Some economists have appealed to the Central Bank of Nigeria (CBN) to order commercial banks to improve the amount of money that people can access, to ease tension in the society.
The experts made the appeal on Wednesday in Lagos.
They were reacting to the Supreme Court’s adjournment of the suit filed by some state governments challenging the Feb. 10 deadline set by CBN to end the use of old naira notes.
Mr Johnson Chukwu, Managing Director of Cowry Asset Management, said that the situation at hand was no longer a case of judicial directive or order, but about what should be done to relieve the pressure on citizens.
“I have argued repeatedly that CBN can order the commercial banks to pay as much as N100, 000 over the counter, and if they do that and people are able to withdraw at least N100, 000 per week, I believe the pressure will come down and people will get some relieve,’’ he said.
According to him, the apex bank has made its position clear that the old currency notes are no longer legal tender after Feb.10.
He said also that the apex bank did not flout any order of the Supreme Court as it (CBN) was not joined in the suit.
In the same vein, Ndubisi Nwokoma, Professor of Financial Economics and Director, Centre for Economic Policy Analysisand Research, University of Lagos, Akoka, urged the apex bank to identify where there are bottlenecks and address them.
“I think CBN should make an effort to identify where the bottlenecks are and address them by enhancing printing and efficient distribution through the deposit money banks.
“The battle over the old notes and the Supreme Court case, in my view, is largely about the 2023 elections and the incidence of vote buying.
“The battle is less about the current sufferings of the ordinary person and more about the interests of politicians who have stashed away huge sums of the old notes for use in mobilising for the elections.
He urged Nigerians to support the apex bank’s policy saying that CBN’s position that old notes cease to be legal tender after Feb. 10, appears reasonable enough for public support, at least to protect the integrity of the 2023 elections.
Akpan Ekpo, a Professor of Economics and Public Policy at the University of Uyo, Akwa Ibom, who described the postponement as “unfortunate’’ wished the court had delivered judgment on the matter.
“But I think the Supreme Court is the highest court in the land, the Central Bank is not bigger than the Nigerian Constitution and by this all government agencies, organs and so on, are supposed to enforce Supreme Court’s order and everybody has to obey it.
“My concern is that until Feb 22, the old notes have to be accepted in line with the new ones, that’s my understanding. So, everybody should be patient and wait until Feb.22,’’ he said.
Sherifdeen Tella, a Professor of Economics at the Olabisi Onabanjo University , Ago-Iwoye, Ogun, believed that the Supreme Court’s failure to punish CBN for flouting its order was what was fueling the confusion in the economy.
“The postponement of hearing on the CBN policy may be in order, if the court feels it needs time.
“But failure to punish those flouting its orders, including the CBN, that the old naira remains acceptable for transactions is fuelling the confusion in the economy and promoting anarchy.
“Or, does anyone need to go to court separately to sue for violation of court order by CBN, banks and even a court in Lagos? Tella said.
Uche Uwaleke, Professor of Capital Market at the Nasarawa State University , Keffi, said, “ the postponement will only heighten the anxiety and uncertainty currently pervading the economic environment especially against the backdrop of the fact that the CBN has maintained Feb. 10, as the date the old notes cease to be legal tender.’’
