There are strong indications that the scarcity of the new naira notes may disrupt the election, which is just 16 days away.
This was said by Mahmood Yakubu, Chairman of the Independent National Electoral Commission, during a meeting on Tuesday with Godwin Emefiele, Governor of the Central Bank, at the CBN’s Abuja headquarters.
He clarified that numerous INEC service providers lacked bank accounts.
As a result, he sought the support of the apex bank in order to address the issue with the CBN’s cash withdrawal policy, which had engulfed the nation.
Last year, the apex bank set weekly cash withdrawal limits for individuals and businesses at N5 million and N500,000, respectively.
Additionally, in December of last year, it implemented the currency redesign policy, which saw the issuance of brand-new N1000, N500, and N200 notes.
Yakubu, however, expressed his concern to the head of the CBN, stating that service providers required full or partial payment and expressing concerns regarding withdrawal limits.
“The Nigerian election is a huge and complicated one,” he stated. It necessitates the utilization of essential services, and in accordance with exchange regulations, service providers typically receive payment electronically to their accounts.
However, because services are provided, essential areas like transportation and human support services must be immediately listed, either partially or completely.
Additionally, unforeseen circumstances may arise that necessitate immediate cash payments. Unbanked are some of the essential service providers. We have collaborated with the Central Bank of Nigeria and commercial banks over time to seamlessly pay for these services during general, off-cycle, and by-election elections.
“The commission has migrated all of its national and state accounts to the CBN over the years, and this arrangement has worked without affecting our activities.”
“We consider this meeting important in addressing some of our areas of concern with just 17 days to the 2023 general elections in view of the recent policy involving the redesigning of some denominations of our currencies and the limit on cash withdrawals and availability.
“We are confident that a component of this meeting will lessen some of our service providers’ anxiety.” We are determined to make the general election in 2023 one of Nigeria’s best, but we cannot accomplish this on our own. As a result, the commission is mobilizing every important national institution to ensure the election’s success.
The governor of the Central Bank of Nigeria (CBN) stated that the apex bank would not permit itself to be used to hinder the efforts of the electoral body and provided assurances that cash would be made available for the payment of service providers.
Emefiele stated that the apex bank would support the 2023 election in every way possible and that it has never failed Nigerians.
He said, “Now, aside from the issue of the election materials’ storage and transportation from CBN locations to your own specific or designated locations; Where do you intend to place these materials?
I am aware that when I visited your office just a few months ago, you brought up the question of how you could acquire foreign currency to import your BVAS and other necessary election materials. I also swear by the provision of foreign currency for that purpose.
“I stand here or sit here to confirm that there is not a single dollar owed today. All of the funds required to import those items have been provided, and those imports have taken place.
Therefore, it all forms part of our commitment.
The issue of payment as well as the logistics for individuals who will be transporting election materials, even to visit wards; The assurance I give to you is that the INEC project cannot fail because we viewed it as a top or urgent national task. The central bank would not allow itself to be used or seen as an agent that prevented a favorable election outcome.
Emefiele stated that the CBN would provide the financial backing and electoral body necessary to conduct the election.
