A financial expert, Mrs Lolade Adesola, says redesigning the naira is in the interest of the common man. Still, as usual, those benefiting from the old system might fight and frustrate any good change the government intends.
Adesola said countries generally redesign every 10 years to stay ahead of counterfeiting, and Nigeria’s is long overdue.
“But remember that in 1984, the Buhari junta changed the Naira in two weeks to checkmate those hoarding the cash.
“Kidnappers and corrupt public officers collect illegal money but can’t bring it to the bank because of the maximum transaction reporting threshold, so instead they keep the cash at home.
“CBN says over 2/3 of cash issued in circulation is not in banks, so where? Obviously in the homes of kidnappers and corrupt officers,” she said.
The financial expert said the redesign will drive them out, as they either seek to bank the money, which is very unlikely, or change it to FX.
“However, those with large quantities will either be caught or forfeit most of their loot if they cannot convert the money.
It is this desperate rush to convert this money to dollars that is fuelling the current devaluation.
“The politicians are the biggest culprits; that’s why Buhari and the CBN Governor left the Finance Minister out of the decision-making.
The Naira will fall but firm up later when the excess old Naira dries up.
CBN will not print as many new notes. This will have some good side effects: one, no cash to bribe voters in February (so long as the January 31st date is not extended), and two, faster adoption of e-Naira and other digital payment methods.
Let’s keep praying for Nigeria,” Adesola said.
