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Minister of Finance, Budget and National Planning, Zainab Ahmed on Thursday, said the Federal government and President Muhammadu Buhari are deeply concerned over the ongoing suffering of Nigerians caused by the Naira redesign and currency swap policy.
Ahmed who stated this while fielding questions from Journalists at the 65th Media briefing organized by the Presidential Media team, said the President shares in the pains being experienced by Nigerians in accessing the new Naira notes, but added that “ it is a temporary pain which will fizzle out very soon”
The Finance Minister who likened the current situation being experienced by Nigerians to a “patient having a wound or deep sore” stated that “the patient must submit to an excruciating pain while undergoing iodine treatments.”
She said government is however pleased that a sizeable old funds have been mopped back into the banking system, which will in turn give the regulatory agencies control over the nation’s currencies.
This is coming amidst viral trending videos showing how frustrated customers are facing difficulties in accessing their money trapped in banks
Asked whether the government is actually worried over the development in the financial sector, the Minister said,” of course we are worried, we are not happy that citizens have to queue and struggle to get their cash but this is a temporary situation.
“Let me give you an analogy, this situation can be compared to a patient having a sore and while treating the sore, you must apply some iodine or spirit which is usually very painful.
“It is something that needs to be done at this time. But the Central Bank has been responsive in terms of providing some extension and also some explanation that before the closing date, it is not all over. There is still opportunities for citizens as provided for under Section 20(3) of CBN Act, for people to take their old currency to the CBN for redemption”
” Mr President is not happy that citizens are sufferring but come the closing date which the Central Bank of Nigeria has given, it will not all be over as a window still exist for people to return their old notes.
“There is also the positive side to it, which is that a lot of currency has been mopped up back into the system”.bit has achieved a big level of success, the only thing is the pain, which is regrettable and which is transient and temporary”
The Minister also expressed surprise over the latest Moody’s report on Nigeria, which down graded the long-term issuer rating of the Government of Nigeria to Caa1 from B3, and change in the outlook to stable, on January 27th, 2023.
“I want to also say that the Moody’s report or downgrade came as a surprise to us. Because we had presented all of the works that we have been doing in stabilizing the economy.
“But they are external rating agencies that don’t have the real understanding of what has happened at the domestic environment”
The international rating agency, Moody’s Investors Service, also downgraded nine Nigerian banks, following its downward review of Nigeria’s rating last week.
The downgraded banks include Access Bank Plc, Zenith Bank Plc, First Bank of Nigeria Limited, United Bank for Africa Plc, Guaranty Trust Bank Limited, Union Bank of Nigeria Plc, Fidelity Bank Plc, First City Monument Bank Limited, and Sterling Bank Plc.
She however, urged Nigerians to look forward to the S&P rating due for release in a few days, adding that “ it is expected to present a better outlook for Nigeria”
Details later.