Finance Minister Disowns CBN Governor’s Naira Note Policy
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By Tijani Adeyemi –
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THE Minister of Finance, Budget and National Planning, Zainab Ahmad, has dissociated her ministry from the planned move by the Central Bank of Nigeria (CBN) to redesign high-denomination naira notes.
The minister stated this on Friday in response to a question by Senator Opeyemi Bamidele (APC Ekiti Central) during a defence of the 2023 budget before the Senate Committee on Finance.
Ahmad warned the CBN of the consequences that may arise from the policy.
Senator Bamidele had noted in his question to the finance minister that the policy was already having repercussions on the value of the naira against the United States dollar barely two days after its announcement by the CBN.
He said: “Just two days after the announcement of the policy, naira has fallen from N740 to N788 to a US dollar due to rush in the exchange of stashed naira notes for foreign currencies, particularly dollar.
“To me, the policy may be a well-conceived one but the timing, going the by realities on the ground, is very wrong as the naira may fall to as low as N1,000 to a US dollar before the January 31, 2023 fixed for the full implementation of the policy.”
The minister, in a quick response, said she and her ministry only learned about the CBN policy through the media.
“Distinguished senators, we were not consulted at the Ministry of Finance by the CBN on the planned naira note redesigning and cannot comment on it as regards the 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 for the value of naira against foreign currencies.
“I will however appeal to this committee to invite the CBN governor for required explanations as regards the merits of the planned policy and the rightness or otherwise of its implementation now,” she said.
The CBN governor, Godwin Emefiele, had on Wednesday said that the apex bank would redesign the N200, N200 and N1,000 denominations.
He said the action was taken in order to take control of the currency notes in circulation just as he posited that 80 per cent of the notes were outside bank vaults and the CBN would not allow the situation to continue.
The planned policy, according to him, is in line with Section 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.
Tribune Online gathered that the Senate Committee on Finance headed by Senator Adeola Olamilekan is ready to summon the CBN governor to throw more light on the naira redesign policy.
