While many people do not seem to see any good in the new naira policy announced last year, President Mohammadu Buhari said, N2.1 trillion that was previously out side the banking system has been retrieved.
He is confident that, the feat will ensure inflation slows down, while exchange rate stabilizes in no distant time.
“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.”, said President Buhari in his early morning broadcast yesterday.
He added that, “notwithstanding the initial setbacks experienced, the evaluation and feedback mechanism set up has revealed that gains have emerged from the policy initiative”.
He recalled that the proportion of currency outside banks grew from 78 per cent in 2015 to 85 per cent 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”, he said.
He explained that the huge volume of bank notes outside the banking system has proven to be practically unavailable for economic activities and by implication, retard the attainment of potential economic growth; conomic growth projections make it imperative for government to aim at expanding financial inclusion in the country by reducing the number of the unbanked population; and given the prevailing security situation across the country, which keeps improving, it also becomes compelling for government to deepen its continuing support for security agencies to successfully combat banditry and ransom-taking in Nigeria
