….. Warns CBN Governor On Consequence
The Federal Government has rejected the proposed policy initiated by Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele to redesign some of the nation’s currency notes on December 15.
CBN Gov.,Emefiele
The Minister of Finance Budget and National Planning, Zainab Ahmad, who spoke during a meeting with the Senate Committee on Finance, disowned the currency redesign policy, warning that it would provoke negative consequences on the ailing economy.
Ahmad gave the warning on the policy while responding to a question raised by Senator Opeyemi Bamidele (APC, Ekiti Central) during the 2023 budget defence session with the Senators, cautioning the apex bank of unpleasant outcomes
Bamidele had in his question, told the Finance Minister that barely two days after announcement of the policy by the CBN authorities, Nigerians noticed a downward slide on the value of Naira to US Dollar
He said: “Just two days after the announcement of the policy, the value of Naira to a US dollar has risen from N740 to N788 to a US dollar due to a rush in exchange of starched Naira notes for foreign currencies, particularly dollars.
“To me, the policy may be a well-conceived one but the timing going by the 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.”
However, while responding, the Minister surprisingly claimed that she and her Ministry were not aware of the policy but only heard of it from the mass media. “Distinguished Senators, we were not consulted at the Ministry of Finance by the 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
Emefiele had on Wednesday, announced that the apex bank would redesign the country’s currency from N200 denomination to N1,000 notes. He said that the action was taken in order to take control of the currency in circulation, stating that the bulk of the nation’s currency notes were outside bank vaults and that the CBN would not allow the situation to continue.
The CBN boss also noted that the planned policy was in tandem with Sections 19, Sub sections 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 bank notes at N200, N500, and N1,000 levels.