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Naira Redesign: What’s Behind APC Governors’ Defiant Move Against Buhari?

By
Samuel Nwite
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0

Members of the ruling All Progressive Congress (APC), led by the governors, have surprisingly intensified their attack on President Muhammadu Buhari over the recent naira redesign policy of the Central Bank of Nigeria (CBN), geared toward the elimination of moneybag politics among other things.

The CBN announced the policy late last year, setting a January 31 deadline for the implementation, which requires that the old N200, N500 and N1,000 notes be phased out and be replaced with the redesigned notes.

The governors, under the aegis of Progressive Governors Forum (PGF), were quick to approach Buhari, requesting that both the old and new notes be allowed to co-circulate. The deadline was later extended to February 10 as scarcity of the new notes mars the currency swap exercise, exposing Nigerians to forced cashlessness that scuttles economic and social activities.

Led by three states; Kogi, Kaduna and Zamfara, the PGF dragged the federal government to the Supreme Court, praying the apex court to compel the CBN to rescind the monetary policy and allow both the old and new naira notes to co-exist. In February 8, the Supreme Court granted an ex parte order, restraining the federal government from enforcing the February 10 deadline, until the matter, which has now been adjourned to February 22, is determined by the court.

However, the CBN did not obey the order. The apex bank declared days later that the old naira notes will cease to be legal tender after the expiration of its February 10 deadline, opening a few-days window for people to deposit the old notes in their possession at central bank branches across the country.

The federal government, in its response to the three states’ lawsuit, had questioned the jurisdiction of the Supreme Court to entertain the case. The Attorney General of the Federation Abubakar Malami had argued that the three states failed to make the CBN a party to the case, and as an independent institution, that makes the Supreme Court’s order non-binding on the apex bank.

When on Tuesday the CBN declared that the old naira notes are no longer legal tenders following the expiration of the deadline, the APC governors erupted in protest. Nearly all the APC governors, in defiance of Buhari who they have supported through thick and thin in the past seven years, have kicked against the CBN policy – declaring the old notes legal tender in their various states.

It was the APC’s presidential candidate, Bola Ahmed Tinubu, who first alleged that the naira redesign policy was meant to scuttle the party’s chances in the coming elections. The allegation was reechoed by El-Rufai days later. The Kaduna State governor said that some “elements” in the presidency, who are upset that their candidate didn’t win the APC presidential ticket, orchestrated the policy in addition to fuel scarcity to undermine Tinubu’s chances at the February 25 presidential poll.

Since then, the sentiment has been spreading from members and supporters of the APC. This is as opposition political parties, including the Peoples Democratic Party (PDP) and the Labour Party (LP), openly throw their support behind the policy.

On Wednesday, the speaker of the House of Representatives, Femi Gbajabiamila said: “Nobody can convince me that it is not a plot to stop Asiwaju (Tinubu) from becoming the president of this country,”

On Tuesday, Ogun State governor, Dapo Abiodun threatened to “shut down any Commercial bank operating in Ogun state that refuses to accept old naira notes.”

Other APC governors have done something similar. Kano, Lagos, Jigawa, Bauchi Yobe etc, have joined the throng of APC states pushing to thwart the implementation of the naira redesign policy, with some of the states’ governors issuing arrest orders for those who reject the old notes.

Kano State governor Abdullahi Ganduje said on Thursday that President Muhammadu Buhari did not achieve anything throughout his eight years in office, and is now determined to ruin the APC before leaving office in May 2023.

“In the first term, nothing of great importance can point out as his achievement, same as in his second term. So, why is he bringing out all these policies now? Why not seven years ago? He just wants to collapse the party that produced him,” he said.

On Thursday, Gbajabiamila issued a statement criticizing the resolution of both the federal government and the central bank to see to the full implementation of the policy.

“It is disheartening that the CBN has resolutely refused to admit error and change course in the face of mounting evidence that the implementation of this policy has been a devastating failure,” the speaker said. “It is deeply troubling that neither the intervention of the National Council of State nor an order of the Supreme Court is sufficient to cause the governor of the Central Bank of Nigeria to review the decisions that have brought us to this entirely avoidable moment.”

