Finance minister disagrees with CBN governor on naira redesign

There seems to be a discordant tune among top current managers of the Nigerian economy on the plan by the Central Bank of Nigeria to redesign three naira notes. N200, N500 and N1000.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, said on Friday that her ministry was not consulted before the CBN took the decision and warned about the serious economic consequences of the action.

Ahmed disclosed this during the 2023 budget defence session with the Senate Committee on Finance in Abuja.

The CBN Governor, Godwin Emefiele, announced the bank had redesigned the naira notes and that they would be introduced on December 15.

Emefiele said the decision was in line with the provisions of the CBN Act 2007 and that the bank had “sought and obtained the approval of President Muhammadu Buhari to redesign, produce, release and circulate new series of banknotes”.

But the finance minister said the ministry of finance was not part of the CBN decision.

She stressed that such action had serious consequences for the economy, adding that the decision required rigorous economic planning.

“We were not consulted. It was an announcement that we heard,” she said.

Ahmed said part of the reasons the CBN gave for taking the step was the mopping up of liquidity to manage inflation.

However, the finance minister said, “We are also looking at what the consequences will be. There will be some benefits but there are some challenges. I don’t know if the monetary authorities have looked very closely at what the consequences are and how they can be mitigated.”