The Centre for Civil Society Legislative Advocacy said the Central Bank of Nigeria’s plan to redesign the 200, 500 and 1,000 naira banknotes is not an economic priority for the country, given the current challenges facing the economy.
CISLAC executive director Auwal Musa announced this in a statement on Thursday, adding that CBN should focus on more pressing needs to put the economy on a path to recovery.
Musa added that Nigerians’ fearful reaction to the announcement proved that the decision was the wrong priority for the CBN.
He said the central bank should pay more attention to protecting foreign exchange reserves from external outflows and making foreign exchange available to ordinary citizens who really and legitimately need it, adding that a huge blow to foreign direct investment equals the central bank’s inability to do anything. It’s working effectively.
“First, the CBN’s decision to redesign and reissue the new 200, 500 and 1000 notes is not an economic priority and does little to address Nigeria’s poor monetary policy challenges and growing economic distress,” he said.
“Especially at a time when the country is grappling with a huge fiscal deficit, a free-falling naira, soaring inflation, multiple foreign exchange rates and rising borrowing costs. The reasons for this decision appear to be no different from those for the foreign exchange demand management strategy, after This led to an unsatisfactory conclusion, as the artificially low exchange rate failed to reflect the market as closely as possible to improve supply, but this time only threatened the economic consequences for Nigerians.
“The public perception of this decision as having no value proposition to the economy reiterates CBN’s tendency to decentralize the fulfillment of priority statutory obligations.
“Various comments and responses from Nigerians suggest that a large number of Nigerians are concerned that Apex Bank’s priorities are misaligned and that such a decision could result in significant logistical costs and avoidable misalignment of small businesses, most of whom are in Africa. formal sector.”
The CISLAC boss added that the CBN’s macroeconomic policies have brought “unspeakable difficulties” to the country’s economy, which has negatively affected Nigerians.
He added that top banks have a lot of work to do to win back the public’s trust and confidence.
“To date, the macroeconomic and monetary policies of the CBN have brought untold difficulties to the productive and service sectors of our economy, thereby negatively impacting the lives of our citizens. Apex Bank has introduced various exchange rate regimes and has been accused of Facilitates arbitrage between parallel and official FX markets, provides huge financial sponsorships and provides FX-based offers to allies.
“Nigeria is grappling with external pressure from the Central Bank of Nigeria’s inability to protect foreign exchange reserves from external outflows.
“Apex Bank needs to do a lot to restore public confidence by addressing the issues it cannot secure; by increasing the supervision of commercial banks used as conduits for corruption, stopping the flow of illicit funds and examining the use of the financial system to finance terrorism, It added, “Foreign investors rely on authoritative indices such as the Global Terrorism Index, and even economic indices including assessments for safety and stability, to inform their investment decisions;
“Increased cooperation with relevant anti-corruption agencies to examine suspicious charges by some commercial banks that are continually shortening poor Nigerians with reduced disposable income, further exacerbated by inflationary costs and rising unemployment;
“Go beyond the remit of the relevant coordinating authority and promote intervention in the sector, thereby reducing competition with other agencies. By ensuring synergy between fiscal and monetary authorities in intervening funds, and adopting transparent A mechanism for beneficiaries to access funds, CBN’s continuous and proactive support for MSMEs can be more effective;
“For those who legitimately need foreign exchange, such as students and businesses studying abroad, they can obtain foreign exchange. The artificially depressed exchange rate does not reflect the market situation as closely as possible, which affects the foreign exchange channels for paying foreign tuition fees, as well as the impact on the country’s economy. Deteriorated systems and imports of raw materials. Our foreign direct investment has been hit hard as foreign investors leave because they can’t get foreign currency;
“Cleaning up CBN recruitment processes, which are opaque because they appear to be reserved for children, wards and affiliates of PEPs.
“At this desperate time when the Nigerian economy is struggling, CBN’s efforts will better promote sound monetary policy consistent with global best practice, fight inflation and build a strong financial system in an increasingly uncertain global economy,” said Mu Sarah said.