CBN Has My Backing In Replacing Naira Notes—Buhari

…Says Those Who Buried Illicit Money Under The Ground Will Have Problem With Naira Redesigning Policy

In an apparent response to claims by the Minister of Finance, Budget and National Planning, Zainab Ahmad, that her ministry was not carried along by the Central Bank of Nigeria, in the ongoing process of redesigning three series of the Naira, President Muhammadu Buhari on Sunday said that plan to launch new designs and replace high value Naira notes had his support.

Effective January 31, 2023, the existing N100, N200, N500, and N1,000 banknotes will cease to be accepted as a medium of exchange for any transaction conducted in Nigeria, the Central Bank of Nigeria had said.

The Finance Minister, Mrs Zainab Ahmed had faulted the naira redesigning project of the Central Bank of Nigeria warning that the timing for the implementation of the policy was wrong.

Ahmed who said that she had no knowledge of the policy until it was announced two days ago by the CBN Governor, Mr Godwin Emefiele said that it would have a negative impact on the foreign exchange market.

The Minister, who commented on the policy in response to question raised by Senator Opeyemi Bamidele ( APC Ekiti Central) during 2023 budget defence session she had with the Senate Committee on Finance, warned CBN of consequences that may arise from it.

She 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 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.”

But giving a clarification on the issue, the President, according to a statement by Garba Shehu,
Senior Special Assistant to the President, said he is convinced that the nation will gain a lot by doing so.
 

Speaking in a Hausa radio interview with the famous journalist Halilu Ahmed Getso, and Kamaluddeen Sani Shawai to be aired Wednesday Morning on Tambari TV on Nilesat, President Buhari said reasons given to him by the CBN convinced him that the economy stood to benefit from reduction in inflation, currency counterfeiting and the excess cash in circulation.
 

Buhari said he did not consider the period of three months for the change to the new notes as being short.
 

He said those who have illegally acquired funds buried under the ground would have challenges with the naira redesigning project.

He said, ”People with illicit money buried under the soil will have a challenge with this but workers, businesses with legitimate incomes will face no difficulties at all.”
 

In the interview, the President also addressed issues of food security and national security, among others.

The CBN Governor, Mr Godwin Emefiele had said when effective from December 15 this year, Nigerians who are in possession of the old notes should approach their banks for the new notes.

Explaining the rationale for the move, he said recent development in photographic technology and advancements in printing devices have made counterfeiting of currencies relatively easier.

According to him, the CBN had in recent times recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes.

He also stated that there has been significant hoarding of banknotes by members of the public, with statistics showing that over 80 per cent of currency in circulation are outside the vaults of commercial banks.

Emefiele also identified worsening shortage of clean and fit banknotes with attendant negative perception of the CBN and increased risk to financial stability; increasing ease and risk of counterfeiting evidenced by several security reports, as other reasons for the new policy.