Reinforcing the belief that the policy had been engineered to cost the APC presidential election, El-Rufai had in a statement on Thursday, pointed at unnamed persons as the architects of the design.

“My dear of people of Kaduna State, with the foregoing revelations, it is clear that our peaceful coexistence as a state, and a nation, is being placed under deliberate danger using the intentional combination of fuel and cash supply disruptions,” he said.

“These evil people using the instrumentality of the Federal Government and the President as convenient covers are willing to truncate our democracy because they have personally lost out. They are massively deploying resources and tools to defeat the political party that gave us the platform to serve the country just because they could not impose the candidates of their choice. Let us not help them.”

Thus, in a daring charge on Thursday, El-Rufai asked Kaduna residents to ignore whatever directive the CBN has issued on the old naira notes and continue to use them as legal tender in the state.

“Hold on to them. Continue to use them as legal tender as ordered by the Supreme Court of Nigeria. No deadline can render them worthless, ever. The law is on your side,” he charged.

The number of states fighting against the implementation of the policy in court has risen to more than 10, following the joinder of seven other sates made by the Supreme Court on Wednesday. The federal government’s decision to allow the old N200 note to circulate alongside the new notes, which was announced by Buhari on Thursday, was not enough to quell their fight.

“The address by the President earlier this [Thursday] morning limiting the legal tender status of old notes to only N200 amounts to total disregard and disobedience of the ruling of February 8th which was extended further [Wednesday]  by the Supreme Court,” El-Rufai said in his statement on Thursday.

The states said their decision to sue the federal government was inspired by the suffering the chaotic implementation of the policy has caused the masses. But it is a claim that a large section of Nigerians have disagreed with for obvious reasons.

The federal government is notorious of flouting court orders, a disappointing notoriety that had been flagrantly backed by the APC. Nigerians were quick to outline occasions where the federal government had disobeyed court orders, citing some of its policies targeting the wellbeing of the people that both the APC governors and the party’s bigwigs did not challenge.

Nigerians are citing Endsars protest, border closure, Twitter ban and the federal government’s refusal to obey court orders to release the leader of the Indigenous People of Biafra (IPoB) Nnamdi Kanu and the leader of the Islamic Movement of Nigeria (IMN) El-Zakzaky as popular cases of the federal government’s culture of disregard to the rule of law.

They said the APC’s desperate moves to stop the implementation of the naira redesign policy lend credence to assertions that the ruling party is planning to influence the result of the elections with money. It is believed that the governors have stored huge amounts of cash outside the banks ahead of the election.

A chieftain of the New Nigeria Peoples Party (NNPP) has alleged that a certain APC governor in the Northwest has as much as N22 billion stockpiled at home for the election. The huge cash, which will be rendered useless following the implementation of the currency redesign policy – and the consequential outcome – defeat at the polls, is believed to be the reason the APC bigwigs are kicking.

Mobile Transaction in Nigeria Surges, Hits All-Time High Record in January 2023

By
Ojukwu Emmanuel
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0

Mobile money transactions in Nigeria hit an all-time high on January, according to data from the Nigeria Inter-Bank Settlement.

A total of 108.135 million transfers were made in January, representing a 237% increase when compared to the 32 million recorded during the same period in the previous year. Similarly, the value of mobile transactions rose by 124.8% to N2.4 trillion from N1.1 trillion in the period under review.

The figure is compared to 32.7 million recorded in the same month last year. The value of transactions also increased by 118.2% from N1.1 trillion in January 2022 to N2.4 trillion in January 2023.

The NIBSS data also revealed that Point of Sales transactions in Nigeria jumped to N807.16 billion in January 2023, a 40.69% year-on-year increase compared to the N573.72 billion reported in January 2022. By volume, PoS transactions in January 2023 amounted to 96.4 million, a 6.9% increase from what was recorded in 2022 at 90.1 million.

Also, Africa’s largest economy rose by 55 percent on a year-on-year basis to 541.64 million, in contrast to 348.4 million transactions registered in January 2022.

