Olu Allen
Let’s be honest: in Nigeria, even money can become a puzzle. Since the contentious currency redesign policy of February 2023, Nigerians have been navigating the surreal reality of two concurrent legal tenders, the new naira notes, struggling for circulation, and the old ones, clinging to stubborn viability.
Recall the rationale? The policy was launched as a masterstroke to curb inflation, reduce vote-buying, and bring hoarded cash into the formal banking system.
However, widespread reports from credible sources, including the Financial Times, suggested a parallel, political motive: to stifle the campaign machinery of a leading presidential candidate.
Today, the elections are a matter of record. Yet, the monetary ambiguity persists. The old N500 and N1000 notes were never fully retired, and the new ones never achieved a monopoly.
The Central Bank of Nigeria (CBN) has responded with deadline extensions and policy reviews, creating an impression of ad-hoc management rather than strategic foresight. The result? An economy dressed in mismatched socks, signaling disorder to all.
The consequences of this duality are tangible and corrosive:
- It Erodes Public Trust: At the market, the petrol station, and the POS terminal, silent confusion reigns. Which note is suspect? Which will be rejected? This daily dilemma undermines the very foundation of a currency, universal acceptance.
- It Cripples Monetary Policy: The core objective of the redesign, to gain better control over the money supply, has been defeated. With two sets of notes in circulation, the CBN’s ability to manage liquidity and inflation is significantly weakened, creating a “double trouble” scenario for our economy.
- It Tarnishes Our National Image: Consistency is the currency of investor confidence. The sight of a nation unable to execute a fundamental monetary transition signals systemic instability, deterring the foreign and local investment we urgently need.
- It Invites Financial Crime: Maintaining two legal templates for high-denomination notes is a gift to counterfeiters, complicating the security apparatus and putting ordinary citizens at risk.
The irony is as stark as it is embarrassing. The same Senate that screened out one of the most prominent governors who fought against the naira policy, on so-called “security grounds,” is the same body that previously confirmed a minister whose certificate from UNN was later questioned. It paints a picture of a system working at cross-purposes with itself.
This issue transcends political party lines; it is a fundamental test of our national competence. A country that cannot decisively manage its own legal tender cannot convincingly manage its destiny.
Therefore, the path forward demands clarity and conviction.
The Federal Government and the CBN must make a definitive choice, either fully re-embrace the old notes with a clear public explanation or execute, with unwavering resolve, the complete transition to the new ones.
A nation’s currency is more than paper; it is a symbol of its sovereignty and a mirror of its governance.
To restore the value of the naira, we must first restore the value of our word.
Let us resolve this confusion, not just for economic stability, but for the credibility of Nigeria itself.
Allen writes on public affairs, advocating for pragmatic and patriotic governance.
