The decision to mop up the Nigerian currency may, on the surface, tickle a populist instinct. But at bottom, it is not only bad economics but also dangerous for all. The Central Bank of Nigeria (CBN) governor unearthed the policy to a storm. First, the finance minister dissociated herself from it. We are not sure if this was out of institutional pride or ideological difference. But one thing is certain: Godwin Emefiele, the CBN governor, being the chieftain of the monetary side of the economy, was not in sync with the fiscal region. This is the same problem we headlined when the Kuje Prison attack happened, and we pointed out the lack of coherence among the security agencies.

If the President approved the CBN idea, he probably did it out of a good heart. But economics is not about charity, it is about what is and not necessarily what ought to be. What ought to be become more conjectural and speculative, and it is a risk that must be calculated before a plunge.

The apparent reasons for the step are, one, we have a lot of money outside the formal financial system. Two, politicians are believed to hoard our currencies because they acquired them through illicit means. Three, terrorists operate their blackmail cash outside the banking halls.