Since the announcement of the Naira redesign policy on October 26, 2022, some sort of ‘war’ had been raging between the drivers of political ‘expediency’ and economic imperatives of the Nigerian polity. For the first time in living memory, wielders of political power openly confronted and stoutly stood against economic management policies of the Federal Government.
However, as the end-January deadline was approaching, powerful political power brokers and their cohorts were perfecting both clandestine and obvious moves not only to scuttle the currency initiative but to have it fully reversed and jettisoned. Thus, to effectively pre-empt the deadline, three state governments sued the Federal Government at the Supreme Court; and the apex court pronto gave an ex parte ruling, suspending the stoppage of the old currencies from being legal tender.
However, rather than assuage frayed nerves, this conflicting scenario created more tension and confusion in the polity. By this time, the apex bank, apart from re-introducing the ‘old’ 200 naira notes as ordered by Mr President, had practically mopped up all ‘old’ notes and stuck to its new policy of ‘minimal’ cash withdrawal limits by all economic agents.
In this milieu, the apex court refused to vacate its ex parte stance but instead adjourned its ruling to 03 March 2023. As February 25 got closer, the polity got asphyxiated, financially—and virtually every bank branch across the country was mobbed by deluge of customers who wanted to have some cash. In not a few locations, crowds of bank customers went wild and razed and/or vandalized bank buildings and other properties.
However, the monetary policy had also come up with a motely of unintended sequels and ripples, including the stifling of the economy and diminishing of the quality of life of the citizenry. In point of fact, the acute cash shortages across the country since February 2023 practically grounded the Nigerian economy. For instance, Stanbic IBTC Bank, in its February Purchasing Managers Index report has disclosed that the PMI data dropped below the 50.0 no-change mark to 44.
The masses are the ones suffering. These political class have their ways for it.