy as planned; A governor of a state was seen meeting with some citizens, advising them to continue to accept the old notes irrespective of the CBN deadline and assured them that his principal would reverse the policy in a few days, when his principal would have won the election slated for February 25th 2023. But many have continued to query these players and request that they exercise the same effort in addressing similar challenges facing the ordinary person.
Another revelation from the current incident is what many have described as the gullibility or naivety of the Nigerian populace as they continue to consume, process and circulate stories thrown at them on social media without verifying them. Even those who occupy high-level professional positions were spreading what many described as fake news. We saw videos of previous unrelated events now ascribed to protest or match in favour of the policy. We witnessed photoshopped images depicting incidents capable of inciting violence and heating the polity. The reaction of Nigerians to these images has shown that most of the populace is fragile and easily manipulated.
While all these continued, one thing was common! Everyone agreed that the policy was good but had a faulty implementation strategy and wrong timing. Many have queried the proponents of bad timing. The last time Nigeria redesigned its currency was in 1985, when the incumbent President was a military Head of State. Many say there is no better time than now as president Muhammadu Buhari remains the only individual with the courage and political Will to see its implementation.
Another common area of understanding is the ability of the policy to not only foil vote buying but also reduce the amount of cash in circulation. As a result, many believe the policy may have an initial hiccup, but the long-term benefit far outweighs the immediate pains. But critics have quickly and viciously accused the CBN of using an excellent policy to pursue personal goals and a broader imaginative goal of derailing the election, a claim that pro-naira redesign has described as a strategy adopted by politicians to give a dog a bad name.
In conclusion, many have advised that sentiments and emotions should be laid aside to resolve the cash shortage issue. However, using the antecedents of the CBN governor, Godwin Emefiele, to judge this policy will amount to throwing away the baby with the bathwater as this remains the most impactful policy of President Muhammadu Buhari administration, ably delivered by the duo of the CBN governor and the president.
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