The increase in mobile transactions is attributed to the Central Bank of Nigeria (CBN) deadline for the collection of old naira notes, along with the redesign of higher denominations of the currency (200, 500, 1,000).

The CBN had earlier introduced a new policy on cash-based transactions which stipulates a cash handling charge on daily cash withdrawals that exceed N500,000 for individuals and N3,000,000 for corporate bodies.

The new policy on cash-based transactions in banks according to the CBN is aimed at reducing physical cash circulating the economy and encouraging more electronic-based transactions.

According to the CBN, the new cash policy was introduced for three (3) major reasons which include;

1.) To drive the development and modernization of its payment system in line with Nigeria’s vision 2020 goal of being among the top 20 economies by the year 2020.

2.) To reduce the cost of banking services (including the cost of credit) and drive financial inclusion by providing more efficient transaction options and greater reach.

3.) To improve the effectiveness of monetary policy in managing inflation and driving economic growth.

Meanwhile, following the CBN’s New cash policy that has spurred a lot of Nigerians to resort to mobile transactions, the citizens have been faced with incessant network issues which have amounted to so many failed transactions.

A lot of citizens did not hesitate to call out various banks in the country for lacking the capacity to handle mobile transactions since the enforcement of redesigned naira policy by the CBN.

Unconfirmed reports reveal that after a Banker’s committee meeting, CEOs of various Banks in Nigeria stated that the frustrating online transactions and network failures in their member banks were not caused by internal but external glitches.

Despite claims by the Nigerian banks that they have invested over N100 billion in setting up and maintaining cutting-edge electronic channels over the past few years as part of an ongoing commitment to seamless customer experience and real-time digital financial transactions, telecom operators in Nigeria still feel these banks do not have the capacity for full-blown digital banking.

I BELONG TO EVERYONE AND NOBODY: An Ideology with a Double Sword Meaning That Interpellated Nigerians for Years

By
Mutiu Iyanda
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0

Governing a country or leading an organisation requires having some socioeconomic and political ideological orientations. Social ideology helps in understanding people’s social dynamics, while economic ideology assists a leader in pointing out their economic interests and providing appropriate leadership mechanisms for them to thrive. However, political ideology usually informs the development and application of social and economic ideologies. Like the previous presidents, during his first inauguration, after noting that he had sworn on the Holy Book, President Muhammadu Buhari stated, “I belong to everybody and I belong to nobody. A few people have privately voiced fears that on coming back to office I shall go after them. These fears are groundless. There will be no paying off old scores. The past is prologue.”

Though checks reveal that this statement was a quote from the late Charles de Gaulle of France, it could be regarded as a political ideology of President Buhari despite the people’s view that he is not a career politician and/or a democrat. A series of analyses using critical discourse analysis, leveraging existing data regarding how late Charles de Gaulle exhibited the practicality of the ideology, indicates that it has negative and positive meanings, depending on the context in which it is used. It could be interpreted as a statement of inclusivity and unity, suggesting that the politician views themselves as representing all people, regardless of their differences. It could also be interpreted as a sign of detachment and isolation, indicating a lack of commitment to any particular group or ideology.

When President Buhari made the statement in 2015, different interpretations trailed it for days. To some people, President Buhari is open to hearing and considering the opinions of all people, regardless of their differences. He is also willing to work with a wide range of individuals and groups in order to find a solution to a particular problem. In this way, the statement is considered a sign of strength and solidarity and a statement of his commitment to the collective good.

Some people also had the notion that this statement is a sign of detachment and indifference, indicating that President Buhari does not feel any particular attachment or loyalty to any particular group or ideology and is not committed to any particular cause. Therefore, he is a human being and a Nigerian. And he is a part of everybody and everybody is a part of him. On different occasions, while making decisions on issues of national importance, President Buhari interpellated Nigerians with the statement. From policies that addressed social issues and needs to those that aimed at redressing the wrong political institutions, Nigerians struggled and are still struggling to understand the meaning of the statement.

