Full Text of President Muhammadu Buhari's National Broadcast on the Challenges of the currency swap and state of the nation, on the 16th February, 2023.
"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.
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