…Says Finance Ministry Unware of Policy
••Warns CBN of Consequences
The Governor of Central Bank of Nigeria, CBN, Godwin Emefiele, may have contracted a problem to himself on the apex bank’s currency redesign as Finance minister says her ministry was not aware of the policy.
On Wednesday, the CBN Governor Emefiele in a special media briefing told journalists that the apex bank would redesign the country’s currency from 200 Naira denomination to N1,000 notes .
According to Emefiele, the action was taken in order to take control of the currency in circulation.
He explained that the bulk of the nation’s currency notes were outside bank vaults and that the CBN would not allow the situation to continue.
Emefiele said he got the express permission of President Muhammadu Buhari to redesign, produce, and circulate new series of banknotes at N200, N500, and N1,000 notes.
He stated that the decision was in line with Sections 19, Subsections a and b of the CBN Act 2007, upon which the Management of the CBN sought and obtained the approval for the task.
Surprisingly, the Minister of Finance, Budget and National Planning , Zainab Ahmad, has warned the CBN of the consequences of the actions by going ahead to redesign the country’s currency December 15, 2022.
She said that the Federal Government, has on Friday disowned the CBN governor and his policy.
Zainab Ahmed made the disclosure while responding to Senator Opeyemi Bamidele, on a query on the policy during the 2023 budget defence session.
According to her, there are consequences that may arise from it and distances the FG from the policy.
She said if implemented, the redesigning would portend great consequences for the nation and its economy.
Observing the rate of the Naira to the Dollar after the announcement by CBN, Senator Bamidele told the Finance Minister that two days after announcement of the policy by CBN , the spiral effect on the Naira has been noticed.
He observed that the value of Naira to US dollar has tremendously changed.
“Just two days after announcement of the policy , value of Naira to a US Dollar has risen from N740 to N788 due to a rush in exchange of starched Naira Notes for foreign currencies , particularly dollar.
“To me , the policy may be a well conceived one , but the timing going by realities on ground , is very wrong as the Naira may fall to as low as N1,000 to a US dollar before January 31, 2023 fixed for full implementation of the policy.” Bamidele observed.
Responding the Minister told the Senators that she was not aware of the policy but only heard it from the media .
” Distinguished senators , we were not consulted at the Ministry of Finance by CBN on the planned Naira redesigning and cannot comment on it as regards merits or otherwise .
“However as a Nigerian privileged to be at the top of Nigeria’s fiscal management , the policy as rolled out at this time , portends serious consequences on the value of Naira to other foreign currencies.
“I will however appeal to this committee to invite the CBN governor for required explanations as regards merits of the planned policy and rightness or otherwise of its implementation now.” She said.
