The Central Bank of Nigeria (CBN) said due process was followed in its decision to redesign the nation’s currency.
While responding to the Finance Minister Zainab Ahmed’s charge that her ministry was kept in the dark about the impending change, the CBN spokesman Osita Nwanisobi maintained that the apex bank was solely responsible for currency management and introduction of new notes have been overdue for 12 years.
Osita said in a statement Saturday: “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 series of N200, N500, and N1,000 banknotes.
“Currency management in the country had faced several escalating challenges which threatened the integrity of the currency, the CBN, and the country. 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.
“The CBN 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 said the introduction of new notes was done in the best interest of the country.
“Some persons were hoarding significant sums of banknotes outside the vaults of commercial banks. This trend should not be encouraged by anyone who means well for the country
“the currency redesign exercise was purely a central banking exercise and not targeted at any group.”
While addressing Senate on committee Friday Mrs. Ahmed stated: “Distinguished Senators, the CBN did not consult us at the Ministry of Finance over the planned revamping of the naira, thus we are unable to remark on its 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 the value of naira to other foreign currencies.
