— “Distinguished senators, we were not consulted at the Ministry of Finance by CBN … 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—Finance Minister Told Senate Committee

• With the president’s approval in writing, the CBN does not need to consult anyone else, to redesign Naira notes- CBN Gov Replies Minister

By Samuel Egburonu, Editor

There is confusion over Nigeria’s plan to rescue her sinking currency, the Naira, and save her dwindling economy.

The latest confusion derives from the open disagreement between Nigeria’s Minister of Finance, Budget and National Planning, Zainab Ahmad, and Governor of the Central Bank of Nigeria, Godwin Emefiele, on the processes, timing, benefits and dangers of redesigning the country’s currency now.

NewsOrient reports that the sharply opposed views currently held by the two topmost managers of the country’s economy on the need to redesign the Naira barely a month before the General Election, has, amongst others, exposed the fact that some top officials of Nigerian Government are not working as a team, as many Nigerians thought they should, and the fact that the Muhammadu Buhari-led Federal Government of Nigeria is currently confused and sharply divided on how to save Nigeria’s dwindling economy.

Concerned Nigerians were yesterday, Friday, October 28, 2022, jolted when, barely 48 hours after the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, announced that the apex bank has resolved to redesign the country’s currency on December 15, 2022, the Minister  of Finance openly disagreed with him, even as she informed federal lawmakers that she and the Federal Ministry of Finance were not informed by the CBN of the plan to redesign the Naira now.

 The Minister also stated in clear terms that she believes redesigning of the Naira now will result to serious negative consequences for the Naira and for Nigerian economy.

The Minister, Zainab Ahmad, who made her personal and official opinion known while responding to a question raised by Senator Opeyemi Bamidele, during the 2023 budget defence session, warned that the sudden redesigning of the Naira will come will “consequences.”

Senator Bamidele had, in his question, has pointed out to the Finance Minister that “barely two days after the announcement of the policy by the CBN, there has been visible  repercussion on the value of Naira to US dollar.  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 starched Naira notes for foreign currencies, particularly the dollar.”

The senator said: “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 January 31, 2023 fixed for full implementation of the policy.”

Responding, the Minister 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.”

It would be recalled that CBN Governor Emefiele had on Wednesday said the bank will redesign the country’s currency notes of 200 Naira, 500 Naira and 1000 Naira denominations.

According  to the CBN Governor, CBN got the approval of President Muhammadu Buhari to redesign the said Naira notes now.

He also said CBN took the decision “in order to take control of the currency in circulation,” since, as he admitted, “the bulk of the nation’s currency notes were outside bank vaults.”

So, in a swift reply, CBN Governor, Emefiele, in a statement, told the Finance Minister: “With the president’s approval in writing, the CBN does not need to consult anyone else,” to redesign Naira notes.

This exchange of hot words over the redesigning of the Naira has become a major source of concern and confusion to Nigerians.

Reacting to the development, Alhaji Kehinde Sumonu told NewsOrient that the different tones sang by two top officials over a single government policy “is an unfortunate development. A sensitive issue like change of or redesigning of Naira notes should have been discussed and agreed opun by relevant authorities in government before it’s implementation. It is a disturbing insight into what is going on in today’s governance.”

Other respondents said the observed confusion within the government has further heightened common Nigerians’ apprehension over the likely consequences of the planned policy.

At least, in line with the suggestion made by the Minister of Finance, it is speculated that Budget Committee at the Senate may soon invite the CBN Governor to answer more questions on the proposed project.

Source: www.newsorientng.com