Naira crunch: Normalcy has been restored in Mile 12 neighborhood – Lagos Police

After early Friday agitation over the currency shortage, normalcy has been restored in Lagos State’s Mile 12 neighborhood.

According to a video posted on social media, gunfire were heard in the neighborhood, and many people ran for cover.

The Lagos-Ikorodu Expressway was taken over by some alleged thugs in the area, Mile 12, Ojota, and Ketu, who also turned on some passengers by hitting them.

However, Benjamin Hundeyin, a spokesman for the Lagos State Police Command, claimed that after the event, things were back to normal.

“Free movement of vehicles and people fully restored. Our officers and men are still on the ground to prevent any breakdown of law and order,” he tweeted on his handle. “If you see something, say something.”

The protest came hours after President Muhammadu Buhari said while the old N1,000 and N500 are no longer legal tenders, the N200 banknotes will still be in use until April 10, 2023.

He made the comment in a nationwide broadcast on Thursday where he also empathized with Nigerians over the crisis created by the naira swap policy of the Federal Government.

“To further ease the supply pressure, particularly on our citizens, I have given approval to the CBN that the old N200 bank notes be released back into circulation and it should also be allowed to circulate as legal tender with the new N200, N500, and N1,000 banknotes for 60 days from February 10, 2023, to April 10, 2023, when the old N200 note ceases to be legal tender,” he said.

Buhari lamented the volume of banknotes outside the banking system.

“The proportion of currency outside banks grew from 78%in 2015 to 85% in 2022. As of October 2022, therefore, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking System while N2.7 trillion remained permanently outside the system; thereby distorting the financial policy and efficient management of inflation,” the President said.

“The huge volume of Bank Notes outside the banking system has proven to be practically unavailable for economic activities and by implication, retard the attainment of potential economic growth.”

 

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