Headline

Naira Notes Scarcity: Buhari Addresses Nigerians, Seeks Patience, Understanding [ FULL TEXT]

Published

1 year ago

February 16, 2023

Editor

President Muhammadu Buhari, on Thursday, approved the restoration of the old N200 notes as legal tender.

Buhari, who spoke on many issues, empathised with Nigerians on the difficulties they are experiencing as a result of the ongoing cash crunch – a fallout of the Naira redesign policy.

Buhari also said the policy became necessary to restore the statutory control of the Central Bank of Nigeria, CBN, over money in circulation.

Full text of his speech:

My Dear Compatriots,

I have found it necessary to address you today, on the state of the nation and to render account on the efforts of our administration to sustain and strengthen our economy, enhance the fight against corruption and sustain our gains in the fight against terrorism and insecurity which has, undoubtedly, been impacted by several internal and external factors.

2.Particularly, I am addressing you, as your democratically elected President, to identify with you and express my sympathy, over the difficulties being experienced as we continue the implementation of new monetary policies, aimed at boosting our economy and tightening of the loopholes associated with money laundering.

3.Let me re-assure Nigerians, that strengthening our economy, enhancing security and blockage of leakages associated with illicit financial flows remain top priority of our administration. And I shall remain committed to my oath of protecting and advancing the interest of Nigerians and the nation, at all times.

4.In the last quarter of 2022, I authorised the Central Bank of Nigeria (CBN) to redesign the N200, N500, and N1000 Nigerian banknotes.

5.For a smooth transition, I similarly approved that the redesigned banknotes should circulate concurrently with the old bank notes, till 31 January 2023, before the old notes, cease to be legal tender.

6.In appreciation of the systemic and human difficulties encountered during implementation and in response to the appeal of all citizens, an extension of ten days was authorized till 10th February, 2023 for the completion of the process. All these activities are being carried out within the ambit of the Constitution, the relevant law under the CBN Act 2007 and in line with global best practices.

7.Fellow citizens, while I seek your understanding and patience during this transient phase of implementation, I feel obliged to avail you a few critical points underpinning the policy decision. These include:

a. The need to restore the statutory ability of the CBN to keep a firm control over money in circulation. In 2015 when this administration commenced its first term, Currency-in-Circulation was only N1.4trillion.

b. The proportion of currency outside banks grew from 78%in 2015 to 85% in 2022. As of October 2022, therefore, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking System while N2.7 trillion remained permanently outside the system; thereby distorting the financial policy and efficient management of inflation;

c. The huge volume of Bank Notes outside the banking system has proven to be practically unavailable for economic activities and by implication, retard the attainment of potential economic growth;
d. Economic growth projections make it imperative for government to aim at expanding financial inclusion in the country by reducing the number of the unbanked population; and

e. Given the prevailing security situation across the country, which keeps improving, it also becomes compelling for government to deepen its continuing support for security agencies to successfully combat banditry and ransom-taking in Nigeria

8.Notwithstanding the initial setbacks experienced, the evaluation and feedback mechanism set up has revealed that gains have emerged from the policy initiative.

9.I have been reliably informed that since the commencement of this program, about N2.1 trillion out of the banknotes previously held outside the banking system, had been successfully retrieved.

10.This represents about 80% of such funds. In the short to medium and long terms, therefore, it is expected that there would be:

a. A strengthening of our macro economic parameters;
b. Reduction of broad money supply leading to a deceleration of the velocity of money in the economy which should result in less pressures on domestic prices;
c. Lowering of Inflation as a result of the accompanying decline in money supply that will slow the pace of inflation;
d. Collapse of Illegal Economic Activities which would help to stem corruption and acquisition of money through illegal ways;
e. Exchange Rate stability;
f. Availability of Easy Loans and lowering of interest rates; and
g. Greater visibility and transparency of our financial actions translating to efficient enforcement of our anti- money laundering legislations.
11.I am not unaware of the obstacles placed on the path of innocent Nigerians by unscrupulous officials in the banking industry, entrusted with the process of implementation of the new monetary policy. I am deeply pained and sincerely sympathise with you all, over these unintended outcomes.

12.To stem this tide, I have directed the CBN to deploy all legitimate resources and legal means to ensure that our citizens are adequately educated on the policy; enjoy easy access to cash withdrawal through availability of appropriate amount of currency; and ability to make deposits.

13.I have similarly directed that the CBN should intensify collaboration with anti-corruption agencies, so as to ensure that any institution or person(s) found to have impeded or sabotaged the implementation should be made to bear the full weight of the law.

14.During the extended phase of the deadline for currency swap, I listened to invaluable pieces of advice from well meaning citizens and institutions across the nation.

15.I similarly consulted widely with representatives of the State Governors as well as the Council of State. Above all, as an administration that respects the rule of law, I have also noted that the subject matter is before the courts of our land and some pronouncements have been made.

