Finance Minister Fights Against Plan to Redesign Naira, Says FG Not Aware of Move
- The Minister of Finance, Zainab Ahmed, has said the federal government is not aware of plans by CBN to redesign naira notes
- Ahmed stated this during the 2022 budget defence at the Senate and said the move would worsen the value of the Naira.
- But Emefiele stated that CBN does not need the permission of the Minister to embark on the policy
A few days after the Governor of Central Bank, Godwin Emefiele, unveiled plans to redesign the Naira and begin circulation by December 15, 2022, the Finance Minister disagreed with the move.
Vanguard report said that Zainab Ahmed, Minister of Finance, Budget and National Planning, stated that if the plan is implemented, it will .indicate great consequences for Nigeria's economy.
Source: Getty Images
CBN bombs Finance minister
But the CBN, in a swift reaction to the Minister's opposition, said the move was approved by President Muhammadu Buhari and did not need the permission of the Finance Minister to embark on the project.
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Ahmed was responding to a question by Senator Opeyemi Bamidele at the 2023 budget defence secession, warning the CBN of great consequences that may come from the action.
Bamidele had told the Minister that the announcement is already having a grave impact on the Naira barely two days after the policy announcement.
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 starched Naira Notes for foreign currencies, particularly the dollar.
The Minister said she was not aware but heard it via the media.
According to her, the CBN did not consult the federal government or the Ministry of Finance and stated that if the policy is rolled out, it will portend grave consequences on the value of the Naira and other foreign currencies.
"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," the Minister said.
Emefiele responds
However, Godwin Emefiele, on Friday, October 28, 2022, defended the decision of the Bank to redesign some Naira notes, insisting that he doesn't need to consult with the Minister of Finance to do so, according to a report by TheNiche.
Emefiele's statement signals an escalation in the war of words between the CBN and the Finance Ministry over the decision of the apex bank to redesign some Naira notes.
CBN spent N281 billion printing new notes as latest banknotes begin circulating December 15
Recall that Legit.ng reported that the Central Bank of Nigeria (CBN) spent about N281.07 billion to print bank notes between 2016 and 2020 and another N3.88 billion to destroy bad notes.
The Leadership newspaper reported that CBN data revealed that N33.37 billion was used to print new notes in 2016 and the amount spent went up to N49.52 billion and N64.04 billion in 2017 and 2016.
Towards the end of 2019, N75.52 billion had been expended on printing new notes as the amount spent went down in 2020 to N58.07 billion.
Source: Legit.ng
