Cashless Policy: Struggle For Supremacy Between States and Federal Government, Over Use Of Old CBN, Notes

Elizabeth Chukwuma

 The Attorney Generals, AG, of   some of the states of the Federation and Abuja, the Federal Capital Territory ,FCT, appear  set to continue the Legal battle with Abubakar Malami, minister of Justice and Attorney General of the Federation, AGF, over the naira swap policy. Already more than 10 state governments, including Kano are at the Supreme Court over the matter.  

The CBN, may have cued into President Muhammadu Buhari’s directive that the old N200, Note, should be allowed to co-exist alongside the newly redesigned N200,N500 and N100 Notes, leaving out the old N500 and N1000 Notes. Indded, those hoarding the old CBN N500 and N1000 Notes may have known that the Katsina state born Nigerian President will not reverse the decision that they may have been instrumental for the fake news making the rounds that the Nigerian President has given  a counter-order to the CBN, to receive the old N500 and N1000 that had had earlier been turned as legal tender.

Emefiele: CBN Governor

The unidentified Group had given the impression that Godwin Emefiele, led CBN, has ordered the banks to accept the old N500 and N1000 Notes with immediate effect.  The group claimed that the bank had pegged the maximum amount the banks  can collect  from customers at N500,000.00.

Unknown to many, the alleged CBN, message was fak as le, to further throw the country into chaos, with the intention to truncate the 2023, general elections. Osita Nwanisobi, the apex bank, Director of Communications at the instance of  Emefiele, the CBN, governor, had debunked the claim of the mischief  makers.

 Nwasinobi, the apex bank spokesperson,  was said to have made it clear to Nigerians, that the bank has not not authorized the Money Deposit Banks, MDB, or any of its acredited Super agents across the country to collected the old N500 and N1000, Notes, which have ceased to legal tenders.  He noted that President’s Muhammadu Buhari’s nationwide broadcast on Thursday, February 16, 2023, on the issue  was very clear and does not require any explananation.

The Katsina state born Nigerian President has directed the CBN Authorities to allo on the matter.w only the N200 old Note to circulate alongside the newly designed N200, N500 and N1000 , Note as legal tender between February 16, 2023 to April 16, 2023, an interval of 60 days. It was not surprising why the bank has called on ‘’members of the public to disregard any such message or info rmation not formally released from the regulatory body.

Appealing to Media PR actioners to verify their information before going to the press, the CBN, Director of Communications,  disclosed that it is the only way to stop giving prominence to fake news. The ruling APC , state governors appear to be the main opposition party to the  Federal government naira redesign policy, with the arrowhead being Nasir El-Rufai, a former minister of  FCT,   during Olusegun Obasanjo’s Administration and now governor of Kaduna state.

Mohammed Badru Abubakar, governor of Jigawa state , may have opened the floodgate,  1to resist the FG, directive that hat the old N500 and N1000, had ceased to be legal tenders in Nigeria , with effect from February 10, 2023, excluding the N200  Note , which will still  be circulation till April 16, 2023.The Jigawa state governor was said to have ordered all the Commercial banks operating in the state, corporate organisations,ministries, agencies,  traders and Commercial bus drivers  not to reject the old N500 and N1000 CBN , Notes.He was said to have made it clear to the people of the state thata anyone who rejects the old N500 and N1000   Notes, will face sanctions from the state government.

Gov. Gandunje: Insists That Old CBN, Notees Must Be In Use In Kkano State, Threatens To Sanction Banks Which RejectsIt

Even Abdullahi Umar Gandunje, governor of Kano state, has issued  a stern warning  to banks  operating in the state, threatening ‘’ to destroy  any bank  that refuses to collect the old N500 or N1000 Notes’’. The governor  many have sent a signal to Emefiele , the CBN, governor, that the state government governments ae ready to slug it out with the apex bank  , when he declared that the state government  will not ‘’tolerate any disobedience  from any financial  institution  within its jurisdiction’’.  The governor may have put feas on the MDB, when he said that the space allocated to the banks to do their business in the state would be used for building schools, hat will provide quality education to the children.

Abba Anwar, Chief Press Secretary, CPS, to Gandunje, may have shocked Nigerians, when he said that ‘’the governor is not making an empty  threat’’, noting that  the government has  the power  to take such measures, if it is in the interest of the people. The CPS, has made it clear to those that cares to listen  that  the Kano state governor  is determined  ‘’to ensure  that  the people of the state  do not  suffer undue  hardship  as a result of the CBN, cashless policy.

Abiodun: Governor, Ogun State, Threatens To Sanction Banks Which Reject The Old N500 And N1000 Notes

Dapo Abiodun, governor of the south west state of Ogun, had said on Friday, February 17, 2023,  that the old N500 and N1000 Notes, will remain to be legal tender  in the state, threatening  ‘’to sanction Commercial banks  and  business outlets  rejecting the old Notes.

Addressing  a crowd of bank  customers  during his re-election  campaign   in Obafemi/Owode  Local Government Area who  are having  difficult  time  accessing their funds, he has gladdened their heart when he said  that ‘’any bank  that does not  collect the old N500 and N1000 Notes  will be shut down and certificate of occupancy revoked.

The state governors that had insisted that the N500 and N100 bank Notes, must still be in use in their respective states despite the Presidential directive that only the old the old N200 Note should be in circulation, was because of the subsisting Supreme Court order that clearly states that ‘’the status quo should be maintained  in this matter until that order is vacated or determined. The Court had said that anybody that does otherwise is acting against the position of the Court, which the Nigerian President and the CBN, have done.

Fears are being expressed in both official quarters that many banks and other financial Institution may be shut down because of the threat of sanctions by  some  of the state governors if they continue to reject the old N500 and N100 Notes.

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