Senator Bola Ahmed Tinubu is one of the seasoned politicians who interpreted the statement a few months ago while commenting on the outcome of the All Progressives Congress’ presidential primary election. According to him, “you (Buhari) belonged to everybody in the party and you belonged to none of the individual candidates of the party.” Before Senator Tinubu’s interpretation, President Buhari had earlier said “My problem is Nigeria and I have been involved in almost all the instability Nigeria experienced – the civil war, the coups and counter- coups. “That was why I said during my swearing- in that ‘I belong to everybody and I belong to nobody’.”

There is no doubt Nigerians have felt and are still feeling the use of the statement as a political ideology for managing socioeconomic issues and needs. Like the times of the Twitter ban, COVID-19 pandemic and ENDSARS protests, our analysis of digital data indicates that Nigerians are developing a significant interest in the number of days President Buhari has to rule the country. With the recent outcomes of his administration, which could be associated with the statement, our analyst notes that President Buhari really created an alternative identity for himself at the beginning of his administration and forced people to constantly create different discourses while creating their own identities.

A Nice Medal for Tekedia Capital Portfolio Startup, KLADOT

By
Ndubuisi Ekekwe
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0

Tekedia Capital awards a special medal to our portfolio company, Kladot, for signing one of the largest deals in the global fintech arena. More companies, SMEs, citizens, etc are using Kladot to run their global operations, making it possible for them to have foreign bank accounts (like US dollar-based bank accounts) irrespective of their jurisdictions.

If you are a fintech company anywhere which wants to offer bank accounts and other auxiliary services which you expect from typical US banks, Kladot will serve you; contact my team at capital.tekedia.com and they will help you connect with the Kladot team for APIs.

Tekedia Capital Syndicate offers ways for citizens, groups, investment clubs, companies, organizations, etc to own a piece of early-stage, high-growth technology startups operating across Africa. To learn more, go here.

New Naira Notes: Understanding El-Rufai’s Articulations and Distinctions While Enacting STAPOLITICS versus NAPOLITICS

By
Mutiu Iyanda
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0

If anyone wants to understand how African politics is being played during the election cycle from multi-dimensional perspectives with possible severe consequences for the people at the bottom of the pyramid, Nigeria would be an appropriate country to consider because of the difficulty in understanding and appreciating her political tricks before and during elections. It is a country with politicians without clear ideologies who always create new political terms during competitive political games. The ongoing power play among political actors and commercial banks with citizens over the scarcity of the new naira notes has added stapolitics and napolitics into the country’s political discourse.

According to our analyst, stapolitics is a process of making decisions that address people’s socioeconomic challenges in times of financial insecurity due to the shortage of new currency notes using state apparatuses. Napolitics, on the other hand, signifies the national government’s continuous intent to maintain the initial guidelines for implementing a new currency redesign with a little tweak of how the old currency notes should circulate along with the old ones without absolute consideration of the pain people are experiencing.

As captured in the previous piece, our analyst uses Kaduna State’s governor’s speech to conceptualise these terms with the specific adoption of articulation, disarticulation and distinction techniques. Six-hundred and ninety-seven words from the governor’s speech that resonate with the need to make critical decisions at the state level over the issues associated with the new currency swap are analysed. Analysis shows that while governor Nasiru El-Rufai articulates the right ways of implementing the policy, citing how other countries are implementing the same policy, he disarticulates the federal government’s and the Central Bank of Nigeria’s approaches, suggesting that both are not following global practices. Therefore, his government needs to take critical decisions on how people should access and spend their money. His references to some elements in the presidency and behind the forceful implementation of the policy are constructed as enemies of the people. Therefore, they should not be allowed to create chaos and destabilise existing peace.

Exhibit 1: Decision Tree

 

  1. On behalf of the government of Kaduna State, I wish to express my deepest regret at the needless suffering you are enduring as a result of the prolonged fuel shortage and the difficulties occasioned by the so-called “currency redesign” policy of the Central Bank of Nigeria. We understand your pain. I assure you that as your State Governor, I have been working with my other colleagues to do everything in our power to end these pains.

