Naira redesign was approved by Buhari - CBN replies Finance Minister

The CBN's comment is an apparent response to claims by the Minister of Finance, Budget and National Planning, Zainab Ahmad, that her ministry was not consulted by the CBN before the introduction of the policy.

Pulse reports that the Finance Minister had dissociated herself from the new monetary policy claiming that the CBN acted unilaterally.

Ahmed made this known during the 2023 budget defence session she had with the Senate Committee on Finance, chaired by Senator Solomon Olamilekan Adeola, on Friday, October 28, 2022.

The Minister also warned the CBN of consequences that may arise from the policy, which she claimed was ill-timed

CBN replies Minister: However, in a statement from the CBN, the spokesman of the bank, Osita Nwanisobi, expressed surprise at the minister’s claim, stressing that the CBN remains a very thorough institution that follows due process in its policy actions.

Buhari granted approval: Nwanisobi further explained that 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.

While urging Nigerians to support the currency redesign project, the spokesman said the policy was in the overall interest of Nigerians, reiterating that some persons were hoarding significant sums of banknotes outside the vaults of commercial banks.

He said the trend should be discouraged by anyone who means well for the country.

Nwanisobi further noted that currency management in the country had faced several escalating challenges which 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.

Commenting on the timing of the project, he explained that the CBN had waited 20 years, while the standard practice globally was for central banks to redesign, produce and circulate new local legal tender every five to eight years.

Nwanisobi also reassured Nigerians that the currency redesign exercise was purely a central banking exercice that's not targeted at any group, expressing optimism that the effort would, among other goals, deepen Nigeria’s push to entrench a cashless economy in the face of increased minting of the eNaira.