CBN insists naira redesign follows due process

The Central Bank of Nigeria (CBN) has insisted that its plan to redesign the naira notes which is 12 years due is in line with the law and provisions of its Act.

This reiteration is coming as a response to claims by Zainab Ahmed, Minister of Finance, Budget and National Planning that her ministry was not carried along by the CBN in the ongoing process of redesigning three series of the Naira.

Speaking with a group of newsmen in Abuja, on Friday night, Osita Nwanisobi, director, corporate communications, CBN expressed surprise at the minister’s claim, stressing that the CBN remains a very thorough institution that follows due process in its policy actions.

According to Nwanisobi, 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.

He urged Nigerians to support the currency redesign project which was in the overall interest of Nigerians, adding that some people were hoarding significant sums of banknotes outside the vaults of commercial banks which should not be encouraged.

“Currency management in the country had faced several escalating challenges which threatened the integrity of the currency, the CBN, and the country and every top-rate Central Bank is committed to safeguarding the integrity of its local legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy,” he said.

Speaking 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.

“The currency redesign exercise was purely a central banking exercise and not targeted at any group which will, among other goals, deepen Nigeria’s push to entrench a cashless economy in the face of increased minting of the eNaira,” he said

He added that it will help curb 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.