Finance minister disagrees with Emefiele over plan to redesign naira

The Minister of Finance, Budget and National Planning, Zainab Ahmad, has distanced herself from the planned redesigning of the country’s currency announced on Wednesday by the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele.

Emefiele had announced that the apex bank would from December 15, 2022, began a gradual phase out of the N200, N500 and N1,000 currency notes
According to the CBN governor, the three notes will no longer be accepted from midnight of January 31st, 2023.

However, Minister of Finance, Budget and National Planning, Zainab Ahmad, on Friday disowned the policy, saying if implemented, the redesigning would portend great consequences for the nation and its economy.

Zainab who commented on the policy in response to question raised by Senator Opeyemi Bamidele, during the 2023 budget defence session, warned CBN of consequences that may arise from it .

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

“Just two days after the 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 starched naira notes for foreign currencies, particularly the 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 the January 31, 2023 date fixed for full implementation of the policy.”

While answering the question, the Minister said she is not aware of the policy but only heard of it from 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 it as regards its 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 the of naira to other 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.”

The CBN governor, had on Wednesday said that the apex bank would redesign the country’s currency from the N200 denomination to N1,000 notes.

Emefiele said the action was taken in order to take control of the currency in circulation just as he posited that the bulk of the nation’s currency notes were outside bank vaults and that the CBN would not allow the situation to continue.

According to him, the planned policy 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 notes.