Wednesday brief: Emefiele’s delusions
+ Tems raises the bar with Oscar nomination
Good morning.
We are covering the central bank’s decision to stick with its January 31 deadline for the expiration of old naira notes and Tems’ landmark Oscar nomination.
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Emefiele’s delusions
The central bank governor, Godwin Emefiele, addressed the media on Tuesday after the bank’s monetary policy committee meeting. He announced an increase in the benchmark interest rate from 16.5 percent to 17.5 percent as part of efforts to tame spiraling inflation.
The CBN governor also said the bank will not shift its January 31 deadline for the expiration of old currency notes.
Quotable: “I must say here that unfortunately, I don’t have good news for those who feel that we should shift the deadline,” Mr. Emefiele said. “My apologies.”
He argued that “100 days” was “more than adequate” for Nigerians to trade in their old notes and that the CBN “took every measure to ensure all the banks remain open to receive all old currencies.”
Reaction: Federal lawmakers have called for the CBN to extend the deadline by at least six months.
Quotable: “In rural Nigeria, there are no banks and people transact businesses with cash more often,” senate president Ahmad Lawan said. “There is no doubt that we must have window for exchange. We must have policies by the CBN to have bank branches established in rural areas. We need this extension for the most ordinary Nigerians.”
My take: As of Monday, ATMs at large banks in Lagos, were still dispensing old naira notes. It is obvious that the January 31 deadline is unrealistic, and the CBN has no choice but to shift it. Mr. Emefiele has said that the policy's goal is to tighten the bank's control over the flow of money so that crimes like kidnapping for ransom are less likely to happen. But what’s the hurry ahead of a general election?
There has to be something I’m missing, or Mr. Emefiele has a gun to his head. In 2016, the Indian government decided to cancel the validity of its two highest denominations as a way to counter black market activities. That decision hurt millions of poor people without credit cards or bank accounts who struggled to make ends meet, but it hasn’t solved India’s black market problems.
Currencies are not meant to be forced out but phased out, in the words of one federal lawmaker and Mr. Emefiele should know this. Illegal crimes need to be stopped in every way possible, but monetary policy is not a Swiss army knife. To think otherwise is to deceive oneself.
Related: Mr. Emefiele said the total revenue collected as stamp duty between 2016 and 2022 is N370.7 billion and not N89 trillion as federal lawmaker Gudaji Kazaure claimed last month.
What else is happening?
Fuel scarcity: The federal government said a 14-man steering committee has been set up to find lasting solutions to the supply and distribution of petroleum products. The committee’s chairman is President Muhammadu Buhari.
Data economy: Nigeria’s mobile internet subscribers rose to 154.28 million in December, a 37 percent increase in eight years, according to the Nigerian Communications Commission.
Historic: Pop sensation Tems has become the first Nigerian artist to earn an Oscar nomination for her contribution as a songwriter on ‘Lift me up’, a soundtrack on Marvel’s ‘Black Panther: Wakanda Forever’ blockbuster release.
Landmark projects: President Buhari completed his state visit to Lagos by inaugurating the blue line rail project and the John Randle Centre for Yoruba Culture and History.
Security: The police service commission said it will not extend the tenure of senior police officers scheduled to retire in March, ahead of the general elections. The commission however noted that no vacuum would be created as “the police have capable men and women who should be encouraged to step into the vacancies that would be created by the existing officers.”
Constitutional amendment: After months of uncertainty, it appears state assemblies have rejected local government autonomy
Connectivity: Mafab, one of the three firms that won the bid for the 5G 3.5GHz Spectrum licences in November 2021, has finally rolled out its services in Abuja.
Climate desk
Aid: The European Union has pledged 102.5 million euros in humanitarian aid to help vulnerable communities in the Lake Chad basin, one of the most fragile regions in the world.
Carbon offsets: The African Carbon Markets Initiative wants to help African countries get climate finance, give more people access to clean energy, and help the economy grow in a sustainable way. But why do climate activists detest it?
Pakistan: The Asian country suffered a huge power cut following a breakdown in its national grid, leaving millions of people without electricity.
And that’s it for today. See you tomorrow.