President Muhammadu Buhari has boasted that his new monetary policy, which redesigned the N200, N500 and N1000 banknotes; and which has led to a nationwide cash crunch, has curbed money politics ahead of this year’s general elections.
In a nationwide broadcast on the morning of February 16, 2023, President Buhari said: “Fellow citizens, on the 25th of February, 2023 the nation would be electing a new President and National Assembly members. I am aware that this new monetary policy has also contributed immensely to the minimization of the influence of money in politics.
“This is a positive departure from the past and represents a bold legacy step by this administration, towards laying a strong foundation for free and fair elections.
“I urge every citizen therefore, to go out to vote for their candidates of choice without fear, because security shall be provided and your vote shall count.”
The president also added that his Naira redesign policy was aimed at reducing the amount of money in circulation in order to curb inflation.
“Notwithstanding the initial setbacks experienced, the evaluation and feedback mechanism set up has revealed that gains have emerged from the policy initiative.
“Reduction of broad money supply leading to a deceleration of the velocity of money in the economy which should result in less pressures on domestic prices;
“Lowering of Inflation as a result of the accompanying decline in money supply that will slow the pace of inflation;
“Collapse of Illegal Economic Activities which would help to stem corruption and acquisition of money through illegal ways.”
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According to the president, “In 2015 when this administration commenced its first term, Currency-in-Circulation was only N1.4trillion.
“The proportion of currency outside banks grew from 78% in 2015 to 85% in 2022. As of October 2022, therefore, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking System while N2.7 trillion remained permanently outside the system; thereby distorting the financial policy and efficient management of inflation.
“I have been reliably informed that since the commencement of this program, about N2.1 trillion out of the banknotes previously held outside the banking system, had been successfully retrieved.”