Our reporter| The Central Bank of Nigeria did not consult the finance ministry before taking the decision to redesign naira notes by December, the Minister of Finance, Zainab Ahmed, said on Friday.
Ahmed, who made the disclosure during the budget debate of the Ministry of Finance, Budget and National Planning in Abuja,
said even though one of the reasons for the decision is to manage inflation, consequences are sure to follow.
“We were not consulted,” she said.
“It was an announcement that we heard. Part of the reasons that was advocated is that it is one of the ways to mop up the liquidity to manage inflation.
“But there are also consequences – we are looking at what the consequences will be. There will be some benefits but there will be some challenges.
“And I don’t know whether the monetary authorities have actually looked very closely at what the consequences and how they will mitigate it.”
The Central Bank of Nigeria (CBN) had on Wednesday said it will redesign the N200, N500, and N1,000 notes, effective December, 15.
CBN Governor, Godwin Emefiele, while making the announcement during a special press briefing in Abuja, said the action was taken in order to take control of the currency in circulation.
The apex bank, Emefiele stated, secured the approval of President Muhammadu Buhari to roll out new notes to replace the existing currency in circulation.
“In line with the provisions of Sections 2(b), Section 18(a) and Section 19, Sub section(a) and (b) (2007), the management of the CBN has sought and obtained the approval of President Muhammadu Buhari to redesign, produce, release and circulate new series of banknotes at N200, N500, and N1,00 levels,” he said.
“In line with this approval, we have finalised arrangements for the new currency to begin circulation from December 15, 2022, after its launch by President Buhari.
“The new and existing currencies shall remain legal tender and circulate together until January 31, 2023, when the existing currencies shall cease to be a legal tender.”
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