New Naira: 300 LGs don’t have banks, Says APC chieftain

The Nationwide Vice Chairman of the All Progressives Congress (North-West), Salihu Lukman, has disclosed that over 300 out of 774 Native Governments, particularly within the North, haven’t any presence of economic establishments to swap, entry the brand new foreign money.

Talking on the brand new Naira swap coverage enforced by the Central Financial institution of Nigeria, Lukman stated CBN have to take contingency measures to develop the banking system, in order to allow residents change the outdated notes in areas that don’t have financial institution branches or money centres resembling ATMs.

That is whilst he bemoaned the shortcoming of his celebration leaders to persuade the President Muhammadu Buhari, to rethink the implementation of the controversial coverage.

Lukman, who can also be the Zonal Chairman of North-West APC, reaveled this in a press release titled “Cashless Financial system and Presidential Cabal”, which was launched in Abuja on Thursday.

Additionally Learn: World Bank, IMF Others Warn CBN Against Naira Swap Deadline

The Kaduna politician’s concern is coming barely 24 hours after the Supreme Courtroom quickly halted the transfer by the Federal Authorities via the CBN to ban using the outdated naira notes past February 10, 2023.

A seven-member panel led by Justice John Okoro had granted an interim injunction in opposition to the CBN and Federal Authorities, permitting the outdated N200, N500 and N1000 to stay authorized tenders past the February 10 deadline till the case is absolutely disposed.

With the presidential election lower than 16 days away, the APC vice chair stated what the CBN governor didn’t consider was that solely about 39 per cent of Nigerians have financial institution accounts.

In accordance with him, greater than 300 out of the 774 Native Governments within the nation haven’t any financial institution branches or money centres.

The assertion learn, “With nationwide elections few days away and deliberate money squeeze enforced by a deliberate coverage of the Central Financial institution of Nigeria, Nigerians are right this moment confronted with essentially the most unsure of occasions.

“This assumes that residents have financial institution accounts and that financial institution branches exist in each a part of the nation. The truth, nevertheless, is that solely about 39 per cent of Nigerians have financial institution accounts. Greater than 300 out of the 774 Native Governments within the nation haven’t any financial institution branches or money centres. The place they exist, the financial institution branches and money centres are largely situated within the headquarters. Particularly, by way of money centres, a complete variety of automated teller machines within the nation is lower than 20,000.

“These data counsel the necessity to take additional steps to strengthen the banking system within the nation to fulfill up with the brand new calls for that shall be occasioned by the brand new coverage. It should clearly require contingency measures to develop the banking system, such that residents may change the outdated notes in areas that don’t have financial institution branches or money centres resembling ATMs. On condition that the Worldwide Financial Fund in November 2021 reported that Nigeria’s banks closed 234 branches and 649, ATMs, ought to have given a powerful warning that the ideas of ceteris paribus (all situations remaining the identical) would translate to failure for the brand new coverage.

“Sadly, all these had been missed. And for no matter causes, the CBN and the Federal Authorities proceed to delude themselves that the brand new coverage can succeed with a really weak banking actuality. In these circumstances, each the outdated and the brand new notes have disappeared throughout each a part of the nation. Even individuals with financial institution accounts can’t entry their cash. In some way, as a result of we’re approaching the election interval, the gullibility of Nigerians is being exploited.”