- Rejects policy, warns of likely consequences
- CBN doesn’t owe Minister beforehand notice – Insider
BY EDMOND ODOK – Discordant tunes seemingly holding sway as the trade mark of the President Muhammadu Buhari-led administration are again on rendition with the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmad, distancing herself and the Ministry from the Central Bank of Nigeria (CBN) planned Naira redesign scheduled to flag off on December 15, 2022.
Mrs Ahmed tirades against the policy thrust comes barely 48 hours after the apex bank announced its decision to float new Naira notes while phasing out the old one as legal tenders by January 31, 2023.
In her shocking delivery at the 2023 budget defence session with the Senate Committee on Finance, the Minister spoke about her discomfort with the plan and also cautioned the CBN of consequences that are likely to trail the policy.
Amplifying claims that herself and the Minister of State were unaware of the policy but only heard of the media announcement, Mrs Ahmed told the lawmakers; “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”.
She was responding to issues raised by Senator Opeyemi Bamidele at budget defence that barely two days after the CBN announcement of its plans, the nation’s financial system was already feeling the adverse impact on the value of Naira to US dollar.
According to the All Progressives Congress (APC) lawmaker, representing Ekiti Central Senatorial district; “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 stacked Naira Notes for foreign currencies, particularly the dollar.”
Expressing his fears and that of his colleagues ahead of next year’s general elections, the lawmaker further 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.”
However, reacting to the Finance Minister’s submission, a competent source within the financial system said the apex bank is acting in line with its autonomous status on monetary issues.
“Mrs Ahmed comment at the budget defence before the lawmakers is clearly a misstep by her as the CBN does not owe the Ministry any explanation given that the President as the approving authority has endorsed the plan.”
Further laughing off the caution message by Mrs Ahmed and the APC legislator, the source, who preferred not having his name in print for obvious reasons, said; “The Finance Minister doesn’t have to know about any CBN policy beforehand. The apex bank acted within the ambit of the law that established it after getting the Presidential nod.
“So, Madam Minister should be more circumspect; avoid making worrying comments on the policy and concentrate efforts on her areas of responsibility that have been calling for urgent attention.”
The CBN Governor, Godwin Emefiele, had on Wednesday, October 26, 2022, announced the apex bank’s decision to redesign, produce, and circulate new series of banknotes at N200, N500, and N1,000 denominations.
With explanations that the action is meant to control the currency in circulation, Emefiele said the bulk of the nationโs currency notes were outside bank vaults and the apex bank is determined to check the situation.
