By Iorgboko Ama Michael
It has been up to three weeks now that Nigerians are facing frustrating challenges in getting money for business transactions and other life money related issues.
The reason for this hardship is not unconnected to Nigeria’s Central Bank policy of redesignation of N200, N500 and N1000 naira notes.
Even though the apex bank has extended the deadline_from 31st January to 10th February _ in which the old naira notes would cease to be a legal tender, having access to the new naira note has become a luxury. Now, the queues in front of various ATMs are lengthier than that of the distance from Sokoto to Maiduguri.
Meanwhile, many people may wonder why the apex bank decided to redesign the naira notes in the first place.
First, the policy is aimed at curtailing the hyperinflation that the country is currently facing at hand. In a situation where there is a high rate of inflation, the CBN takes the responsibility of controlling it, and this can come in different ways which naira redesignation is one.
When there is a high rate of inflation in the country, the country’s currency depreciates, thereby reducing the value of the purchasing power of citizens and increasing hardship to the standard living of the citizens of a country. The case is just the same in Nigeria currently. The price of commodities are increasing on a daily basis and reducing the value of money everyday. It’s the right of the apex bank to make sure that prices of commodities are low so as to meet the level of common citizens. For that purpose, the central bank decided to redesign the currency in order to seize or reduce its circulation.
Perhaps, this is not the first time that the naira has been redesigned, some years back, the apex bank redesigned naira notes such as N100, N50, N20 and N10.
Why is this time different?
The N1,000 and the N500 naira notes are the highest currency in the country. So their seizure or reduction in the circulation will surely bring money scarcity in the country.
Now why can’t both the old and new notes co-exist? The reason is that there is too much money in circulation and that’s why we’re facing a high inflation rate in the country. Our aggressive leaders stole so much money that banks cannot keep them. They stored them in their private houses for their selfish interests. If the central bank decides that both new and old notes should co-exist, those aggressive leaders who stole and hid money in their homes will release theirs and the main reason behind the naira redesignation would not be actualized.
Every decision taken by the central bank is for our benefits. We really have to accept it with all heart and with time everything will be very well. Bear in mind that the rich don’t feel inflation, at any amount goods are sold, they have money to buy but it is not the same with the common man.
Let’s remember that the beginning of everything is not always easy.