OPINION.
The Central Bank of Nigerian (CBN) early last month proposed the redesigning of the Nigerian Naira Note. This suggestion was presented by the CBN Governor, Mr. Godwin Emefiele and was accepted by the president of the federal republic of Nigeria, General Mohammadu Buhari. The CBN Governor in his proposal, suggested how the redesign of the higher notes: #1000, #500, and #200 would help curb inflation, produce enough cash in circulation, prevent currency counterfeiting, prevent hoarding of the currency for political campaign financing, terror financing, ransom payments to kidnappers among other illicit transaction already implicated with the existing currency notes, since monies would be brought down to the bank in bulk before deadline.
Several stakeholders in the public have had meetings, reacted and deliberated on the Naira redesign. Many considered it worthy, considering its positive impact on the country’s economy. While others consider it a way the ruling government would influence the upcoming general election, as some of the contesting candidates and parties could have hoarded the existing currency in order to share it to the electorate during election.
My Opinion
As said by the CBN governor, the Naira redesign imperatively is to fight the current inflation that has plagued the country.
A quick question, what is inflation? Inflation is the general rise in price of good and services, given that the community involved is not able to meet up due to frequent price change. In a layman’s term, inflation is when there is hike (increase) in prices of goods and services, thus; making it difficult for the lower class to buy and sell. Flash back to basic economics, we will observe that prices of commodities would only go up when such commodity is not available (scarce), even though the money to purchase is available; poor supply, but increase demand.
But with the Nigerian situation, commodities are scarce and we have heard reports that Naira notes are being printed to salvage its scarcity, which is a sequel of low production and scarce commodities. Instead of improving on production, which stands as the means by which money would flow into the economy on its own accord, monies are being printed. Well, maybe the CBN and the FG thought it wise that instead of improving on production, more money printed and released into circulation would level up the rate of scarcity, but the supposed healing pill turned out to further cause a cascade of catastrophe leaving and flooding the country with a pseudo-money (the money that was never available), because as money is being printed, some senior citizens are keeping and hoarding, which forfeit the effort for printing the money printing in the first place.
With this level of outright sabotage of the economy by money launders, the FG and CBN had to compel everyone hoarding money to bring it out. Just like call and response, the CBN has been reporting lately on how billions of naira in cash have been visiting the banks.
The benefits highlighted above for the currency redesign seem to be of utmost importance and interest of the general public. The question therefore is: Is Naira redesign the solution at a time like this? Considering the situation of the country at this time, where Insecurity is a major militating concern of the general public. The question would then be how could Naira redesign positively address insecurity and general inflation.
Even if the currency redesign was suggested to prevent “buying of votes” from the electorate as some said, how does that affect the decision of the people participating in election or whom they vote for. It is to be known that whether the people are paid for their votes or not, the people are still at liberty to whom they cast their vote for. They choose whom they want to lead by virtue of ruling democracy and rule of law.
Also, most businesses and organization had to increase the salaries and wages of their workers because of the inflation which has added to their commodities prices. Redesigning the Naira currency in this regard without addressing the exchange rates and other factors that rate our Naira value would seem to be futile
National insecurity resulting from kidnapping, banditry, and terrorism is of utmost concern to the general public. It is a known fact that insecurity is detrimental to the general well-being of the people with its resultant effects in the areas of illness, low quality of life, low life expectancy and even death. On the economy, insecurity has led to the destruction of business, properties and equipment, relocation and closing down of businesses.
Although it should be agreed that ransom payment for kidnappers, terror financing and other illegal transactions are largely made with cash to prevent suspicion by public banks. Would Naira redesign address public insecurity? Insecurity is largely caused by poverty, unemployment, and illiteracy. Good governance with the provision of safe and secured environment for human capital development and businesses is crucial in combating public insecurity, maybe coupled with the currency change?
With the proposed concerns that the Naira currency redesign was suggested for; that is, reduction of inflation of goods, prevention of hoarding of currency for political campaigns and elections, terror financing and ransom payment for kidnappers. It can be concluded that the ruling government should employ other measures to address the concerns. As Naira redesigning can only change the surface of the notes but not the value of the currency, political decisions of the people and other transactions it might be used for.
Comments
Post a Comment