CBN Promises INEC Not To Disrupt Election With Naira Scarcity

The Central Bank of Nigeria (CBN) has received assurances from the Independent National Electoral Commission (INEC) that the CBN will not take any actions that will undermine the success of the general elections in 2023.

The promise was made by the governor of the Central Bank of Nigeria, Mr Godwin Emefiele, on February 7 at a meeting with Prof. Mahmood Yakubu, the INEC chairman, in Prof. Yakubu’s office in Abuja.

The head of INEC had expressed concerns at the meeting that the impact of the naira redesign policy would compromise the smooth running of the elections. Yakubu urged concessions regarding the naira redesign policy, with particular reference to the restrictions on cash withdrawals and the necessity to make some cash available for some peculiarities that cannot be satisfied with the electronic transfer of funds.

He claims that some service providers, particularly transporters, want cash payments and that, in addition, past experience has shown that emergencies can happen on election day, necessitating the usage of cash by the commission.

“I am encouraged by the continued willingness of the apex bank to support the commission’s determination to deliver credible elections on February 25 and March 11, 2023. Particularly, the facilitation of activities necessary for the success of the election, in an area where the CBN has exclusive responsibility.

“Nigerian election is a huge and complex undertaking that requires the engagement of critical services and in line with the provisions of the extant laws and regulations, service providers are generally paid by means of electronic transfer to the accounts.

“However, there are equally critical areas, such as transportation and human support services that have to be immediately remunerated, either partially or in full before services are rendered.

“In addition, emergencies may arise requiring immediate cash payments. Some of the critical service providers are unbanked. Over the years we have worked with the CBN and commercial banks to pay for such services seamlessly during general elections, as well as off-cycle andbye-electionss.

“Over the years, the commission has also migrated all its accounts at national and state level to the CBN. And this arrangement has worked without encumbrances to our activities. In view of the recent policy, involving in the redesign of some denominations of our national currency and the limits placed on cash withdrawals and availability. We consider this meeting important in addressing some of the areas of concern with just 17 days to the 2023 general election.

“We are confident that arising from this meeting, we can assuage the anxiety expressed by some of our service providers who are determined to make the 2023 general election one of the best organised elections in Nigeria, but we cannot do it alone. That is why the commission is mobilising every critical national institution for the success of the election. This meeting is part of this effort,” Yakubu said.

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Emefiele responded by promising to make sure the CBN is not perceived as a tool being used to scuttle the success of the upcoming general election.

“The relationship between the CBN dates back to even before I became the governor and that relationship, I will say borders purely on trust and confidence. We also appreciate and truly do appreciate the fact the INEC supported by the Nigerian populace have the trust and confidence in the ability of the central bank in playing the roles that we have played for you so far to ensure that our elections hold without any hitches.

“We are happy that in the course of this relationship, we have not disappointed you and that is the reason you have called me again this time. Now, just aside from the issue of storage of election materials together with transportation of election materials from CBN locations to your own specific or designated locations.

“I will make sure that I do not allow ourselves as central bank to be seen as an agent that frustrated positive outcome of the elections,” Emefiele said.