Nigeria president defends currency swap but orders old notes to remain in circulation

Nigeria's PresidentMuhammadu Buhari on Thursday (February 16) defended the currency swap that sparked unrest in the country, but orderedold, small denomination 200 naira notes to remain in circulation to ease the scarcity of cash. Addressing citizens, Buhari described the naira policya "positive departure from the past" and said it represented a "bold legacy step" towards free and fair elections by helping to curb vote buying, the news agency AFP reported.

However, Buhari said he was moved by the hardships and pains that people faced over the cash crunch."To further ease the supply pressures, particularly to our citizens, I have given approval to the CBN that the old 200 bank notes be released back into circulation," The president added.

The naira policyintroduced redesigned 200, 500 and 1,000 naira notes. Now, theold 200 naira notes will circulate as legal tender till April 10 along with new notes. Buhari also told citizens on Thursday that the old500 and 1,000 naira notes should be deposited with the central bank.

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Tensions flare in Nigeria amid cash crunch.

Violent protests erupted in Nigeria over the scarcity of cash since the central bank started to swap old bills of the local naira currency for new ones, which caused a shortfall of banknotes. On Wednesday, protesters attacked Automated Teller Machines (ATM) and blocked roads in three cities.

At present, banks in the country have limited access to cash and ATM withdrawals due to the scarcity of new notes. The AFP report said that some businesses are refusing to accept the old notes causing huge queues, angering customers and disrupting businesses.

In Delta State, the police said that unguided youths in the name of protests set two banks and two vehicles on fire. Taking to Twitter, state police spokesperson Bright Edafe that the cops have arrested nine suspects so far. On Twitter, the Channels news station shared a video of men burning tyres in the streets on the outskirts of the city of Warri.

In Edo State, governor spokesperson Crusoe Osagie said on Wednesday that protests broke out in Benin City after police stopped "hoodlums" from attacking a local office of the central bank. "The hoodlums then started attacking and vandalising banks. They also blocked roads and forced businesses to close," Osagie said.

This unrest in Nigeria comes days before the country holds elections on February 25 to decide on a successor to President Muhammadu Buhari.

On Wednesday, Crusoe Osagie blamed the violent protests on politically motivated actions by the ruling All Progressives Congress (APC). "Although the people are dissatisfied with the naira scarcity, the APC capitalized on the discontentment and instigated hoodlums and thugs to cause violence in the city," he said, AFP reported. The APC and the opposition Peoples Democratic Party (PDP) have repeatedly traded accusations over cash shortages during campaigning for the upcoming election.

There were no immediate reports of deaths or injuries during Wednesday's unrest. However, last week, two people were killed in clashes.

(With inputs from agencies)

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