Ecstatic dancing, joyful hugs, eager handshakes and hopeful grins were what expectedly greeted the dawn of 2023 in Nigeria. The shouts of “Happy New Year” and choruses of hallelujah ensued in places of worship. Of course, many non-religious folks welcomed the New Year with parties and clubbing. But most people are looking to have a better deal in life this year.
In Nigeria, 2023 is unique for several strategic reasons, one of which is that it is the year that millions of her citizens will go to the polls to elect leaders at federal, state, senatorial and federal constituency levels. It is also the year that critical decisions and policies of the government and its agencies would determine the shape of the country, economically, politically and socially.
In Nigeria, 2023 is unique for several strategic reasons, one of which is that it is the year that millions of her citizens will go to the polls to elect leaders at federal, state, senatorial and federal constituency levels. It is also the year that critical decisions and policies of the government and its agencies would determine the shape of the country, economically, politically and socially.
Nigeria is in a make-or-mar mode this year. What she does, and how she does what she does, is a determinant of her destiny. Will the country get it right? Every right-thinking Nigerian and friend of Nigeria would certainly hope this country which many see as a giant-turned-Lilliputian, walks gallantly on her feet. No one is in love with a “toddling-adult” condition.
CBN’s Policy On Naira Notes: Curbing Inflation And Financial Corruption
By 31st January, the N200, N500, and N100,000 notes would cease to be legal tender, courtesy of a policy by Nigeria’s apex financial institution, the Central Bank of Nigeria. The man who runs the CBN, Godwin Emefiele would not hesitate to harp on the fact that the redesign of those currency denominations, is one strategic decision that would impact on the economy with its potential to not only reduce inflation but to tackle the menace of money laundering or illicit movement of untraceable cash within the country.
On the issue of the worrisome unaccountable funds, Emefiele had this to say: “To be more specific, as at the end of September 2022, available data at the CBN indicate that N2.73 trillion out of the N3.23 trillion currency in circulation, was outside the vaults of commercial banks across the country; and supposedly held by the public
“Evidently, currency in circulation has more than doubled since 2015; rising from N1.46 trillion in December 2015 to N3.23 trillion in September 2022. This is a worrisome trend that cannot be allowed to continue.”
Emefiele maintained that the redesigned notes would take care of the worsening shortage of clean and fit banknotes with an attendant “negative perception of the CBN and increased risk to financial stability. He said that the development would check increased counterfeiting of the naira, increase financial inclusion and help to tackle corruption.
The Apex Bank’s Imposition Of withdrawal Limits: A Further Leap Into Cashless Economy
Not long after the CBN announced its policy on naira notes, it went ahead to unfold its feathers-rustling plan to place a N20,000 daily withdrawal limit on individual accounts and N50,000 limit on over the counter third party cheques.
In announcing the new development on the withdrawal limit policy and related issues, the CBN in a circular dated December 6, 2022 and signed by the CBN Director, Banking Supervision, Haruna Mustafa, revealed that effective January 9, 2023, only N200 notes and below will be loaded by banks into their Automated Teller Machines (ATMs). The CBN said withdrawal limits must not exceed N100,000 and N500,000 per week.
The circular from CBN maintained that withdrawals above these limits would attract processing fees of five per cent for individuals and 10 per cent for corporate organisations.
The circular made it clear that the maximum cash withdrawal per week via ATM shall be N100, 000 subject to a maximum of N20,000 cash withdrawal per day as only denominations of N200 and below shall be loaded into the ATMs.
It said: “In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organizations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.”
However, the apex bank after some strident cries of opposition, has gone ahead to make adjustments to the policy. The CBN particularly revised upward weekly cash withdrawals for individuals and corporate bodies to N500,000 and N5 million respectively.
In a new circular issued to all deposit money banks, other financial institutions, banking agents as well as mobile money operators, and signed by its Director of Banking Supervision, Haruna Mustafa, the apex bank said, “Following our circular BSD/DIR/PUB/LAB/015/069 dated December 6, 2022, on the above subject and based on feedback received from stakeholders, the Central Bank of Nigeria (CBN) hereby makes the following reviews:
“The maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000 and N5 million respectively. In compelling circumstances where cash withdrawal above the limits is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organizations, respectively.”
This development will no doubt shape the way financial transactions are done in 2023 and beyond.
General Elections: Nigeria’s Most Important Shape Defining Events
The most important events taking place in Nigeria this year are the presidential/National Assembly elections holding on 25th February and the governorship/House of Assembly elections scheduled for the 11th day of March.
For the presidential election, there are 16 candidates jostling to replace the incumbent President Muhammadu Buhari whose second term in office expires on May 29. Among the 16 contenders, three are held to be the front runners. They are the Asiwaju Bola Ahmed Tinubu of the All Progressives Congress, Alhaji Abubakar Atiku of the Peoples Democratic Party and Mr. Peter Obi of the Labour Party.
These three have unfolded their programmes. And they have been campaigning vigorously at rallies and meetings with stakeholders. Some of the promises that have been made by the candidates include economic growth, job creation, improved security, infrastructure development, boosting of agriculture and national unity.
The Independent National Electoral Commission with its Bimodal Voter Accreditation System (BVAS) Technology has guaranteed a free and fair election. It behooves on voting Nigerians to make the right choice.
The words of the Chairman of the National Peace Accord and former military Head of State, Retired General, Abdulsalami Abubakar, cannot be more right.
“I appeal to Nigerians, especially the electorate, to conduct themselves in a peaceful manner as the programme of electoral process is about to be implemented. “Don’t sell your votes but vote for credible leaders that would provide basic infrastructure that would enhance the wellbeing of Nigerians.
“If we want to have it good, we must work towards electing responsible people to manage our nation’s resources for optimal performance”, he said.
Dangote Refinery: End Of Fuel Importation?
When it comes to petroleum matters, Nigeria is currently like the proverbial child of a meat seller that feeds on bones. It boggles the mind why a country which is naturally blessed with crude oil has continued to depend on importation of fuel because it lacks refining capacity. This is a dire and most disturbing irony of situation.
It boggles the mind why a country which is naturally blessed with crude oil has continued to depend on importation of fuel because it lacks refining capacity. This is a dire and most disturbing irony of situation.
But this may change for good this year if the words of the Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, are to be believed. Kyari said by the middle of this year, Nigeria would cease to import fuel. Here is why: The $20 billion Dangote Refinery which is reputed to have the capacity is said to have the capacity to churn out 650,000 barrels per day of fuel. That is 50 million litres daily.
One can only hope that this dream becomes a reality.
Kyari said by the middle of this year, Nigeria would cease to import fuel. Here is why: The $20 billion Dangote Refinery which is reputed to have the capacity is said to have the capacity to churn out 650,000 barrels per day of fuel. That is 50 million litres daily.
One can only hope that this dream becomes a reality.
Security And Lingering Craving For Peace
At least, 2,968 people were killed while 1,484 were abducted in Nigeria from January to March 2022. This is according to data released by the Nigeria Security Tracker (NST). There are many other grim or cheerless statistics.
Nigeria has been bedeviled by bandit and terrorist attacks and insurgency. But some gains were made in 2022. The country has truly witnessed the weakening and decimation of numbers of terrorists and other enemies of the state through improvement in the efforts of the military and other security agencies.
But there is need for improvement in 2023. The state of security would definitely determine the virility of the nation’s economy and her general well-being.
