The Central Bank of Nigeria (CBN) has said that it followed the law and due process to carry out a redesign of naira notes, adding that the exercise is 12 years due.
The apex bank statement comes less than 24 hours after the Minister of Finance, Budget and National Planning, Zainab Ahmad, was reported as saying that her ministry was not consulted by the CBN.
A statement from the spokesman of the CBN, Mr Osita Nwanisobi, said 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 the President Muhammadu Buhari in writing to redesign, produce, release and circulate new series of N200, N500, and N1,000 banknotes.
He said the redesign of the naira notes was in the overall interest of Nigerians, adding that some persons were hoarding significant sums of banknotes outside the vaults of commercial banks.
He noted that currency management in the country had faced sevwral challenges which threatened the integrity of the currency, the CBN, and the country, adding 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 explained 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.
While assuring Nigerians that the currency redesign exercise was purely a central banking exercise and not targeted at any group, the CBN spokesman expressed optimism that the effort would, among other goals, deepen Nigeria’s push to entrench a cashless economy in the face of increased minting of the eNaira.
This, he said, was in addition to helping to curb the incidents of terrorism and kidnapping due to access of persons to the large volume of money outside the banking system used as a source of funds for ransom payments.
Nwanisobi, therefore, urged Nigerians, irrespective of their status, to support the Naira redesign project, as it is for the greater good of the economy
