Naira, fuel scarcities – APC Governors threaten ‘unilateral actions’
Details have emerged of another meeting held by States Governors with the Governor of the Central Bank of Nigeria, Godwin Emefiele, over the currency swap in the country.
The meeting was between Governors elected on the platform of the All Progressives Congress and the CBN Governor.
The Governors, on the aegis of the Progressives Governors’ Forum, met with Emefiele in his Abuja home from the night of January 30, 2023 until the wee hours of January 31, 2023.
A snippet of the meeting, obtained by The Eagle Online, had it that after a meeting of the whole, the PGF chose four of its members to meeting with Emefiele.
The PGF also invited the Chairman of the Senate Committee on Banking, Currency and Financial Institutions, Senator Andy Uba, who is also the governorship candidate of the APC for the 2023 election in Kaduna State, to join the governors attending the meeting.
According to the snippet sighted by The Eagle Online, the Lagos State Governor, Babajide Sanwo-Olu; Ogun State Governor, Prince Dapo Abiodun; Yobe State Governor, Mai Mama Buni; and the Kaduna State Governor, Nasir el-Rufai, were at the meeting.
According to the outcome of the meeting signed by El-Rufai, the PGF noted “with concern the hardship imposed on citizens by the double whammy of fuel shortages and the currency swap initiative of the CBN and FGN.
“PGF notes that this major economic policy was designed and implemented without any reference to subnational governments and the diverse challenges and peculiarities of various states of Nigeria.
T”he currency swap implementation has been fraught with logistical difficulties, inadequate advocacy and clear shortages of cash, resulting in anger of the citizenry, frustration and significant slowdown in trade, exchange and economic transactions.”
According to the snippet, the Governors are worried that Nigerians may react violently against the policies of the Federal Government of Nigeria, which have brought hardships on them, through their votes against the APC in the upcoming general election.
While the presidential and National Assembly elections are scheduled for February 25, 2023, the governorship and House of Assembly elections will take place on March 11, 2023.
According to the Independent National Electoral Commission, there are 93,468,008 registered voters for the elections in which the PGF are seeking to see the presidential candidate of the APC, Asiwaju Bola Ahmed Tinubu, succeed President Muhammadu Buhari, who was elected on the platform of the party.
The snippet, sighted by The Eagle Online, signed by Governor El-Rufai, captured the fears of the PGF on the scarcities of Naira notes and fuel thus: “The anger of the electorate presents a clear and present danger to APC’s prospects in the February and March elections.
“What appears to be a deliberate policy to demonetize the economy within a matter of weeks under the policy of currency redesign has exacerbated frustration levels and could lead to breakdown of law and order as the February 10th deadline approaches.
“The PGF met, considered these issues and mandated the four representatives listed above to meet with the CBN Governor to suggest solutions to the quagmire.
“The meeting took place in the CBN Governor’s residence between the night of January 30 through to the early hours of January 31, 2023.”
At the meeting with Emefiele, the PGF presented three proposals.
These were: “Extend deadline for currency swap and continued use of new and old banknotes by six months as per resolutions of the two Houses of the National Assembly.
“The CBN, the Banking System and State Governments to jointly work in the intervening period on (a) enhanced advocacy (b) security and logistics (c) travel to markets, towns and villages for currency, and (d) accelerated financial inclusion to ensure seamless implementation of cashless policy during the extended period.
“CBN and PGF to see PMB on Tuesday or Wednesday to present the joint agreement of CBN and PGF for the concurrence of PMB and immediate announcement.”
In the event that none of these could be achieved, the outcome of the meeting added: “In the event that either CBN or PMB (or both) are unable to accede to the compelling economic, socio-political, electoral and internal security risks of insisting on the February 10th 2023 deadline, the PGF will take further unilateral actions in the overall interest of the citizens of their states.”
The actions to be taken by the Governors were, however, not spelt out in the memo from the meeting.
But there are suspicions that the interview granted Channels Television by El-Rufai, in which he riled against the twin issues bedevilling the country: fuel and Naira scarcities, appears to be one of them.
Still on the meeting, the snippet reported the CBN Governor as having responded: “The CBN Governor appreciated the State Governors for their concern, and for the consideration shown to him when he faced challenges in the last few weeks.
“He thanked PGF for reaching out and expressed concern that the proposals presented were difficult to accept without further reflection and consultation.
“He was of the view that the February 10th deadline should be maintained, while invoking the provisions of sections 20 and 22 of the CBN Act to continue to accept any ‘old’ currency as legal tender for some extended period after that.
“In the event that the PGF finds his counter-proposal unacceptable, the CBN Governor also promised to think through and bring up other options for further discussion with the PGF within the next 24 hours before the anticipated meeting with PMB.”
For the PGF, the following steps were proposed as a fallout of the meeting: “PGF Chair to seek an appointment for the entire APC Governors to meet with PMB either evening of Tuesday Jan 31 or any time on Wednesday Feb 1, 2023.
“PGF Chair to schedule another PGF briefing and review meeting sometime on Tuesday Jan 31 or Wednesday Feb 1, 2023.
“PGF Select Committee to continue exploring other options, meeting other stakeholders and developing back-up plans in the event of continued inflexibility of CBN and FGN on the currency swap timeline and implementation.”
As at press time, it could not be ascertained if the Chairman of the PGF, Governor Atiku Bagudu, had succeeded in getting an appointment for a meeting with President Buhari or if the Governors themselves have met.