16. To further ease the supply pressures particularly to our citizens, I have given approval to the CBN that the old N200 bank notes be released back into circulation and that it should also be allowed to circulate as legal tender with the new N200, N500, and N1000 banknotes for 60 days from February 10, 2023 to April 10 2023 when the old N200 notes ceases to be legal tender.

17.In line with Section 20(3) of the CBN Act 2007, all existing old N1000 and N500 notes remain redeemable at the CBN and designated points.

18.Considering the health of our economy and the legacy we must bequeath to the next administration and future generations of Nigerians, I admonish every citizen to strive harder to make their deposits by taking advantage of the platforms and windows being provided by the CBN.

19.Let me assure Nigerians that our administration will continue to assess the implementation with a view to ensuring that Nigerians are not unnecessarily burdened. In this regard, the CBN shall ensure that new notes become more available and accessible to our citizens through the banks.

20.I wish to once more appeal for your understanding till we overcome this difficult transient phase within the shortest possible time.

21.Fellow citizens, on the 25th of February, 2023 the nation would be electing a new President and National Assembly members. I am aware that this new monetary policy has also contributed immensely to the minimization of the influence of money in politics.

22.This is a positive departure from the past and represents a bold legacy step by this administration, towards laying a strong foundation for free and fair elections.

23.I urge every citizen therefore, to go out to vote for their candidates of choice without fear, because security shall be provided and your vote shall count.

24.I however admonish you to eschew violence and avoid actions capable of disrupting the electoral processes. I wish us all a successful General Elections.

Thank you for listening. God bless the Federal Republic of Nigeria.

Headline

Iran Hangs 53-year-old Woman, Six Others

Published

8 hours ago

May 18, 2024

Editor

Iran on Saturday hanged at least seven people, including two women, while a member of its Jewish minority is at imminent risk of execution as the Islamic Republic further intensified its use of capital punishment, an NGO said.

Parvin Mousavi, 53, a mother of two grown-up children, was hanged in Urmia prison in northwestern Iran along with five men convicted in various drug-related cases, the Norway-based Iran Human Rights (IHR) said in a statement.

In Nishapur in eastern Iran, a 27-year-old woman named Fatemeh Abdullahi was hanged on charges of murdering her husband, who was also her cousin, it said.

IHR says it has tallied at least 223 executions this year, with at least 50 so far in May alone. A new surge began following the end of Persian New Year and Ramadan holidays in April, with 115 people including six women hanged since then, it said.

Iran carries out more recorded executions of women than any other country. Activists say many such convicts are victims of forced or abusive marriages.

Iran last year carried out more hangings than in any year since 2015, according to NGOs, which accuse the Islamic republic of using capital punishment as a means to instill fear in the wake of protests that erupted in autumn 2022.

“The silence of the international community is unacceptable,” IHR director Mahmood Amiry-Moghaddam told AFP.

“Those executed belong to the poor and marginalised groups of Iranian society and didn’t have fair trials with due process.”

‘Killing machine’

IHR said Mousavi had been in prison for four years. It cited a source as saying she had been paid the equivalent of 15 euros to carry a package she had been told contained medicine but was in fact five kilos of morphine.

“They are the low-cost victims of the Islamic Republic’s killing machine, which aims at instilling fear among people to prevent new protests,” added Amiry-Moghaddam.

The group meanwhile said a member of Iran’s Jewish community, which has drastically reduced in numbers in recent years but is still the largest in the Middle East outside Israel, was at imminent risk of execution over a murder charge.

Arvin Ghahremani, 20, was convicted of murder during a street fight when he was 18 and is scheduled to be executed in the western city of Kermanshah on Monday, it said, adding it had received an audio message from his mother Sonia Saadati asking for his life to be spared.

His family is seeking to ask the family of the victim to forgo the execution in line with Iran’s Islamic law of retribution, or qesas.

Also at risk of execution is Kamran Sheikheh, the last surviving member of a group of seven Iranian Kurdish men who were first arrested between early December 2009 and late January 2010 and later sentenced to death for “corruption on earth” over alleged membership of extremist groups, it said.

Six men convicted in the same case have been executed in the last months almost one-and-a-half decades after their initial arrest, the last being Khosro Besharat who was hanged in Ghezel Hesar prison outside Tehran this week.

There has been an international outcry meanwhile over the death sentence handed out last month to Iranian rapper Toomaj Salehi, seen by activists as retaliation for his music backing the 2022 protests. His lawyers are appealing the verdict.

AFP

Headline

Israeli Leaders Disagree Over Post-war Gaza Governance Amid US Pressure

Published

9 hours ago

May 18, 2024

Editor

New divisions have emerged among Israel’s leaders over post-war Gaza’s governance, with an unexpected Hamas fightback in parts of the Palestinian territory piling pressure on Prime Minister Benjamin Netanyahu.

