Zainab Ahmed, the Minister of Finance, Budget, and National Planning, has distanced herself from the Central Bank of Nigeria’s plan to redesign the naira on December 15, 2022.....KINDLY READ THE FULL STORY HERE▶

When asked about the strategy during the 2023 budget defense session she held with the Senate Committee on Finance, which was presided over by Senator Solomon Olamilekan, the Minister responded by warning the CBN of potential repercussions.

The Senate had informed the Finance Minister that the CBN’s policy had already had a detrimental impact on the country’s foreign exchange just two days after it was announced.

The Senate stated that the rush to convert stored Naira Notes for other currencies, notably the dollar, has caused the value of the Naira to increase from N740 to N788 in just two days after the policy was announced.

The senators went on to say that while the program may be well-intended, the timing—considering the actual situation—is horribly incorrect because the naira might fall as low as N1,000 to the US dollar by January 31, 2023, the date set for the policy’s full implementation.

Ahmed responded by claiming that neither she nor her Ministry were aware of the strategy and had only learned about it from the media.

Finance on the planned revamping of the naira, so we are unable to comment on its merits or otherwise,” she added.

“However, as a Nigerian who has the luxury of overseeing Nigeria’s fiscal management, I am concerned that the strategy as it is being implemented now portends catastrophic consequences for the value of the naira relative to other foreign currencies.

However, I shall request that this committee ask the CBN governor to provide the necessary justifications for the intended policy’s benefits and the appropriateness or otherwise of its current implementation.

Godwin Emefiele, the governor of the Central Bank of Nigeria, had stated on Wednesday that the country’s currency would change from 200 Naira notes to 1,000 Naira notes.

He claimed that the action was taken to seize control over the currency that was in use, just as he had suggested that the majority of the country’s currency notes were kept outside bank vaults and that the CBN would not permit the situation to persist.

He continued that the proposed policy was in accordance with Sections 19, Subsections a and b of the CBN Act 2007, pursuant to which the Management of the CBN requested and obtained the President’s approval, Major General Muhammadu Buhari (ret. ), to redesign, produce, and circulate a new series of banknotes at the denominations of N200, N500, and N1,000 notes.