16th February, 2023
Some financial experts have aired their opinions on the directive by President Muhammadu Buhari to allow the old N200 notes to coexist with the newly designed banknotes for 60 days (Feb. 10 to April 10).
Reacting to the directive, Prof. Uche Uwaleke, Professor of Capital Market at the Nasarawa State University, Keffi, urged the Central Bank of Nigeria to ensure an increased supply of lower denominations as well as increase the cash withdrawal limit to at least N100,000.
“More Point of Sale (PoS) machines should be procured, especially by petroleum marketers or petrol stations as many of them currently in use are malfunctioning.’’
On his part, Prof. Hassan Oaikhenan of the Department of Economics, University of Benin Benin-City, said;
“It will ease the suffering of the Nigerian people to the extent that they can at least transact business with the old N200 notes alongside the new denominations.
“Meanwhile, by implication, the president is saying that N500 and N1000 old notes still remain unusable. The question is how does that tie in with the Supreme Court’s position? That all matters should be put on hold until the issue is determined?’’ he asked.
Dr. Boniface Chizea, Managing Director of BIC Consulting Services, said the President’s pronouncements were soothing and showed compassion for the masses.
“I think it’s a welcome development; the President is compassionate about the poor people and I think we can manage the N200 notes.
“This will also accommodate one of the central thrusts of this exercise, which is to stop people from buying votes.
He urged the apex bank to also accept responsibility and ensure that it detected where there were obstacles and remove them.
He said, “If the obstacle is because the Naira that they have printed and released into the system has been underestimated, then they should print more.’’
However, Akpan Ekpo, a professor of Economics and Public Policy at the University of Uyo, Akwa Ibom, said allowing only the old N200 notes to circulate for 60 days would not solve the problem of the poor people.
“The President’s position is not fully reassuring. He should allow the old denominated notes and the new notes to be used side by side. As the banks get the old notes, they keep them, and then later, the central bank can exchange them.
“Allowing just the old N200 is just temporary, it is something, but it won’t solve the problem of the poor people,’’ Ekpo said.
Meanwhile, some traders and owners of some retail outlets have vowed to reject the old N200 notes.
Mr. Paul Akintoyibo said that the decision was good, but that he would not receive any old notes from any of his customers.
“After all, I suffered in depositing just N7,000 old notes, and now someone is telling me to start collecting another old note. No way, I will never collect the old notes again,’’ he said.
Mr Ola, who sells food stuffs along Ede road in Osun, said the reintroduction of the old N200 notes will not solve the current hardship.
He said: “I will not be part of this confusion in Buhari’s government. I will not collect any old note again. My tired is tired.”
Another foodseller who identified herself as Sowemimo said she will also reject old notes despite the new directive.
According to her, the old N200 notes will also be a problem when it cease to be a legal tender in April.