With this statement, Governor El-Rufai believes that people are being forced to experience unnecessary suffering by making the two important essentials unavailable to them. He uses “the so-called currency design” as a technique for downplaying the importance of the policy, which the president and the governor of the apex bank have emphasised since 2022. In this context, he disarticulates his opponents in order to provide his distinction in terms of aligning with the people in his state with the intention of making them realise that he is on the side of the masses.

  1. It is important for the people of Kaduna State, and indeed Nigeria, to know that contrary to the public pronouncements and apparent good intentions, this policy was conceived and sold to the President by officials who completely lost out in the Gubernatorial and Presidential Primaries of the APC in June 2022.

Here, he doesn’t believe that president owns the policy idea. He attributes the policy to public officials who lost the primary elections of the ruling party with the agenda of disciplining and punishing the winners of the primaries.

  1. I am referring here to the comments by the candidate of one of the opposition parties who expressed opposition to the recommendation first of the APC state governors, and subsequently of all the governors under the auspices of the Nigeria Governors Forum that the implementation timeline be extended, to enable the old and new notes to be legal tender side by side until the cash shortage ends.
  2. My dear people of Kaduna State. Let me explain how the architects of this policy intentionally designed it to fail. The total currency in circulation in Nigeria was estimated at N3.2 trillion at the end of 2022. According to the Central Bank of Nigeria, N2.1 trillion has been withdrawn as at early February. The CBN claimed that N700bn is the amount of cash needed for their functioning vision of a “cash-less” Nigerian economy. The Chief Economic Adviser to the President, Dr. Doyin Salami disagrees with this estimate, and believes at least N2 trillion of currency needs to be in circulation for our economic sustainability. Other experts variously estimate this to be between N1.2 trillion and above, so the CBN number of N700bn is not realistic.
  3. It is unfortunate that in implementing this policy, Nigeria is departing from global best practise, without any compelling justification. The Kaduna State Government did all these, not in opposition to any person or authority, but because we stand with our people and their interests.
  4. When it was clear that our recommendations will not be seriously considered, the Kaduna State Government decided, along with the governments of Kogi and Zamfara States to declare a dispute with the Federal Government. In line with the provisions of the Constitution, we approached the Supreme Court of Nigeria to invoke its original jurisdiction to hear us and the cries of our people.
  5. There is no emergency situation that justifies the rushed and seemingly deliberate incompetent execution of this policy. We suggested that compliance with the ruling would include adopting a whole-of-government approach, that involves the agencies of the federal and state governments in modifying the design, execution the implementation of the currency redesign policy.

While the federal government and the apex bank believe there is an emergency situation, citing the reduction of monetary inducement during elections, Governor El-Rufai plays the role of an antagonist here. His view suggests that the artificial emergency situation created by the federal government and the apex bank is contributing to the poor implementation of the policy.

  1. But back home, what do we do in Kaduna State? My dear of people of Kaduna State, with the foregoing revelations, it is clear that our peaceful coexistence as a state, and a nation, is being placed under deliberate danger using the intentional combination of fuel and cash supply disruptions. These evil people using the instrumentality of the Federal Government and the President as convenient covers are willing to truncate our democracy because they have personally lost out. They are massively deploying resources and tools to defeat the political party that gave us the platform to serve the country just because they could not impose the candidates of their choice. Let us not help them.

He reaffirms his antagonistic role further by articulating the elements as evil people who want to create problems in order to destabilise existing peace and particularly destroy the platform that helped him and the elements serve the country. Seeing them as evil people suggests that the ruling party has a number of disgruntled internal elements capable of denying the party victory during the 2023 presidential election.

  1. For the avoidance of doubt, all the old and new notes shall remain in use as legal tender in Kaduna State until the Supreme Court of Nigeria decides otherwise. I therefore appeal to all residents of Kaduna State to continue to use the old and new notes side by side without any fear. The Kaduna State Government and its agencies shall seal any facility that refuses to accept the old notes as legal tender and prosecute the owners. If need be, we shall take further consequential actions according to the law.
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