President Muhammadu Buhari has said that the Naira redesign has helped the country, saying about N2.1 trillion old naira notes have been retrieved.
Buhari, who made this disclosure during a televised nationwide broadcast on Thursday, said the figure represented 80 percent of cash outside the banking system before the implementation of the naira redesign policy.
He said the huge volume of currency outside banks had proven to be practically unavailable for economic activities, thereby retarding the attainment of potential economic growth.
The President said, “Notwithstanding the initial setbacks experienced, the evaluation and feedback mechanism set up has revealed that gains have emerged from the policy initiative.
“I have been reliably informed that since the commencement of this programme, about N2.1 trillion out of the banknotes previously held outside the banking system, had been successfully retrieved. This represents about 80% of such funds”.
With the retrieval of N2.1 trillion, the president said there are expectations that there would be a collapse of illegal economic activities which would help to stem corruption and acquisition of money through illegal ways.
He also said there would be exchange rate stability, availability of easy loans and lowering of interest rates.
Buhari said, “Reduction of broad money supply leading to a deceleration of the velocity of money in the economy which should result in less pressures on domestic prices,
“Lowering of inflation as a result of the accompanying decline in money supply that will slow the pace of inflation.
“Greater visibility and transparency of our financial actions translating to efficient enforcement of our anti- money laundering legislations.”
