The Central Bank of Nigeria (CBN) has reacted to the claim by the Minister of Finance, Budget and National Planning, Zainab Ahmad that her ministry was not informed of the development, insisting that it followed the laid down rules in its proposed bid to redesign N200, N500, and N1,000 denominations of the country’s currencies.
The Central Bank Governor, Godwin Emefiele on Tuesday, announced had obtained President Muhammadu Buhari’s approval to redesigned some naira notes in the denomination of N200, N500 and N1000.
Zainab, while defending her ministry’s 2023 budget before the Senate Committee on Finance in Abuja on Friday, however claimed that the country’s apex bank failed to consult her ministry on the proposed redesign of the denominations.
“We were not consulted. It was an announcement that we heard and there are also consequences.
“We are also looking at what the consequences will be. There will be some benefits but there are some challenges. I don’t know if the monetary authorities have looked very closely at what the consequences are and how they can be mitigated.
“I still advise that you have that discussion with the monetary authority,” she had told the senate committee
However, expressing surprise at the minister’s claim while speaking with newsmen Friday night in Abuja, the spokesperson of the CBN, Mr. Osita Nwanisobi emphasised that the apex bank followed due process in its policy actions.
“The management of the CBN, in line with provisions of section 2(b), section 18(a), and section 19(a)(b) of the CBN Act 2007, had duly sought and obtained the approval of President Muhammadu Buhari in writing to redesign, produce, release and circulate new series of N200, N500, and N1,000 banknotes,” he said.
According to Nwanisobi, “currency management in the country had faced several escalating challenges, which has threatened the integrity of the currency, the CBN and the country,” adding that “every top-rate Central Bank was committed to safeguarding the integrity of the local legal tender, the efficiency of its supply as well as its efficacy in the conduct of monetary policy.”
On the timing of the redesign project, Nwanisobi explained that the CBN had waited long enough for 20 years to carry out a redesign, “whereas the standard practice globally was for central banks to redesign, produce and circulate new local legal tender every five to eight years.”
While calling on Nigerians, irrespective of their status, to support the currency redesign project for the greater good of the economy.
Nwanisobi reiterated that some persons were hoarding significant sums of banknotes outside the vaults of commercial banks, which trend, according to him, should not be encouraged by anyone who means well for the country.
The spokesperson stressed that while the currency redesign is purely a central banking exercise and not targeted at any group, the effort will among other goals, deepen Nigeria’s push to entrench a cashless economy in the face of increased minting of the eNaira.
