Naira Scarcity: Nigerian governors tackle CBN, accuse it of 'currency confiscation'

The Nigeria Governors’ Forum (NGF) has accused the Central Bank of Nigeria of conducting a ‘currency confiscation’ programme that is causing suffering for Nigerians.

The governors also called “for the halting of CBN’s plan to end the use of the old currency notes.”

The governors, across party lines, stated this in their communique at the end of their meeting held Saturday in Abuja.

“It is our considered view that what the CBN is at present pursuing is a currency confiscation programme, not the currency exchange policy envisaged under S20(3) of the CBN Act, 2007. Currency confiscation in the sense that the liquidity provided to the general public is grossly insufficient due to the restrictions placed on the amount that can be withdrawn regardless of the amount deposited,” the governors said in the communique signed by NGF chairman, Governor Aminu Tambuwal of Sokoto.

The governors’ stance comes amidst suffering by Nigerians who have found it difficult to access cash for their daily transactions.

The currency scarcity is a product of the decision by the central bank to redesign the notes of the three largest naira denominations: N200, N500 and N1,000.

However, since the announcement of the new notes last October, they have been scarce even as the central bank announced a 10 February deadline for the old notes.

Details later….