It was odd that Minister of Finance, Budget and National Planning Zainab Ahmed and Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele were not on the same page concerning the CBN’s move to redesign the Naira. It was yet another sign of untidiness in the President Muhammadu Buhari administration.
After a needless controversy, the president’s position on the issue clarified the situation. A statement by his Senior Special Assistant on Media and Publicity, Garba Shehu, said Buhari backed the CBN in a Hausa radio interview to be aired on November 2 on Tambari TV on Nilesat. The statement was titled ‘CBN has my backing in replacing Naira notes, says President Buhari.’
The apex bank had, on October 26, announced its decision to unveil redesigned N200, N500 and N1000 notes on December 15, 2022. The existing notes would cease to be regarded as legal tender by January 31, 2023, it stated.
Two days later, Ahmed told the Senate Committee on Finance during the 2023 budget defence session: “We were not consulted at the Ministry of Finance by the CBN on the planned naira redesigning and cannot comment on it as regards merits or otherwise.”
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President Buhari’s position has not ended the matter because there are other controversies connected with it. For instance, while explaining the expected positives of the Naira redesign, CBN’s Director of Corporate Communications Osita Nwasinobi had argued that the change would, among other things, help 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.”
It remains to be seen how redesigning the Naira will help the fight against terrorism and kidnapping. It is likely those involved in such criminal activities are aware of the CBN’s new design and would redesign their operations too.
For instance, reacting to the issue, the controversial Islamic cleric who has acted as a negotiator with terrorists in the past, Sheikh Ahmad Gumi, argued: “As for the question of starving kidnappers of Naira, it goes without saying that they will resort to Dollars and other hard currencies which will further put more pressure on it, making the rotten situation worse.”
He added: “Kidnapping can only be stopped by robust policing, social justice for all, and equitable wealth distribution. Any cosmetic measure will not stop it.”
It can be said that his words expressed the thoughts of many Nigerians who don’t see the new Naira as a solution to the country’s “comprehensive crisis.”