Experts applaud the extension of the CBN Naira swap deadline

Financial experts have applauded the decision of the Central Bank of Nigeria to extend the deadline for exchanging the new naira notes with the old notes in circulation to February 10.

The top bank’s decision on Sunday followed requests from Nigerians, including stakeholders, the 36 state governors, the Nigerian Bar Association, the Arewa Consultative Forum and banking clients, for a review of the policy and an extension of the January 31 deadline.

Commenting on the development, President, Association of Capital Market Academics of Nigeria and the country’s first Professor of Capital Market, Uche Uwaleke, speaking by phone to our correspondent on Sunday, said that the CBN’s extension of the deadline to Feb. CBN as a responsive organization sensitive to the desires of Nigerians.
“The review of cash withdrawal limits confirms that the top bank is following up on the issues and means well with Nigerians.

“This extension of the deadline will reduce queues at the ATM, reduce panic and uncertainty among small business owners in remote areas and, more importantly, allow more time for the new naira notes to circulate while the old ones returned to the CBN as about N900 billion is still out of the banks as revealed by the CBN Governor, Godwin Emefiele,” he said.

Uwaleke also stressed that the new deadline was set before the February 25 presidential election to reduce vote buying and to discourage the current practice of rejecting the old banknotes, even though they were still legal tender.

He praised the CBN for the move, as well as the president, Major General Muhammadu Buhari (retd.), for giving approval for the extension.

In his own response, an investment banker and Chief Executive Officer, Taurus Capital Limited, Dr Nnaemeka Obiaeri, opined that the monetary conversion policy was commendable as it had helped reduce the rate at which kidnappers endlessly demanded massive amounts of money to be released. their victims.

Obiaeri claimed it had also frustrated politicians hoarding money to buy votes in the upcoming election, saying they had an option to deposit their old notes or lose everything on the policy.

“Data from the Nigeria Deposit Insurance Corporation, National Bureau of Statistics and CBN shows that more than 133 million multidimensional poor Nigerians and more than 178 million Nigerians earn no more than N60,000 a month and do not have enough to live in one day to eat. the level of the country’s economic inflation,” he said.

He therefore encouraged the Economic and Financial Crimes Commission, Department of State Services and Independent Corrupt Practices Commission, among others, to closely monitor all branch managers, regional managers, heads of operations, CEOs and key relationship managers of deposit money. banks in Nigeria by placing 24/7 surveillance around them to help stop any handkerchief action that could sabotage the administration’s efforts.

“The CBN should also engage KPMG Advisory Services, PWC and Deloitte to conduct a rapid, random sample of crash audits within the next seven days to see what commercial banks were doing with the old banknotes that had been deposited and the new ones the top bank had been paid to them. he added.

Emefiele said while speaking about the extension that the CBN had N1.7 trillion worth of old naira notes so far, with N500 billion still to go.

However, the CBN governor was silent on how much cash would remain outside the banking system with the redesign of the naira.