CBN fires back at Finance Minister, insists naira redesign complies with due process

The Central Bank of Nigeria (CBN) has fired back at the Minister of Finance, Budget and National Planning, Zainab Ahmad, insisting that the Bank adhered to due process in the decision to redesign the N200, N500, and N1,000 banknotes. The Public Affairs director of the CBN, Osita Nwanisobi, dismissed the claim that the Finance Ministry was not consulted in the decision.

Nwanisobi stated that the CBN is  =surprise at the minister’s claim, noting that the CBN remains a very thorough institution that follows due process in its policy actions.

Nwanisobi declared 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 banknotes.

He emphasized that currency management in the country had faced several escalating challenges which threatened the integrity of the currency, the CBN, and the country.

Nwanisobi  said 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.

On the timing of the redesign project, Nwanisobi stated that the CBN had even tarried for too long considering that it had to wait 20 years to carry out a redesign, whereas the standard practice globally was for central banks to redesign, produce and circulate new local legal tender every five to eight years.

He asserted that the redesign will deepen Nigeria’s push to entrench a cashless economy in the face of increased minting of the eNaira, help to curb the incidents of terrorism and kidnapping, amongst others.