Naira Redesigning: Should Senate Invite CBN Governor?

Just a day after the Central Bank of Nigeria (CBN) announced that it will redesign and print new naira notes for circulation into the economy, the Nigeria naira has fallen exponentially.

The National Assembly members are worried. Politicians are worried. Business men are also worried because of the instability of the naira. Shouldn’t the lawmakers empowered with the powers of oversight and appropriation, amongst others, invite the CBN Governor Godwin Emefiele for further explanation?

The national assembly said they were not brief on the new policy likewise the minister of finance who was at the National Assembly on Friday for budget defense.

The US dollar rose against the naira from N740 to N788 just a day after the CBN made the announcement.

Also, two days after the Central Bank of Nigeria (CBN), announced it would redesign the naira and introduce the same to the market, the Minister of Finance, Budget and National Planning, Zainab Ahmad, rejected the policy, warning it will have a devastating effect on the economy.

Zainab, who totally disowned the policy, said there will be severe consequences.

The CBN Governor Godwin Emefiele on Wednesday announced the introduction of newly designed notes of N200, N500 and N1,000.

He said the circulation will begin December 15, 2022 adding that the old notes remain valid until January 31, 2023 adding that all holders of the old naira notes should begin returning it immediately without Bank charges.

But when asked about the policy by the Senator representing (APC Ekiti Central), Opeyemi Bamidele, during the 2023 budget defense session Zainab warned CBN of consequences that may arise from the policy announcement.

Senator Bamidele had in his question, told the Finance Minister that barely two days after announcement of the policy by CBN, repercussions of it on the value of Naira to US dollar was being felt.

“Just two days after the announcement of the policy, the value of Naira to a US dollar has risen from N740 to N788 to a US dollar due to a rush in exchange of statched Naira Notes for foreign currencies, particularly the dollars.

“To me, the policy may be a well conceived one, but the timing going by realities on ground is very wrong as the Naira may fall to as low as N1,000 to a US dollar before January 31, 2023 which is a time fixed for full implementation of the policy”, Opeyemi said.

But the Minister of Finance, Zainab in her response, said She and her other Ministers are not aware of the policy but only heard of it from the media.

“Distinguished Senators, we were not consulted at the Ministry of Finance by CBN on the planned Naira redesigning and cannot comment on it as regards 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.

“I will however appeal to this committee to invite the CBN governor for required explanations as regards merits of the planned policy and rightness or otherwise of its implementation now “, she said.

Now that the Minister of finance has given the lawmakers a clue, shouldn’t the Senate invite him for more explaination? The economy has been going down despite new policies being introduced by the CBN.

While some experts say the CBN is answerable to the world Bank and the International Monetary Fund (IMF), they forgot that it is the president who appointed the CBN Governor that gives directives for the designing of naira.

They forget that it is the National Assembly, Senators that have the power to screen and confirm the Presidential nominees. The policies of the CBN have been putting more pressure on the naira over the years and the Senate should invite Godwin Emefiele for further explanation.