The Israeli army has been battling Hamas militants across Gaza for more than seven months while also exchanging near-daily fire with Iran-backed Hezbollah forces along the northern border with Lebanon.

But after Hamas fighters regrouped in northern Gaza, where Israel previously said the group had been neutralised, broad splits emerged in the Israeli war cabinet in recent days.

Netanyahu came under personal attack from Defence Minister Yoav Gallant for failing to rule out an Israeli government in Gaza after the war.

The Israeli premier’s outright rejection of post-war Palestinian leadership in Gaza has broken a rift among top politicians wide open and frustrated relations with top ally the United States.

Experts say the lack of clarity only serves to benefit Hamas, whose leader has insisted no new authority can be established in the territory without its involvement.

“Without an alternative to fill the vacuum, Hamas will continue to grow,” International Crisis Group analyst Mairav Zonszein told AFP.

Emmanuel Navon, a lecturer at Tel Aviv University, echoed this sentiment.

“If only Hamas is left in Gaza, of course they are going to appear here and there and the Israeli army will be forced to chase them around,” said Navon.

“Either you establish an Israeli military government or an Arab-led government.”

US pressure

Gallant said in a televised address on Wednesday: “I call on Prime Minister Benjamin Netanyahu to make a decision and declare that Israel will not establish civilian control over the Gaza strip.”

The premier’s war planning also came under recent attack by army chief Herzi Halevi as well as top Shin Bet security agency officials, according to Israeli media reports.

Netanyahu is also under pressure from Washington to swiftly bring an end to the conflict and avoid being mired in a long counterinsurgency campaign.

Washington has previously called for a “revitalised” form of the Palestinian Authority to govern Gaza after the war.

But Netanyahu has rejected any role for the PA in post-war Gaza, saying Thursday that it “supports terror, educates terror, finances terror”.

Instead, Netanyahu has clung to his steadfast aim of “eliminating” Hamas, asserting that “there’s no alternative to military victory”.

Experts say confidence in Netanyahu is running thin.

“With Gallant’s criticism of Netanyahu’s failure to plan for the day after in terms of governing Gaza, some real fissures are beginning to emerge in the Israeli war cabinet,” Colin P. Clarke, director of policy and research at the Soufan Group think tank, wrote on X, formerly Twitter.

“I’m not sure I know of many people, including the most ardent Israel supporters, who have confidence in Bibi,” he said, using Netanyahu’s nickname.

Hostage ‘impasse’

The Gaza war broke out after Hamas’s attack on southern Israel which resulted in the deaths of more than 1,170 people, mostly civilians, according to an AFP tally of Israeli official figures.

The militants also seized about 250 hostages, 125 of whom Israel estimates remain in Gaza, including 37 the military says are dead.

Israel’s military retaliation has killed at least 35,386 people, mostly civilians, according to the Hamas-run Gaza’s health ministry, and an Israeli siege has brought dire food shortages and the threat of famine.

Many Israelis supported Netanyahu’s blunt goals to seek revenge on Hamas in the aftermath of the October 7 attack.

But now, hopes have faded for the return of the hostages and patience in Netanyahu may be running out, experts said.

On Friday, the army announced it had recovered bodies of three hostages who were killed during the October 7 attack.

After Israeli forces entered the far southern city of Rafah, where more than a million displaced Gazans were sheltering, talks mediated by Egypt, the United States and Qatar to release the hostages have ground to a standstill.

“The hostage deal is at a total impasse — you can no longer provide the appearance of progress,” said Zonszein of the International Crisis Group.

“Plus the breakdown with the US and the fact that Egypt has refused to pass aid through Rafah — all those things are coming to a head.”

Headline

Burkina Faso, Mali, Niger Finalise Regional Alliance Project

Published

12 hours ago

May 18, 2024

Editor

Junta-run Burkina Faso, Mali and Niger have finalised plans to form a confederation after turning their backs on former colonial ruler France to seek closer ties with Russia.

Their foreign ministers met Friday in Niger’s capital Niamey to agree on a text establishing the Confederation of the Alliance of Sahel States (AES).

“The objective was to finalise the draft text relating to the institutionalisation and operationalisation of the Confederation of the Alliance of Sahel States (AES)”, said Niger Foreign Minister Bakary Yaou Sangare as he read the final statement late Friday.

He said the text would be adopted by the heads of state of the three countries at a summit, without specifying the date.

“We can consider very clearly, today, that the Confederation of the Alliance of Sahel States (AES) has been born,” Malian Foreign Minister Abdoulaye Diop said after meeting General Abdourahamane Tiani, the head of Nigerien military regime.

The third foreign minister at the meeting was Burkina Faso’s Karamoko Jean-Marie Traore.

The Sahel region has been subject to deadly jihadist violence for years, which they accused France of not being able to curb.

The three countries said late January they were quitting The Economic Community of West African States (ECOWAS), which they said was under French influence, to create their own regional grouping.

AFP