Economy
FG, CBN’s Silence Create Confusion as Traders, Supermarkets, Others Reject Old Naira Notes
By Dipo Olowookere
The inability of the federal government and the Central Bank of Nigeria (CBN) to give a direction on the old Naira notes, which the apex bank earlier said would cease to be legal tender in the country from February 10, 2023, is creating confusion.
Business Post gathered that in Lagos, some traders, supermarkets, eateries and others now reject old Naira notes; N200, N500, and N1,000. They insist on collecting the redesigned currencies or being paid through the Point of Sale (POS) machine.
At one of the prominent eateries on the Egbeda-Idimu Road in the Egbeda area of Lagos, customers expressed bitterness over the refusal of the management of the facility to accept payment with the old notes on Friday night.
“I wanted to pay for the food I bought, but I was told they would not accept the old currency notes except the new ones. I had to use my debit card to pay through their POS machine,” one of the customers, Mr Aigbe James, told this reporter.
Recall that on Wednesday, the Supreme Court granted an interim injunction sought by the Governors of Kaduna, Kogi, and Zamfara States, to stop the implementation of the deadline of the currency swap policy of the central bank.
The Governors claimed that the policy was making residents of their states go through untold hardship as it was already causing protests in some parts of the country.
The apex court ruled that the status quo should be maintained until the matter is heard next Wednesday. This meant that the old and new notes should be allowed to co-exist until a final judgement is given.
On Friday, an emergency Council of State meeting was conveyed by President Muhammadu Buhari to discuss the policy and others, including the general elections starting in two weeks’ time.
Briefing newsmen after the meeting, the Attorney-General of the Federation and Minister of Justice, Mr Abubakar Malami, said the council threw its weight behind the policy but advised the CBN to print more banknotes or recirculate the old Naira notes to ease the cash crunch in the country. He also said the government was advised to obey the Supreme Court order, meaning the deadline will no longer be applicable.
But some banks sent messages to their customers yesterday, informing them that the deadline remained February 10.
“The old designs of N200, N500 and N1000 will no longer be accepted as legal tender after today, February 10, 2023. Deposit your old notes now at any of our branches,” one of the banks stated.
At the Ikeja area of Lagos State on Saturday, some traders at the popular Computer Village refused to accept the old notes.
It was a similar story in Maryland as a few supermarkets visited by this reporter rejected the old Naira notes, insisting on the new currency notes or card payments.
Those who spoke with this newspaper stressed that their refusal was because the government was yet to speak on the deadline and do not want to lose their money.
When reminded that the CBN had earlier said after the deadline, Nigerians could still deposit their old notes till February 17, the respondents said they just want to be on the safer side.
Meanwhile, some POS operators still accept the old banknotes, especially as they battle with getting the new notes.
“I still accept the old notes because I can still take them to the bank before February 17.
“Getting the new notes is very difficult, and we purchase the old notes at an exorbitant price. I pay between 10,000 and N17,000 to get N100,000 in old notes in this area; that is why we charge our customers almost N2,000 for N10,000.
“Some people think we are taking advantage of the situation to hike our charges, but it is not our fault. I am only buying [the old notes] because I don’t want to go out of business,” one of the operators in the Iyana Ipaja area of Lagos State, Ms Toyin Sokoya, informed Business Post.
By Modupe Gbadeyanka
The federal government has been asked by the Nigerian Bar Association (NBA) to suspend the implementation of the controversial tax laws.
In a reaction to the tax reform acts, the president of the group, Mr Afam Osigwe (SAN), the suspension of the laws would allow for a proper investigation into allegations of alterations in the gazetted and harmonised copies.
A member of the House of Representatives, Mr Abdussamad Dasuki, alleged that some parts of the laws passed by the parliament were different from the gazetted copy.
To address the issues raised, the NBA said it is “imperative that a comprehensive, open, and transparent investigation be conducted to clarify the circumstances surrounding the enactment of the laws and to restore public confidence in the legislative process.”
“Until these issues are fully examined and resolved, all plans for the implementation of the Tax Reform Acts should be immediately suspended,” the association declared.
It noted that the controversies “raise grave concerns about the integrity, transparency, and credibility of Nigeria’s legislative process.”
“These developments strike at the very heart of constitutional governance and call into question the procedural sanctity that must attend lawmaking in a democratic society,” it noted.
