Recirculation Of Old N200 Temporary Measure To Nigeria’s Monetary Policy Challenge—Economist

The decision of the Federal Government to allow the old N200 notes to coexist alongside the new notes has been described as a relief for ordinary Nigerian citizens.

Ndubuisi Nwokeoma, a Professor of Economics and the Director of the Centre for Economic Policy Analysis and Research (CEPAR), University of Lagos, said this while reacting to the approval by President Muhammadu Buhari to recirculate the old N200 note alongside the new notes.

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On Thursday, Buhari addressed the nation over the protest that brewed due to the naira redesign policy of the Central Bank.

Buhari however bowed to the pressure from Nigerians and directed the CBN to recirculate N200 notes until April 10, 2023.

But he insisted that the old N1,000 and N500 will no longer be accepted for transactions and should be returned to the apex bank.

Before the decision, protest had erupted in Edo, Lagos, Kwara and Kano and Ibadan States leading to the destruction of banking facilities.

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But the economist said on Arise Tv that any attempt to recirculate the old N1,000 and N500 notes will allow vote buying at the expense of a credible election.

The professor said, “At this peculiar period in our nation when we have the election coming up in less than two weeks, I think we need to take off something that is quite unique.

“In ordinary times, we can say let these notes circulate side by side until we are able to get the notes available for economic transactions but when we have these confirmed occurrences across various elections at the state level that vote buying is a factor in determining who wins and who does not win the election, I think that is an issue.

“Inflation definitely will be affected. The Central Bank will still have its job cut out for it. This one cannot be the medicine that will solve all their problems. There is still a need to take a look at how to get all the monies back into the banking system and the issue of financial inclusion.”

He said one thing that has not been hailed about the policy is the increase in cashless transactions.

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Nwokeoma said, “Now we are gaining, the government has been trying to get people to pay cashless over time. Actually, people are now transacting. Over this period, this policy has been able to help us to enhance the push for having a cashless economy.

“But this particular medicine will not cure all the problems of the Central Bank but in bringing out N200, will assist us to: make sure that monies that a stacked away will be useless to those that are complicit and if you bring the money later to CBN, you will explain how you got the money and that will bring in the EFCC and other agencies of the government.

“And ordinary Nigerians cab be able to transact and enter buses, buy pepper, yam and tomatoes when the N200 will be made available.”

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