FG disowns Emefiele over plan to redesign the Naira

Ibekimi Oriamaja Reports

Almost forty Eight hours after the Governor of the Central Bank of Nigeria, Godwin Emefiele, announced that the apex bank would redesign the country’s currency on December 15, 2022, the Federal Government disagreed.

Minister of Finance, Budget, and National Planning Zainab Ahmad, who opposed the policy, stated that if implemented, the redesigning would have serious consequences for the country and its economy.

Zainab, who commented on the policy in response to a question raised by Senator Opeyemi Bamidele during the 2023 budget defense session, warned CBN of the potential consequences.

Senator Bamidele, in his question to the Finance Minister, stated that “just two days after the policy was announced by the CBN, the value of Naira to a US dollar has risen from N740 to N788 to a US dollar due to rush in exchange of starched Naira Notes for foreign currencies, particularly dollar.”

“To me, the policy may be well-conceived, but the timing, based on realities on the ground, is very wrong, as the Naira may fall to as low as N1,000 to the US dollar before the policy’s full implementation date of January 31, 2023.”

In response to the question, the Minister stated that she was not aware of the policy and had only learned about it through the media.

“Distinguished senators, we were not consulted at the Ministry of Finance by the CBN on the planned Naira redesigning and cannot comment on its merits or otherwise,” she said.

“However, as a Nigerian privileged to be at the helm of Nigeria’s fiscal management, the policy as it stands now portends serious consequences for the value of the Naira in relation to other foreign currencies.”

“However, I will request that this committee invite the CBN governor to provide the necessary explanations regarding the merits of the proposed policy and the appropriateness or otherwise of its implementation now.”

Keep in mind that CBN Governor Emefiele announced on Wednesday that the apex bank would redesign the country’s currency from 200 Naira notes to N1,000 notes.

Emefiele stated that the action was taken to seize control of the currency in circulation, and that the CBN would not allow the situation to continue.

According to him, the planned policy was in accordance with Sections 19, Subsections a and b of the CBN Act 2007, pursuant to which the CBN sought and received President Muhammadu Buhari’s approval to redesign, produce, and circulate new series of banknotes at N200, N500, and N1,000 notes.