Federal Government Not in Support of CBN Governor’s Decision to Redesign Some Naira Notes

Federal Government Not in Support of CBN Governor’s Decision to Redesign Some Naira Notes

  • The Federal Government of Nigeria has condemned the Central Bank of Nigeria's decision to redesign Naira notes
  • This comes just two days after CBN Governor Godwin Emefiele announced plans to phase out some naira notes
  • The Naira notes were expected to be available for distribution on December 15 and to replace the old naira notes by the end of January 2023

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The Federal Government on Friday distanced itself from the planned redesign of the Naira notes by the Central Bank of Nigeria (CBN).

The CBN Governor, Godwin Emefiele, announced on Wednesday that the N200, N500, and N1000 notes would be redesigned effective from December 15.

Emefiele noted the planned policy was in consonant with Sections 19 (A) and (B) of the CBN Act 2007 which allowed the apex bank to seek and obtain the approval of President Muhammadu Buhari on the matter.

Read also

Finance Minister fights against plan to redesign Naira, says FG not aware of move

Federal government not in support of CBN Naira notes
Federal government not in support of CBN plans to redesign Naira notes Credit: Presidency
Source: Getty Images

He stressed that the move aimed to control the currency in circulation and check insecurity in the country.

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Federal government is not in support

DailyTrust reports Zainab Ahmed, Minister of Finance, Budget, and National Planning, who reacted to the plan during a 2023 budget defence session in the National Assembly, expressed reservations about redesigning some naira denominations by the Central Bank of Nigeria (CBN).

According to her, the redesign of the Naira would negatively affect the country’s economy if implemented.

When pressed further on the plan, Ahmed said he only got to know about it in the news.

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 its merits or otherwise.

Read also

Lack of communication: Nigerians react as minister of finance rejects CBN's plan to redesign naira

“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 Naira to other foreign currencies.
“I will however appeal to this committee to invite the CBN governor for required explanations on the merits of the planned policy and rightness or otherwise of its implementation now.”

Experts speak on new naira notes as FG gives six conditions before distribution

In a similar development, financial experts and economists have weighed in on the CBN's decision to redesign Naira notes

Why some thought the move was brilliant, while others questioned the timing of the CBN decision

The federal government has issued six new CBN requirements ahead of the December 15 deadline

Source: Legit.ng

Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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