Banks mute on claim that politicians pay N2m to change N20m old notes
There has been an unsubstantiated allegation by a section of the public that the reason behind the clear scarcity of new Naira notes was that politicians who had stockpiled old notes for the 2023 election, are draining new notes from commercial banks using a bait.
The bait, according investigations is that politicians part with extra N2m to exchange N20m Naira new notes.
Though no bank has been able to speak on this when contacted, analysts claim that the allegation may be true considering the new sanction handed down on banks by the Central Bank of Nigeria (CBN) if they load old notes on any of their Automated Teller Machines (ATMs).
Business Hilights recall that indications had earlier last month emerged that politicians who stashed billions of Naira outside the banking system to prosecute the 2023 general election have moved against the planned reintroduction and redesign of Nigeria’s currency by the apex bank.
These politicians, it was learnt, have mobilised the National Assembly to pass a resolution against the Naira redesign as several lawmakers may have stockpiled cash for the 2023 general election.
On October 26, 2022, CBN Governor, Mr. Godwin Emefiele, announced the plan to redesign the Naira to control the money supply. The redesigned notes include N200, N500 and N1,000.
According to the apex bank, new N200, N500, and N1,000 notes will go into circulation from December 15, while the current notes will cease to be legal tender by January 31, 2023.
Analysts say this monetary tool aimed at fighting corruption, checkmating money laundering, eliminating counterfeits, and ending the hoarding of the Naira by kidnappers and others, has thrown politicians who stashed billions of the Nigerian currency ahead of the 2023 general election into confusion.
It is estimated that about 84 per cent of the N12.73 trillion in circulation is outside the banking system, precisely in the hands of corrupt politicians, kidnappers, traders and criminal elements.
These elements, who do not bank their funds, are involved in money laundering and currency round-tripping using the black market as the alternative foreign exchange window.
Also, further findings revealed that that many of the politicians who have perfected plans of rigging next year’s election through vote-buying and had stock-pilled the Naira in their houses, offices and other hidden places, have perfected plans to ambush this apex bank’s initiative, which has received accolades from President Muhammadu Buhari and financial and economic experts.
In a press report, an Abuja-based lawyer and activist, Deji Adeyanju, noted that the anger against Emefiele was by corrupt politicians who had stockpiled their homes with naira notes ahead of the 2023 elections. He said: “Emefiele did Nigerian vote-buying politicians dirty. They had already stockpiled their homes with Naira notes.”
CBN gave reasons for the redesigning of the Naira, which are: to deal a fatal blow to the growing kidnapping and ransom industry, to address the issue of individuals who have made currency fraud their main source of income, to control the amount of money in circulation and to aid in lowering inflation.
