Following the Supreme Court’s ruling that the old N200, N500 and N1,000 notes should remain legal tenders until December 31, some Point of Sale, PoS, operators, yesterday, reduced cash withdrawal charges by as much as 90 percent, even as they commenced disbursement to the public.
Meanwhile, financial sector stakeholders have commended the judgement of the Supreme Court describing it is as huge relief for the populace.
The stakeholders include Founder and former Chairman, Stanbic IBTC, Mr. Atedo Peterside; MD/CEO, RTC Consult Limited, Mr. Opeyemi Agbaje; President, Association of Bank Customers Association of Nigeria, BCAN, Dr. Uju Ogubunka; President, Association of Mobile Money and Bank Agents in Nigeria, AMMBAN, Mr Olojo Victor; and the Chief Executive Officer, Dr. Muda Yusuf, Centre for the Promotion of Private Enterprise (CPPE).
CBN awaits legal advice
Meanwhile, the Central Bank of Nigeria, CBN, is now waiting for legal advice as it affects the entire Naira redesign policy.
A top official told Vanguard that the CBN would make its position on the matter known but that it was awaiting legal advice, ostensibly, from the Office of the Attorney-General of the Federation (AGF).
PoS operators reduce charges
Speaking to Vanguard, Miss Ramota Salami, a PoS agent in Marina, said she has been accepting the old naira notes as deposit since it ceased being legal tender and now she has enough cash for her business.
“I now charge N300 for N10,000. Before the Supreme Court judgment, the charge was N2,000 for N10,000 because getting the new notes and old N200 notes was difficult and I paid heavily to get them.
“With the Supreme Court judgment, our business will revive, as many of my colleagues have closed down some of their outlets.”
Another PoS agent in Marina, Mr. Adeniyi Peter said:” The Supreme Court judgment is a relief to us PoS operators
“I now charge N500 per N10,000 and have been accepting the old N500 and N1,000 notes because some traders have been depositing their old notes since court pronouncement for fear that it may be reversed, but they have helped my business with the provision of cash which is now legal tender.”
Traders accepts old notes
Some market women and commercial transport levy collectors (Agberos) were also seen collecting the old naira notes from bus drivers who were unable to spend the old notes before it ceased being legal tender on February 10.
A bus driver enroute Agbara to CMS, Mr Sunday Okoyomo, said: “I have N10,000 of the old notes in the denominations of N500 and N1,000.
“Due to my busy schedule, I have been unable to deposit it in the bank. So I took N3,000 out of it hoping that the Supreme Court judgment will favour me and other Nigerians who still had the old money with them. And so it was.
“On hearing the reversal of the CBN policy by the Supreme court, I was very happy.
“I just gave it to an Agberos on the way now and he accepted it. This judgment will heal the wounds of many.”
Analysts comment
Commenting on the development, the President, Association of Mobile Money and Bank Agents in Nigeria, AMMBAN, Mr Olojo Victor, said: “Yes it is a good omen.
“We believe that the Supreme Court has indeed proven to be the last hope for the common man.
“The policy wasn’t well thought out even though the intention was good but it further impoverished Nigerians. It made them jobless. It made life difficult and unbearable.
“I hope that the CBN will obey the Supreme Court order to the letter so that life can resume back to normal for Nigerians again.
“As an association, it is a welcomed development and we thank the Supreme court for not letting the hope of the common man down.
“We thank the Supreme Court for upholding justice and we hope that the CBN in future engagement will put in place proper mechanisms in carrying out its policies that affect Nigerians like this.”
On his part, the President, Association of Bank Customers Association of Nigeria, BCAN, Dr. Uju Ogubunka welcomed the development saying: “We didn’t expect less.
“It is therefore a welcome development.”
Ruling protects citizens from disruptive policy – CPPE
On its part, the Chief Executive Officer, Dr. Muda Yusuf, Centre for the Promotion of Private Enterprise (CPPE) hailed the Supreme Court ruling, noting that the ruling of the apex court will protect Nigerians from what it describes as ‘disruptive policy’.
In a statement made available to Vanguard yesterday, Yusuf expressed the hope that President Buhari, the Governor of the Central Bank of Nigeria (CBN) and the Attorney General of the federation would comply with the court order in the interest of the rule of law, good order and public interest.
His words: “We welcome the Supreme Court ruling as it protects the citizens from a policy which is, by all accounts, disruptive, repressive and draconian. It is also punitive, cruel and insensitive.
“Indeed, Nigerians deserve an apology from the promoters and proponents of the policy, especially the arbitrary and uninformed mopping up of cash in the economy.
“The CBN currency redesign policy inflicted indescribable agony, suffering and distress on majority of Nigerian citizens.
“The trouble was not with the redesign, but the deliberate and unrestrained mopping up of cash in the economy.”
Peterside
Commending the Supreme Court judgement, Founder Stanbic IBTC Bank, Atedo Peterside said, “I agree that CBN did not give adequate notice and so currency redesign became ‘confiscation’.
“CBN’s autonomy is on Monetary Policy which does not and cannot stretch into the ‘confiscation of an entire asset class’ (old notes) which is still held by the States and Private Citizens.”
Similarly, MD/CEO RTC Consult Limited, Mr. Opeyemi Agbaje, said: “I supported the Supreme Court position. I didn’t agree with those who argued that the Supreme Court does not have a jurisdiction. I thought they did.
“I thought there was a valid dispute between the federal government and the state governments.
“I thought the state government have a legal interest in the welfare and prosperity of their people and if their people are being denied monetary resources and welfare because of the federal government policy they have a legitimate legal interest in the matter and I also believe that the court cannot be helpless when an institution of government, the Central Bank acts to the detriment of the welfare of the citizens of the country.
“So I was fully in support of the action and I am fully in support of the judgement of the Supreme Court has now made.” (Vanguard)
