Deputy Governor of Lagos State, Dr Obafemi Hamzat, voiced his displeasure with the cash swap policy of the Central Bank of Nigeria (CBN) in an interview with Television Continental (TVC) on Monday.
Hamzat called the policy “ridiculous”, reflecting Nigerians’ growing dissatisfaction with how the apex bank is overseeing the Naira redesign roll-out.
Despite the Central Bank’s claim that the amount of Naira notes in circulation has doubled in the last seven years, Hamzat says the proportion of notes in circulation compares favourably to most industrial nations.
Hamzat added that there is only about N51 trillion in bank accounts across Nigeria and less than N3.5 trillion outside the banking system, per data from the Central Bank of Nigeria.
At 5%, the deputy governor said, the number of notes in circulation remains appreciable despite the recent increase and should not be used to justify constrictive policies like the Naira redesign.
“The percentage of currency in circulation compared to total money around the world is 20% in Japan, 12% in the United States, 6% in the United Kingdom and 5% in Nigeria,” he said. “So, to say that we have too much money in circulation is ridiculous.”
The Lagos state government is one of the few state governments considering joining the lawsuit against the federal government over the continued cash shortage.
Gov. Sanwo-Olu has already ordered the arrest of anyone who refuses to accept the old Naira notes as legal tender in the state, following reports of Nigerians refusing to transact with the old notes last week.