When Old Naira Notes Recirculation Re-Ignites Banditry, Kidnapping
By MUKHTAR Ya’u Madobi
After a lull, it is now resurging. The diabolical activities of banditry and kidnapping for ransom have once more resumed, across the Nigerian terrain.
The worrisome development is not unconnected to the recirculation of earlier moped up old naira notes back to the public to cushion the hardship induced by the artificial scarcity of cash, while also giving back life to several businesses.
Recall that on October 22, the Central Bank of Nigeria, CBN, disclosed its decision to redesign and circulate a new series of three banknotes out of the existing eight. The affected notes included N200, N500 and N1000 denominations.The CBN management noted that the decision was reached due to persisting concerns with the management of currency in circulation — particularly those outside the banking system and to promote financial inclusion among others.
While explaining the reasons for this unusual and hasty decision, the CBN Governor, Godwin Emefiele cited security challenges being faced by the country as one of the major justification for executing this task after getting approval from the Chief of the Armed Forces of Nigeria, President Muhammadu Buhari.
In view of the prevailing level of security situation in the country, the CBN is convinced that the incidents of terrorism and kidnapping would be minimised, as access to the large volume of money outside the banking system used as source of funds for ransom payments will begin to dry up.
Additionally, the new design is intended to improve the security features of the currency and make it more difficult to counterfeiting.
As the citizens kept on swarming the commercial banks in order to deposit their old naira notes so as to meet up with the CBN deadline, this led to corresponding decrease of naira that is in circulation within the public.
Before the currency redesign plan of the CBN, huge figures of currency in circulation were recorded. According to the CBN, the currency in circulation rose by N58.36bn to N2.84tn in September 2022 from N2.79tn in August.
The total amount of currency-in-circulation in the country dropped from N3.29tn as of the end of October 2022 to N1.38tn as of the end of January 2023 as a result of the naira redesign policy of the Central Bank of Nigeria. Figures obtained from the CBN showed this represents a drop of N1.91tn in the three-month period.
As this saga was ongoing, kidnappers who are used to collecting ransom in cash were also busy finding various ways of disposing the huge sums in their possession while on the other hand, the rate of their evil activities kept on reducing on a daily basis.
According to a report published by Daily Trust, suspected members of the Islamic State of West Africa Province (ISWAP) had in late January distributed huge amounts of old notes to scores of commuters in the Lake Chad Basin ahead of the deadline of the Central Bank of Nigeria’s (CBN) cashless policy.
Banditry and Kidnapping Industry has over the years continued to blossom in Nigeria as a result of financial benefits attached to the monstrous and barbaric acts.
A daunting report showed that about N653.7 million was paid as ransom in Nigeria between July 2021 and June 2022, a period of one year, for the release of kidnap victims. The security report also recorded that N6.531 billion ($9.9 million) was demanded in ransom in the year but N653.7 million ($1.2 million) was paid as ransom for the release of captives.
The report by SBM Intelligence, an Africa-focused geopolitical research and strategic communications consulting firm, stated the amounts of ransom and the numbers of kidnap incidents and victims were arrived at using media reports detailing the sum paid to armed groups within one year.
In a similar report by SB Morgen Intelligence, Over N13.662bn have been paid to non-state actors as ransom in eleven years. The period under review covers between June 2011 and July 11, 2022.
Meanwhile, it was noted that not long after the implementation of naira redesign policy especially when the deadline for the affected notes to be considered as legal tender was approaching, there was a significant reduction in the rate of kidnapping incidents across the country.
This assertion was validated by the Attorney General of the Federation and Minister of Justice, Abubakar Malami SAN as well as Mr. Emefiele.
Notwithstanding that this new policy has led to the collapse of many small scale businesses especially in the remote areas where the majority of the population are not conversant with digital transactions.
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As it was fated, five months later, Nigerians have been directed to go back to using the old notes pari passu the new notes till December 31.
