Moghalu says the CBN does not owe the finance minister any information regarding its plan to redesign some naira notes.
Eko Hot Blog reports that a former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Moghalu, has said the apex bank does not owe the Minister of Finance, Zainab Ahmed, any information about its plan to redesign the N200, N500, and N1000 naira notes.
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He was reacting to comments that the minister made to a senate committee on Friday.
Recall that the minister had told senators that she was unaware of the CBN’s plan to redesign the naira notes, although the apex bank said President Muhammadu Buhari approved the move.
Mrs Ahmed, who said she learnt about the plan in the media, warned that it would provoke negative consequences on the ailing economy.
In a series of tweets on Saturday, Moghalu explained that the constitution intends the CBN to be independent of external actors, including the finance minister.
He, therefore, stated that it wasn’t out of the ordinary that Mrs Ahmed was not privately informed of the naira redesign plan.
According to the former CBN deputy governor, the bank needed only the president’s approval.
He noted that the apex bank should obtain external authorisation from only the president, mentioning three instances.
Moghalu explained that, outside of these instances, the CBN seeks approval from only its Committee of Governors and Board of Directors.
“Finance Minister Zainab Ahmed’s comment to @nassnigeria that she was not aware of the Naira redesign by @cenbank should not mislead anyone into thinking the CBN owes her that kind of information. The Bank only needs the approval of President @MBuhari for this particular exercise. It received that approval,” the former presidential candidate tweeted.
“There are only three issues on which, in the CBN Act of 2007, the Bank should obtain external authorization, and only from the President of Nigeria, for its operations: 1. Any alterations to the legal tender (the Naira); 2. any investment of the Bank’s funds outside Nigeria; 3. the Bank’s annual report.
It received that approval. There are only three issues on which, in the CBN Act of 2007, the Bank should obtain external authorization, and only from the President of Nigeria, for its operations: 1. Any alterations to the legal tender (the Naira); 2. any investment of the Bank’s
— Kingsley Moghalu OON (@MoghaluKingsley) October 29, 2022
“Outside of these, the only approving authorities for CBN operations are its Committee of Governors (note the “s”) consisting of the Governor and the four Deputy Governors , and the Board of Directors of the CBN, which includes. the Governor, the four Deputy Governors, and 7 external members which include the Permanent Secretary of the Federal Ministry of Finance (😀) and the Accountant-General of the Federation.”
the Governor, the four Deputy Governors, and 7 external members which include the Permanent Secretary of the Federal Ministry of Finance (😀) and the Accountant-General of the Federation.
— Kingsley Moghalu OON (@MoghaluKingsley) October 29, 2022
Moghalu further stated that the CBN Governor, Godwin Emefiele’s politicisation of the bank made the finance minister feel entitled to be consulted on the plan to redesign the naira notes.
“My criticism of the current Governor of the Bank in the past is that he has politicized the central bank by routinely subjecting its operations to the whims and caprices of the Presidency far beyond what is the appropriate relationship, and compromised the independence of the CBN as a result,” he continued.
“That is why the Finance Minister erroneously feels entitled to be informed or consulted. The CBN should now focus hard on the implementation of this policy.”
as a result. That is why the Finance Minister erroneously feels entitled to be informed or consulted. The CBN should now focus hard on the implementation of this policy. It will impose huge pressures on the banking system as I have said in mother comment. How can the woman frying
— Kingsley Moghalu OON (@MoghaluKingsley) October 29, 2022
The former CBN chief reiterated his previous argument that the naira redesign will put huge pressures on the banking system.
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“It will impose huge pressures on the banking system as I have said in another comment. How can the woman frying akara in the rural areas, who keeps most of her cash under her pillow, be aided to come into the banking system under this new policy? There are others as well whose money is outside the banking system for reasons that are not negative,” he added.
akara in the rural areas, who keeps most of her cash under her pillow, be aided to come into the banking system under this new policy? There are others as well whose money is outside the banking system for reasons that are not negative.
— Kingsley Moghalu OON (@MoghaluKingsley) October 29, 2022
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