“Legal and policy uncertainty of this magnitude has far-reaching consequences. It unsettles the business environment, erodes investor confidence, and creates unpredictability for individuals, businesses, and institutions required to comply with the law. Such uncertainty is inimical to economic stability and should have no place in a system governed by the rule of law.
“Nigeria’s constitutional democracy demands that laws, especially those with profound economic and social implications, emerge from processes that are transparent, accountable, and beyond reproach. Anything short of this undermines public trust and weakens the foundation upon which lawful governance rests.
“We therefore call on all relevant authorities to act swiftly and responsibly in addressing this controversy, in the overriding interest of constitutional order, economic stability, and the preservation of the rule of law,” the organisation stated.
By Adedapo Adesanya
Demand for hot stocks, including MRS Oil Plc, buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.52 per cent on Tuesday, December 23.
The energy company was one of the three price gainers for the session as it chalked up N19.69 to sell at N216.59 per share versus the previous day’s value of N196.90 per share.
Further, FrieslandCampina Wamco Nigeria Plc gained N2.95 to close at N56.75 per unit versus N53.80 per unit and Golden Capital Plc appreciated by 84 Kobo to N9.29 per share from Monday’s N8.45 per share.
Consequently, the market capitalisation went up by N10.95 billion to N2.125 trillion from N2.125 trillion and the NASD Unlisted Security Index (NSI) rose by 18.31 points to 3,570.37 points from 3,552.06 points.
Yesterday, the NASD bourse recorded a price loser, the Central Securities Clearing System Plc (CSCS), which gave up 17 Kobo to close at N33.70 per unit against the previous trading value of N33.87 per unit.
The volume of securities traded at the session went down by 97.6 per cent to 297,902 units from the previous day’s 12.6 million units, the value of securities decreased by 98.5 per cent to N10.5 million from N713.6 million, and the number of deals remained flat at 32 deals.
By value, Infrastructure Credit Guarantee Company (InfraCredit) Plc ended as the most actively traded stock on a year-to-date basis with 5.8 billion units exchanged for N16.4 billion. This was followed by Okitipupa Plc, which traded 178.9 million units valued at N9.5 billion, and MRS Oil Plc with 36.1 million units worth N4.9 billion.
In terms of volume, also on a year-to-date basis, InfraCredit Plc led the chart with a turnover of 5.8 billion units traded for N16.4 billion. Industrial and General Insurance (IGI) Plc ranked second with 1.2 billion units sold for N420.7 million, while Impresit Bakolori Plc followed with the sale of 536.9 million units valued at N524.9 million.
By Dipo Olowookere
It was another bullish trading session for the Nigerian Exchange (NGX) Limited as it closed higher by 0.59 per cent on Tuesday.
The market further rallied due to continued interest in large and mid-cap stocks on the exchange by investors rebalancing their portfolios for the year-end.
Yesterday, Aluminium Extrusion sustained its upward trajectory after it further appreciated by 9.96 per cent to N14.90, as Austin Laz gained 9.81 per cent to close at N2.91, Custodian Investment improved by 9.69 per cent to N38.50, and First Holdco soared by 9.35 per cent to N50.30.
Conversely, Royal Exchange declined by 7.22 per cent to N1.80, Champion Breweries shrank by 6.57 per cent to N15.65, NASCON lost 5.36 per cent to trade at N105.05, Sovereign Trust Insurance depreciated by 5.28 per cent to N3.77, and Japaul went down by 4.51 per cent to N2.33.
At the close of business, 29 shares ended on the gainers’ table and 27 shares finished on the losers’ log, representing a positive market breadth index and bullish investor sentiment.
This raised the All-Share Index (ASI) by 895.06 points to 153,354.13 points from 152,459.07 points and lifted the market capitalisation by N579 billion to N97.772 trillion from the previous day’s N97.193 trillion.
VFD Group finished the day as the busiest stock after it recorded a turnover of 192.0 million units worth N2.1 billion, GTCO exchanged 63.5 million units valued at N5.6 billion, Access Holdings traded 49.8 million units for N1.0 billion, First Holdco sold 45.8 million units valued at N2.3 billion, and Secure Electronic Technology transacted 38.3 million units worth N28.4 million.
In all, market participants bought and sold 677.4 million units valued at N20.8 billion in 27,589 deals compared with the 451.5 million units worth N13.0 billion traded in 33,327 deals on Monday, showing an improvement in the trading volume and value by 50.03 per cent and 60.00 per cent apiece, and a shortfall in the number of deals by 17.22 per cent.
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