Finders keepers
There’s money in the country but Nigerians might be stopping it from circulating.
Good morning to all the Big Brains except Band A customers who can collect their morning greetings from the Nigerian Electricity Regulatory Commission. Since the band categorisations were put in place, my street has been ‘bandless’. This means we’ve been running on 2 hours of electricity daily. NERC clearly has favourites and I’m not one of them.
PSA: Find our favourite answer from this week’s big question at the bottom of the newsletter. Speaking of finding things, there are speculations that President Tinubu’s location cannot be confirmed at the moment. The presidency has also been really quiet and if no new information comes up today, the conspiracy theory may start rolling in. We’ll keep you updated as always.
– Margaret
Word count: ~1000
Reading time: ~ 2 mins
Let’s get into today’s edition:
Nigeria's cash in circulation reaches ₦3.87 trillion in Q1 as money outside banks rises
Federal Government is re-evaluating a law that criminalises suicide attempts
Commissioner says 80% of buildings in Ibeju-Lekki lack government approval
NERC Approves Tariff Reduction For Band A Customers
The Big Deal
Nigeria's cash in circulation reaches ₦3.87 trillion in Q1 as money outside banks rises
The currency available to conduct transactions in Nigeria rose from ₦3.69 trillion to ₦3.87 trillion at the end of the first quarter of 2024. Unfortunately, that’s not the only figure that is on the rise. The scarcity of naira notes is also rising as money outside the banking system surges to ₦3.63 trillion. In plain English, this means that Nigerians are hoarding naira notes.
Why is the math not mathing?
The Central Bank of Nigeria (CBN) introduced new ₦200, ₦500, and ₦1,000 naira banknotes on October 26, 2022, stating that the old versions of the redesigned notes will lose their legal status by January 31, 2023. This sent Nigerians into panic mode. If you were in Nigeria at the time, you’ll recall that there were longer queues at banks and cash dispensing machines. Point of Sale (POS) operators also started charging as high as ₦2,000 for ₦5,000 in some parts of Lagos. The circulation of the new currency was so low that it caused a major shortage of cash. Only the “luckiest” Nigerians had access to the currency and they spent it with the consciousness of how hard naira was to come by. It became a “finders keepers” kind of situation, leading to millions of Nigerians hoarding as much cash as they could.
The cash shortage eventually eased up when the legal status of the old currency was extended indefinitely. But it’s either Nigerians are paranoid that the extension could end soon or they’ve just formed a habit of hoarding new currency. The surge in cash hoarding could also be a result of the age-long distrust many Nigerians have in the banking system, preferring to keep their money where they can see it. While the redesign policy has not successfully reached its goals of “easing inflationary pressures and enhancing cashless policy”, it’s clear as day that Nigerians have not forgotten the challenges the cash shortage caused.
Why does this matter?
Last week, Muhammad Abdullahi, a member of the CBN's Monetary Policy Committee, mentioned that too much cash outside of banks is one of the factors causing inflation in the country. According to him, the combined factor of exchange rate depreciation and currency outside banks will affect inflationary pressure. If the situation isn’t properly handled, we may soon have another round of cash shortage and heightened inflation on our hands.
Federal Government to re-evaluate law that criminalises suicide attempts
Yesterday, we mentioned that Nigeria got rid of one of its most sexist laws, today we have updates on another law that just has to go. Lateef Fagbemi, the Attorney-General of the Federation and Minister of Justice has stated that the government will reconsider the law that penalises suicide attempts in the country.
Section 327 of the Criminal Code states that any person who attempts to kill himself is guilty of a misdemeanor and is liable to imprisonment for one year. The law has always been a sensitive subject for Nigerians given that the country isn’t exactly known for providing easy access to mental healthcare. This law exposes people who battle with mental conditions to imprisonment instead of therapy or other means of treatment. As backward as it sounds, Nigeria is still one of 23 countries that consider attempted suicide a crime.
But this could change…
Fagbemi said that President Bola Tinubu's administration prioritises health. He mentioned that he thinks the law should be reviewed, especially when offenders are found to be mentally unwell and he agrees that instead of punishment, they need compassion, treatment, and care.
Fagbemi plans to discuss the matter with the Body of Attorneys General and address mental health issues with his colleagues at the Federal Ministry of Health.
Commissioner says 80% of buildings in Ibeju-Lekki lack government approval
If you or anybody you know lives in the Ibeju-Lekki and Epe axis of Lagos state, we’ve got news that might hit a nerve or two. Lagos Commissioner for Physical Planning and Urban Development, Oluyinka Olumide, says that 80% of buildings in the Ibeju Lekki-Epe area are not approved by the government.
In a chat with reporters, Olumide explained that even though there are strict rules for getting government approval, property developers and owners bypass the proper procedures.
He said most of the lands in the axis are zoned for agriculture, but people buy them for other uses without proper permits.
What does this mean for the residents?
Lagos state has been going hard at the demolition of buildings across the state, including the Maryland buildings that were demolished “to avoid the flooding of the whole of the Mainland” and the demolishment of some properties on the Landmark beach last Tuesday to make space for the Federal Government’s Lagos-Calabar highway project, putting a sudden end to the operations of many small businesses. While there is no official announcement that suggests that the buildings in the affected area will be demolished, there’s a possibility that this could happen in the future. Nigerians argue that this new development speaks poorly of the Lagos State Government and that the buildings involved should not be demolished for their incompetence.
Homelessness Grips Owners of Demolished Buildings in Maryland
The government justified the demolition by claiming that the drainage right of way was reserved since 1974 and that they informed residents before taking down the buildings. A 1974 reservation that led to the demolition of many buildings in 2024 suggests that the owners of buildings in Ibeju Lekki and Epe may suffer the same fate in the future.
NERC Approves Tariff Reduction For Band A Customers
Band A customers are never beating the “NEPA’s favourite” allegations. The Nigerian Electricity Regulatory Commission (NERC) has approved a price reduction for all Band A customers. They are now to pay ₦206.80 per kilowatt-hour instead of ₦225/kWh. In a statement released yesterday, the electricity market operator explained that this change is a result of the increase in the value of the naira in the official exchange market. Because of this, electricity distribution companies like Ikeja Electric (IE), Eko Electricity Distribution Company (EKEDC), and Abuja Electricity Distribution Company (AEDC) have started lowering tariffs for Band A customers. They also mentioned that the commitment to providing 20-24 hours of electricity per day is still valid. At this point, “NEPA’s favourites” doesn’t cut it anymore’ Band A customers are God’s favourites.
This Week’s Big Question
“If money was not a problem, what would you spend the rest of your life doing?”’
Stephanie’s response: “I'd spend the rest of my life teaching children with special needs. I currently work in tech but it's something I still want to do when I've made a bit more money and can get the necessary qualifications :)”
You can also share your response here and if it’s as interesting as Stephanie’s response, we’ll feature it in the next edition.
The Big Picks
NY Judge Threatens Trump With Jail For Gag Order Violations: The judge overseeing Donald Trump's criminal trial in New York found him in contempt for breaking a gag order and warned that he would be jailed if he breaks the order again.
Everything to Know About the 2024 Met Gala: Theme, Hosts, and More: It’s MET Gala season and all I plan to do today is judge what your faves wore and decide who the “worst-dressed” celebrity of the year is even if the dress in question costs more than everything I own. I hope you don’t miss out on the excitement.
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