Currency swap extension: Nigeria may lose N100trn – CPPE

The Chief Executive Officer, CEO, of the Center For The Promotion Of Public Enterprise (CPP),, Muda Yusuf, has warned of economic consequences of allowing only 10 days extension for the Naira swap by the Central Bank of Nigeria (CBN).

Yusuf, said that “extension allowance is grossly inadequate to make up for the glaring shortcomings of the apex bank in this process.”

His reaction stem from the extension announced by the CBN, to February 10, following public outcry.

The CBN Governor, Godwin Emefiele, announced the extension in a statement signed on Sunday, January 29, 2023.

This comes after Nigerians have called for an extension of the deadline, sighting scarcity of the new notes in circulation.

The CBN Governor had earlier insisted that there won’t be any extension to the policy, saying kidnapping and ransom-taking have reduced since the three banknotes were redesigned.

He also said the time given for the swap of the old naira notes with new ones were enough for Nigerians to go to commercial banks and get new notes.

The Centre said it is concerned that the failure to give adequate time for the currency swap could put N100 trillion component of the national GDP at risk.

Yusuf, noted that two critical sectors are particularly vulnerable and they include Trade and Commerce; and Agriculture. According to him, The crippling of business transactions at the distributive trade end amid the currency swap crisis would not only undermine the trade and agricultural sectors but would have a knock-on effect on manufacturing value chain and the services sectors.

This is because whatever is produced have to sold and the trading end of the chain has been greatly disrupted by this currency swap crisis.