By Uche Amunike
President Muhammadu Buhari has declared his support for the Governor of the Central Bank of Nigeria (CBN) on their decision to commence the Naira notes redesign project, not withstanding the controversies surrounding the position of the Minister of Finance, Mrs Zainab Ahmed.
Recall that over the weekend, the finance Minister stated that the CBN did not carry her along in the plans concerning the Naira note redesign and sounded a warning that the new note could adversely affect the value of the Naira.
In a statement released by President Buhari’s Senior Special Assistant on Media and Publicity, Mallam Garba Shehu, the president however expressed his conviction that Nigeria will gain a lot from the Naira notes redesign.
Speaking also during an interview with Kamaluddeen Sani Shawai and Halilu Ahmed Getso, in a Hausa radio program, President Buhari stated that after listening to the reasons given by the CBN for embarking on the Naira notes redesign, he was convinced beyond doubts that the Nigerian economy will benefit from a reduction in inflation, currency counterfeiting and excess cash in circulation.
He went on to say that he found nothing wrong in the three month period given by the CBN to change to the new notes, assuring that it wasn’t short.
Hear him: ‘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.’
In the meantime, financial experts and economists have called for the fiscal and monetary policy authorities to work in synergy, while maintaining independence of the CBN.
The Vice Chairman of Highcap Securities, David Adonri also stated that even though it is important for the CBN and Ministry of Finance to work hand in hand on policy- making with the purpose of getting better results, with the independence of the CBN, like is done in other economies, even the president’s permission is not needed to carry out a project like the Naira note redesign.
His words: ‘The economy is managed by the government through macro-economic policies (fiscal and monetary policies); while the Federal Ministry of Finance (FMoF) is the fiscal authority, CBN is the monetary authority. They are expected to work harmoniously in policy formulation and implementation. Any discord between these authorities is detrimental to economic management.’
‘Before any policy is formulated by any of them, there ought to be in-depth consultation between them and thorough analyses to know the sensitivity on either side of the economy.’
‘Although each authority has its areas of exclusivity, which it may exercise without recourse, carrying each other along will facilitate superior policy outcomes.’
‘In this particular instance, the reasons for changing of currency by CBN are justifiable but there is no reason for not carrying the FMoF along for them to be prepared for the change. Where the monetary authority is independent, which we clamour for, the Central Bank does not even require permission from the President to undertake any monetary action.’
‘Independence of a central bank is essential so that monetary policy will not be influenced by political expediency.
