The intended redesign of the naira, which was first disclosed by Central Bank governor Mr. Godwin Emefiele 48 hours ago, has been rejected by Minister of Finance, Budget, and National Planning Zainab Ahmed.
The Minister, who repudiated the strategy, claimed that the Ministry of Finance has not approved it and forewarned of its grave repercussions.
During her Friday appearance before the Senate Committee on Finance in the National Assembly to defend the ministry's 2023 budget, Senator Bamidele Opeyemi of the Ekiti Central Senatorial District posed several questions to the minister. The minister responded by stating that while the policy may be sound, it is just being implemented at the wrong time.
The naira has increased from N740 to N788 to a US dollar as a result of a rush to swap hoarded funds, according to Opeyemi, who said that the announcement may have caused a rise in the naira's value relative to the dollar.
Opeyemi stated: "To me, the strategy may be well conceived, but the timing judging by facts on the ground is terribly wrong as the Naira may collapse to as low as N1,000 to a US dollar by January 31, 2023 slated for full implementation of the policy."
The Minister responded by saying that she had nothing to do with it and had read the story in the media.
"Distinguished Senators, we cannot remark on the merits or otherwise of the planned revamping of the Naira because the CBN did not consult us at the Ministry of Finance.
The strategy as it is currently being implemented, however, portends catastrophic consequences for the value of the Naira relative to other foreign currencies, and I should know because I am a privileged Nigerian who is in charge of managing Nigeria's fiscal affairs.
She added, "I shall, however, request to this Committee to call the CBN governor for requisite clarifications as to merits of the intended policy and rightness or otherwise of its implementation today.
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