This is in respect of the supreme court orders after a series of petitions filed before it by Kaduna, Kano, Kaduna, Zamfara and Kogi governors who are challenging the naira redesign policy on the account that it is becoming a threat to the economy.
As a result, the money deposit banks were directed by the CBN to recirculate the earlier moped up cash back to society for recirculation – a situation that quickly increased the volume of the currency at the hands of citizens.
The banks have once at a time complained about people no longer returning the cash back to the banks for deposit but rather being prepared to hoard it.
Ever since this development, the spate of kidnappings has drastically skyrocketed since people have started acquiring significant cash in their disposal to pay to the bandits as ransom for their kidnapped relatives.
According to a report published by The Punch on April 9th, 2023, no fewer than 333 people have been kidnapped in some parts of the country within a period of six weeks. Findings showed that the various incidents occurred between February 26 and March 7, 2023.
A chronological report of the kidnappings indicates that gunmen and terrorists are responsible for the attack in Abuja, Lagos, Cross River, Niger, Taraba, Rivers, Delta, Edo, Nasarawa, Kaduna, Kano, Ondo, Adamawa, Ekiti, Ogun, Osun, Zamfara and Plateau states.
In addition, a total sum of N7,288,000 ransom was also collected by the kidnappers.
Recall that on Friday, March 3, gunmen kidnapped two wives and a son of the chief of Sarkin Kudu, in Ibi LGA of Taraba State, Dansalama Adamu.
Gunmen had in late March 2023 abducted three persons in two different operations in Asa Local Government Area of Kwara State. The victims were a 5-year-old boy and two teenagers.
Similarly in Anambra, the abductors of renowned businessman in the state, Alexander Nwosu have peg N50m ransom for his freedom. Nwosu also known as ‘Uyoo’ was said to have been abducted at his hometown in Umuchu Community, Ekwulobia, in the Aguata Local Government Area of Anambra State on Friday, March 31, 2023.
Also, on April 04, suspected terrorists invaded a school in Kachia LGA of Kaduna State and abducted about 10 students with their location still unknown.
The worst example of the incidents was how bandit-terrorists on Friday, April 07, 2023 abducted not less than 80 children in Tsafe Local Government Area of Zamfara State. BBC Hausa reported that the children were between 12 and 17 years.
The culprits have since demanded N30m ransom as condition for freeing the abducted minors.
Equally, Prof. Onje Gye-Wado, Former Deputy Governor of Nasarawa State was abducted by gunmen on April 07, at his residence in Gwagi village within Wamba Local Government Area of the state. The following day it was reported that his abductors demanded about N70 million ransom before he would be released. Reports have it that he has been freed but not before parting with about N4 million ransom allegedly.
On the same day yet again, some gunmen reportedly attacked an Internal Displaced Persons (IDP) camp at Agan in the Makurdi Local Government Area of Benue with many killed. A few days earlier, about 46 people were killed by gunmen who invaded Umogidi village of Entekpa-Adoka district in the State. The killing comes barely 24 hours after the same village, suffered an attack with three persons killed.
Likewise, gunmen on Monday, April 10 killed two people and kidnapped a business mogul, Nasiru Na’ayya, in Gangarbi Village of Rogo Local Government Area of Kano State.
These, among few others, were the cases of kidnappings and banditry attacks reported by the media. There are several other cases that have gone below the media radar where such cases did not make major headlines.
With the gradual access to cash now, we are beginning to witness a resurgence of kidnappings and attacks. It is obvious now that this CBN policy of naira redesignation is a double-edge sword having both merits and the corresponding demerits.
At this point, it is pertinent for the stakeholders including security, economic and political strategists to brainstorm and find out how this policy can benefit the society without compromising security situations.
Specifically, the Defence Intelligence Agency, DIA, Department of State Service, DSS and National Intelligence Agency, NIA should bolster their intelligence gathering as well as disseminating the same to military and other security agencies. This will undoubtedly help to safeguard our national security.
MUKHTAR is the author of a book on “National Security Strategies” and is a staff writer with the Emergency Digest.
