Emma Johnson
Fri, Aug 4, 2023 12:00 AM

NGF Calls on CBN to Respect Rule of Law and Reconsider Naira Redesign Policy

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NGF Calls on CBN to Respect Rule of Law and Reconsider Naira Redesign Policy
The Nigeria Governors' Forum (NGF) has demanded that the Central Bank of Nigeria (CBN) revisit its naira redesign policy and abide by the rule of law. The NGF expressed concerns that the policy could plunge the country into a recession and insisted on the government's respect for civil liberties and rights. The Forum also highlighted the economic consequences of the current approach, such as a booming black market, food inflation, and prolonged queues at ATMs. The NGF pledged to consolidate legal efforts by various states against the policy.

The Nigeria Governors' Forum (NGF) has called on the Central Bank of Nigeria (CBN) to listen to the voice of reason and follow the rule of law in its pursuit of the naira redesign policy.

The NGF, led by its chairman and Sokoto State Governor, Aminu Tambuwal, voiced concerns over the potential risks of the naira redesign policy recently implemented by the CBN. In a communiqué issued at the end of its meeting, the NGF warned of the looming recession and urged the federal government to consider the opinions expressed by Nigerians and other stakeholders, including the Council of State.

The NGF expressed solidarity with the Nigerian citizens who are experiencing significant difficulties due to the CBN's naira redesign and cash withdrawal restrictions policy. It argued that the CBN's current approach reflects a currency confiscation program rather than the intended currency exchange policy outlined in the CBN Act.

Highlighting the concerns over civil liberties and rights, the Forum stated, "The current approach of the CBN raises concerns about the respect for the civil liberties and rights of Nigerians as it relates to their freedom to use legitimately earned income as they so wish." It suggested that instead of a draconian approach, creating a suite of incentives to attract customers would align better with global best practices for deploying a cashless policy and deepening digital transactions.

The NGF also pointed out flaws in the CBN's argument for the policy, highlighting discrepancies in the CBN's data regarding the overall currency in circulation. It argued that the data provided by the CBN may be incomplete or that Nigerians have successfully transitioned to a cashless economy, considering factors such as GDP growth, consumer prices, and population increase.

According to the governors, the current policy has triggered a series of detrimental economic effects, including food inflation, variable commodities prices, the emergence of a vibrant black market, and long queues at ATMs and banking halls where individuals hope to obtain a fraction of their money in new notes for their daily livelihood.

While the NGF welcomes the Attorney General of the Federation's commitment to comply with the Supreme Court's ruling calling for the suspension of the CBN's plan to eliminate the use of old currency notes, it acknowledges that changes in the financial system are yet to be observed. Therefore, the NGF calls on the federal government and the CBN to respect the rule of law, heed the voice of reason from Nigerians and other stakeholders, and prevent further damage to the economy.

The NGF also announced its intention to consolidate legal efforts undertaken by individual states against the naira redesign policy. State Attorneys General will review the Supreme Court suit to pursue consolidated legal reliefs on behalf of the concerned states.

Source of content: OOO News 2023-08-03 News

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