Human Rights Writers Association of Nigeria (HURIWA) has called on Federal Government to investigate the Central Bank of Nigeria over prolonged artificial scarcity of naira notes.

The group urged President Bola Ahmed Tinubu to order the Department of State Services (DSS) and Economic and Financial Crimes Commission (EFCC) to probe suspected economic sabotage, which has adversely affected businesses all around the country.

HURIWA said that since the scarcity of the national currency resurfaced around the last quarter of last year, the CBN has failed to address it, even when it is statutorily responsible for the smooth circulation of the notes.

According to the group, CBN has failed by virtue of her legal functions to issue legal tender currency in Nigeria; maintain external reserves to safeguard international value of the legal tender; promote a sound financial system in Nigeria, and act as banker and provide economic and financial advice to the Federal Government.

HURIWA, in a statement by the National Coordinator, Emmanuel Onwubiko, regretted that the CBN had become a toothless bulldog and allowed forces known to the hierarchy of the CBN to continue to sabotage the national economy by manipulating the circulation of insufficient volumes of the naira in the country, thereby frustrating the economic activities of a broad spectrum of Nigerians.

The rights group noted the fact that since the CBN had since identified the sources of the scarcity as contained in its press statement, it is shocking that over a month after the statement, the CBN lacks the political will to crush those it identified as conspirators in the scarcity of the Naira.

HURIWA said: “The overwhelming opinions of those who should know, are that the solution of cash scarcity can’t happen without the Central Bank of Nigeria implementing far-reaching measures in line with her mandate to boost the volumes of cash in circulation in Nigeria and resolve the lingering scarcity of Naira in the country,” the group said.

depure:
Put people who is capable no they won't....

Pooldrowning:
Emiefiele should root in jail.


He started all this scarcity of cash.

Nigeria is a very anyhow Country honestly.


Nobody public official gets to be punished or help accountable for his currupt acts

mrvitalis:
I ask is economics taught everyone in Nigeria till SS3 the way it's done in SS/SE states
Because some things people say shows they lack basic economics knowledge at all


Naira has lost value about 100% value in the last 1 year

So demand for naira would grow by 100% since price of most goods have gone up

If u needed 10000 to go to market ro shop for weekend now u need 20000

Since most transactions still happens via cash
There would be more demand for cash

And I'm sure CBN has not increased cash in circulation by 100% ( because we are too broke to print that amount)

So that's explains the scarcity... This is basic economics

Pooldrowning:
Emiefiele should root in jail.


He started all this scarcity of cash.

Nigeria is a very anyhow Country honestly.


Nobody public official gets to be punished or help accountable for his currupt acts

mrvitalis:
I ask is economics taught everyone in Nigeria till SS3 the way it's done in SS/SE states
Because some things people say shows they lack basic economics knowledge at all


Naira has lost value about 100% value in the last 1 year

So demand for naira would grow by 100% since price of most goods have gone up

If u needed 10000 to go to market ro shop for weekend now u need 20000

Since most transactions still happens via cash
There would be more demand for cash

And I'm sure CBN has not increased cash in circulation by 100% ( because we are too broke to print that amount)

So that's explains the scarcity... This is basic economics

mrvitalis:
I ask is economics taught everyone in Nigeria till SS3 the way it's done in SS/SE states
Because some things people say shows they lack basic economics knowledge at all


Naira has lost value about 100% value in the last 1 year

So demand for naira would grow by 100% since price of most goods have gone up

If u needed 10000 to go to market ro shop for weekend now u need 20000

Since most transactions still happens via cash
There would be more demand for cash

And I'm sure CBN has not increased cash in circulation by 100% ( because we are too broke to print that amount)

So that's explains the scarcity... This is basic economics

COMPAQ:


Quick to abuse others, but even your own knowledge of economics can be challenged. Even if you need more cash to buy the same things, should that change the amount of money in circulation? Before naira devalued, i carry like N10k in my wallet. Now that naira has devalued, I still carry N10k in my wallet, because my wallet has limited space and my income hasn't even changed. Do people just hold cash for no reason? Isn't the purpose of raw cash to spend it and keep it flowing in the economy?

Another theory is that CBN has mopped up a lot of cash to fight inflation, increase electronic transactions and therefore increase the revenue from Stamp Duty N50! If so, its a smart move and something i would have done.

mrvitalis:
[b]
[b]
What exactly are you even talked about

I'm explanation was simple yet you messed the whole thing up and mixed the point


Naira as lost value, to buy same goods u need more naira, since most transactions occurs with physical cash there would be demand for more n more naira note

CBN can't print more note to keep up because we are broke

Increased demand, little increase is supply = scarcity... Basic economics

What on earth is difficult to get here

mrvitalis:
I ask is economics taught everyone in Nigeria till SS3 the way it's done in SS/SE states
Because some things people say shows they lack basic economics knowledge at all


Naira has lost value about 100% value in the last 1 year

So demand for naira would grow by 100% since price of most goods have gone up

If u needed 10000 to go to market ro shop for weekend now u need 20000

Since most transactions still happens via cash
There would be more demand for cash

And I'm sure CBN has not increased cash in circulation by 100% ( because we are too broke to print that amount)

So that's explains the scarcity... This is basic economics

COMPAQ:


Because you are the smartest person in the room abi. Na only you go school? Or you are the only student of economics abi? If all economists or business analysts thought the same way, there would never be differing opinions in the media. Stop sounding like you know the perfect reason. Can someone withdraw more money than he has in his bank account?

We have always said that there is too much money in circulation in Nigeria which is fueling inflation and makes economic management via fiscal policy difficult. So if CBN reduces money in circulation, have the done a bad thing? Besides more and more people are now saying they will accept transfer, which helps with what i said before and keeps more money in the banking system. And it has the dual purpose of increasing revenues through stamp duty.

There are many pro's and few cons from an economic perspective.

Be there talking basic secondary school 'increased demand/reduced supply = scarcity' economics, when others are talking Msc econometrics and micro/macro economics!!

Yemmysworld91:

Thank God the Huriwa spokesman is probably from the SE/SS. Cos you made a valid point but did it in a demeaning manner to other regions
Probably they didn't teach him basic economics in the SE/SS where he comes from . Shalom

mrvitalis:

Bro when they say money in circulation they don't mean physical cash... Sir , na w

They mean disposable income and you done reduce cash by reducing physical cash you do that by

Increasing interest rate above inflation rate
Offering bonds and treasury bills with good interest

It's a way of making people keep their money in the bank or locked up for longer period to reduce their purchasing power


Again who taught you economics

COMPAQ:


Physical cash is a COMPONENT of money in circulation, otherwise known as money supply...JEEZ!!!

https://www.investopedia.com/terms/c/currency-in-circulation.asp


And yes you can reduce money supply by reducing physical cash and also increasing interest rates as you have said. it can also be reduced by increasing bank liquidity ratio and cash reserve requirement!

Should I school you more!?

read and learn!!

https://www.investopedia.com/terms/m/m1.asp

https://www.investopedia.com/terms/m/m2.asp

mrvitalis:

Lmaooo bros read what you posted again

You want to school me? Socialists like you Lmaooo

The main aspect of reducing money in circulation is by increasing interest rate, bond and treasury bill

Limiting cash is lesser extent

Let's asume you are right by saying CBN reduced cash to reduce money in circulation

With our very low interest rate compare to inflation, low intrest in bonds and treasury bills is that not counter productive?

This is basic economics oga