Home Top Stories Planned Naira Redesign Policy: Finance minister tackles CBN governor, says timing wrong

Planned Naira Redesign Policy: Finance minister tackles CBN governor, says timing wrong

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By Chibuike Nwabuko

Abuja (Sundiata Post) – Minister of Finance, Budget and National Planning, Zainab Ahmed on Friday warned that the planned move by the Central Bank of Nigeria to redesign the Naira portends serious consequences on the value of Naira to other foreign currencies.

Specifically, Ahmed disassociated her ministry from the move by the Central Bank of Nigeria ( CBN), to redesign the Naira by December 15, 2022.

The Minister was responding to remarks on the policy by Senator Opeyemi Bamidele ( APC Ekiti Central) during 2023 budget defence session with the Senate Committee on Finance.

She warned CBN of consequences that may arise from the new policy.

Senator Bamidele had in a question, told the Finance Minister that barely two days after announcement of the policy by CBN, repercussion of it on the value of Naira to US dollar was being felt.

“Just two days after announcement of the policy, value of Naira to a US dollar has risen from N740 to N788 to a US dollar due to rush in exchange of Naira Notes for foreign currencies, particularly the dollar.

The Minister in her quick response said
“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 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.

Recall, the CBN Governor, Godwin Emefiele had on Wednesday said 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 just as he posited that 80 percent of the nation’s currency notes were outside bank vaults and that the CBN would not allow the situation to continue.

The planned policy he added, 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 of President Muhammadu Buhari to redesign, produce, and circulate new series of banknotes at N200, N500, and N1,000 levels.

Sundiata Post recalls that the Naira has been on a free fall since the inception of this administration and economy watchers are of the view that this lack of synergy and policy inconsistency not just between the CBN and Finance Ministry but with other government Ministries, Departments and Agencies (MDAs) gave rise to this economic woes that have befallen the nation.

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