By Kelechi Deca
Few days ago, I returned to Nigeria in the company of two professional colleagues who were visiting the country for the first time. Coming from African countries, their image of Nigeria was quite bloated thus I was forced to stand in the gap and ensure every stain with the capacity to taint the image of the country was immediately laundered clean. And you would agree with me that that was a very hard job to undertake.
However, as soon as we descended to the second floor of the Terminal 2 of the Murtala Mohammed Airport to change money at the bureau de change, my struggle began, they could not understand why and how a country would have two different currency note for the same value, and both acts as legal tender interchangeably. Being journalists with bent on finance and economy, they started throwing barrages of questions my way.
It could be recalled that the then Governor of the Central Bank of Nigeria, Godwin Emefiele, in October 2022 disclosed a plan to redesign some naira denominations (N200, N500, and N1000 notes) and reduce currency circulation. He claimed at the time that the redesign policy aims to improve Nigeria’s monetary policy, promote digital alternatives like the eNaira, and enhance the currency’s integrity. Notably, it also aims to reduce cash circulation for illicit activities like kidnapping-for-ransom and vote-buying.
In what was one of the most chaotic processes in recent history, we witnessed people die while queuing at banks all day just to exchange the old notes with the new ones. As if that was not enough, the new ones were so scarce that it was being sold for almost double the values. That was the era of Nigerians buying money with money. The redesign policy resulted in a cash shortage and economic difficulties for Nigerians who rely on cash. The CBN then failed to take into account the fact that the informal sector accounts for 65 percent of the country’s GDP and 93 percent of employment, and when 90 percent of transactions in the informal economy are in cash.
A new government came in and that policy direction had a twist, as it was suspended following an order of the Supreme Court granting the prayer of the Minister of Justice and Attorney-General of the Federation to extend the use of old Naira banknotes ad infinitum. In the judgment, the court maintained that the old and new notes should remain as legal tender beyond December 31 until the Federal Government puts a process in place for their replacement or redesign after due consultation with relevant stakeholders.
The Central Bank while stating that both paper notes will continue to be used noted that “For the avoidance of doubt, the Supreme Court ordered that the old versions of N200, 500, and N1,000 banknotes shall continue to be legal tender, alongside the re-designed versions. “Accordingly, in line with Section 20(5) of the CBN Act 2007, all banknotes issued by the Central Bank of Nigeria, will continue to remain legal tender, indefinitely.”
The statement further enjoined members of the public, “To accept all Naira banknotes (old or re- designed) for their day-to-day transactions and handle these banknotes with the utmost care, to safeguard and protect the lifecycle of the banknotes. That ad infinitum may as well be ad infinitum as no effort by the Central Bank not the Federal Government to address the misnomer.
How do I explain to my visitors that since 2023, that the Central Bank of Nigeria has not taken any step to correct the misnormar? How do I tell them that none of the reasons gave by the apex bank for introducing the redesigned notes were achieved and the present team at the Bank seem to have forgotten the embarrassing fact that we have two different notes for each of our three higher denominations?
The leadership of Nigeria seems to have lost count of the symbolisms a national currency conveys. If they cannot manage the naira to have a reasonable value, can’t they at least protect its integrity? A national currency is the most fundamental symbol signifying the government’s authority and control over its monetary system and economy. That is why the notes feature iconic national symbols: coats of arms, national animals or flowers, mottos, flags, or significant landmarks (mountains, rivers, buildings).
A currency note acts as miniature canvases depicting scenes from national history, mythology, folklore, or traditional art forms, showcasing important historical events, architectural marvels, native flora and fauna, or traditional crafts. But above all, the very existence and acceptance of the note imply trust in the issuing government and central bank.
A country’s currency note highlights the choice of figures and imagery that reflects what the nation values: freedom, democracy, peace, scientific achievement, artistic excellence, natural beauty, or social progress. A stable, widely accepted currency enhances a country’s standing and recognition on the global stage and is a portable piece of national propaganda and identity.
There is need for the government to curb the embarrassment of this double notes representing same currency which is not just confusing but also a misnomer as there is nowhere on earth where such is allowed to go on ad infinitum. It says a lot about this country, how it is managed, and how serious we are as a people.
Kelechi Deca, a journalist and public affairs analyst writes from Lagos.