IBADAN, Nigeria (VOICE OF NAIJA) – President Muhammadu Buhari has revealed why he is fully in support of the Central Bank of Nigeria, CBN’s move to redesign the naira notes.
The CBN had announced last week that will redesign the N1,000, N500 and N200 notes, effective 1 December, 2022; the development that has elicited mixed reactions.
The country’s Minister of Finance, Zainab Ahmed, however said the Central Bank of Nigeria did not consult her ministry before taking the decision to redesign naira notes by December.
She made the disclosure during the budget debate of the Ministry of Finance, Budget and National Planning in Abuja.
The Minister said even though one of the reasons for the decision is to manage inflation, consequences are sure to follow.
“We were not consulted,” she said. “It was an announcement that we heard. Part of the reasons that was advocated is that it is one of the ways to mop up the liquidity to manage inflation.
“But there are also consequences – we are looking at what the consequences will be. There will be some benefits but there will be some challenges.
“And I don’t know whether the monetary authorities have actually looked very closely at what the consequences and how they will mitigate it.”
But in a statement by his media aide Garba Shehu, the President said he is “convinced that the nation will gain a lot by doing so”.
Speaking in a Hausa radio interview with the famous journalist Halilu Ahmed Getso, and Kamaluddeen Sani Shawai to be aired Wednesday Morning on Tambari TV on Nilesat, “President Buhari said reasons given to him by the CBN convinced him that the economy stood to benefit from the reduction in inflation, currency counterfeiting and the excess cash in circulation,” Mr Shehu said on Sunday.
“He said he did not consider the period of three months for the change to the new notes as being short.
”People with illicit money buried under the soil will have a challenge with this but workers, businesses with legitimate incomes will face no difficulties at all.”