Afrigather Femi Falana, a human rights lawyer in Nigeria, has revealed that the Central Financial institution of Nigeria (CBN) solely printed 402 billion naira ($893 million) out of the three.2 trillion naira ($7.1 billion) it collected from varied sources throughout the current foreign money redesign train.
That is about simply 13% of the cash recalled by the Central Financial institution.
Falana made the revelation whereas talking on Channels Tv’s Dawn Every day on Monday. He mentioned he needed to take authorized motion underneath the Freedom of Data Act to acquire the data from the CBN.
The foreign money redesign train, which the CBN introduced in October 2022, was aimed toward curbing counterfeiting and terrorism financing. Nevertheless, it led to a extreme scarcity of latest naira notes in circulation, which brought about widespread hardship and financial disruption.
Falana criticized the CBN for failing to adequately print and distribute the brand new notes earlier than the deadline for the outdated notes to be withdrawn. He additionally accused the financial institution of failing to be clear concerning the sum of money it had printed.
“To my utter dismay, the central financial institution collected about 3.2 trillion from prospects and others, however the financial institution solely printed 402 billion naira,” Falana mentioned.
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The CBN has not commented on Falana’s allegations. Nevertheless, in a press release launched in February 2023, the financial institution mentioned that it had printed and distributed 1.9 trillion naira in new notes as of January 31.
The foreign money redesign train has been extensively criticized by economists and companies alike. Many argue that it was poorly executed and that it has had a unfavourable affect on the economic system.
Falana’s revelation has raised additional questions concerning the CBN’s dealing with of the foreign money redesign train and its transparency. It’s also prone to gas hypothesis concerning the motives behind the train.
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Implications of Falana’s revelation
Falana’s revelation is critical for a number of causes. First, it highlights the CBN’s failure to plan for and execute the foreign money redesign train adequately. The truth that the financial institution solely printed 13% of the foreign money it recalled means that it was both unprepared for the size of the train or that it underestimated the demand for brand new notes.
Second, Falana’s revelation raises issues concerning the CBN’s transparency. The financial institution has been accused of being secretive concerning the foreign money redesign train, and its refusal to touch upon Falana’s allegations is prone to additional erode public belief.
Third, Falana’s revelation raises questions concerning the motives behind the foreign money redesign train. The CBN has acknowledged that the train was aimed toward curbing counterfeiting and terrorism financing. Nevertheless, some critics have argued that the train was politically motivated and that it was designed to focus on the opposition.
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Falana’s revelation is prone to have quite a lot of implications for the Nigerian economic system. The scarcity of latest naira notes has already had a unfavourable affect on companies and shoppers. Falana’s revelation is prone to additional erode confidence within the economic system and make it harder for companies to function.
The CBN’s dealing with of the foreign money redesign train has been extensively criticized, and Falana’s revelation is probably going so as to add to the stress on the financial institution to be extra clear and accountable.
