The Minister of Finance, Budget and National Planning, on Thursday, disagreed strongly with the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, over moves by the Apex bank to redesign the naira.
Responding to questions from Senator Opeyemi Bamidele (APC Ekiti Central), at the 2023 budget defence session of the ministry with the Senate Committee on Finance, Ahmad warned the CBN Governor of consequences that may arise from his actions.
Her remarks followed a statement by the lawmaker that barely two days after the CBN announced the policy, its impact on the value of the Naira to the US Dollar was being felt.
He said, “Just two days after the announcement of the policy, the value of the Naira to a US dollar has risen from N740 to N788 to a US dollar due to the rush in exchange of stacked Naira Notes for foreign currencies, particularly the dollar.
“To me, the policy may be a well-conceived one, but the timing going by realities on the 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.”
In a dramatic twist, however, the finance minister disowned the CBN policy, insisting that the ministry was in the dark about it.
She said that her officials and herself learnt of it through the media.
Her words, “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 the value of the 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 said .
The CBN had on Wednesday said that it would redesign the country’s currency from 200 Naira denomination to N1,000 notes.
It said the action was taken in order to take control of the currency in circulation, even as the CBN Governor revealed that the bulk of the nation’s currency notes were outside bank vaults and that the CBN would not allow the situation to continue.
According to him, the policy was in line with Sections 19, Subsections A and B of the CBN Act 2007.
This Act Emefiele said is the foundation on which the Management of the CBN sought and obtained the approval of President Muhammadu Buhari to redesign, produce, and circulate new series of banknotes at N200, N500, and N1,000 note
