Finance Minister Disowns CBN Governor’s Naira Note policy

THE Minister of Finance, Budget and National Planning, Zainab Ahmad, has dissociated her ministry from the planned move by the Central Bank of Nigeria (CBN) to redesign high-denomination naira notes.

The minister stated this on Friday in response to a question by Senator Opeyemi Bamidele (APC Ekiti Central) during a defence of the 2023 budget before the Senate Committee on Finance.

Ahmad warned the CBN of the consequences that may arise from the policy.

Senator Bamidele had noted in his question to the finance minister that the policy was already having repercussions on the value of the naira against the United States dollar barely two days after its announcement by the CBN.

He said: “Just two days after the announcement of the policy, naira has fallen from N740 to N788 to a US dollar due to rush in the exchange of stashed naira notes for foreign currencies, particularly dollar.

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

The minister, in a quick response, said she and her ministry only learned about the CBN policy through the media.

“Distinguished senators, we were not consulted at the Ministry of Finance by the CBN on the planned naira note redesigning and cannot comment on it as regards the 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 for the value of naira against foreign currencies.