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Nigerian President Muhammadu Buhari called for an end to violent protests over the cash shortage in the country that has disrupted bank operations, businesses, and civic life. He said that the country’s redesigned currency would bolster the upcoming presidential election
Many Nigerians have failed to withdraw their money and turned violent when they could not withdraw them to meet day-to-day expenses. To pacify those demonstrators, Buhari told them the expected gains from swapping the old naira notes with newly designed ones. He stressed that it would help curb surging inflation and importantly, reduce the influence of money in the Feb- 25 vote to elect his successor. He added that it was a positive departure from the past and a bold step by the administration toward laying a strong foundation for free and fair elections. Buhari is not contesting this election, having completed his mandated two terms as president.
However, Nigerians have been unable to access cash in recent weeks. The central bank started swapping currency notes of higher denominations of 1,000 naira (US$2.16), 500 naira (US$1.08), and 200 naira (43 U.S. cents) with redesigned ones. The move, policymakers claim, would help make Africa’s largest economy cashless and more inclusive. But citizens do not toe in line with that reasoning. Those who have deposited old money in the banks are unable to draw the new currency to meet their day-to-day needs. The Nigerian economy is a cash-driven one like most developing economies. Only 45 percent of the citizens of the most populated country in Africa have bank accounts.
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Weeklong protests against the cash shortage crisis further escalated in Nigeria’s southern states. Two banks were set ablaze and major roads were blocked. Edo state had seen violence more than any other province. Police fired tear gas at demonstrators as they attacked bank facilities. Many businesses also have been forced to close. There are allegations that some of the bank officials are hoarding new currency notes and are selling them in the black market, thereby making a killing from the present dilemma. Allegations that the present crisis is manipulated to gain political advantage by some presidential aspirants are gaining ground in chaotic conditions.
