President Muhammadu Buhari on Sunday said that the decision of the Central Bank of Nigeria, CBN, to launch new designs and replace high value Naira notes had his support.
This is as he said that he was convinced that the nation would gain a lot by doing so.
According to the Senior Special Assistant to the President on Media and Publicity, Mallam Garba Shehu, Buhari spoke during an 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 reduction in inflation, currency counterfeiting and the excess cash in circulation.
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.”
In the interview, the president also addressed issues of food security and national security, among others.
It would be recalled that the Minister of Finance, Zainab Ahmed has said that her ministry was not consulted on the new monetary policy announced by the CBN to redesign N200, N500 and N1000 naira notes with effect from December 15.
READ ALSO: CBN redesigns naira, begins circulation December 15
Ahmed spoke in Abuja on Friday while responding to questions from Senator Bamidele Opeyemi (APC-Ekiti) on the impact of the policy at the budget defence session with Senate Committee on Finance.
Opeyemi had decried the spontaneous increase in price of dollar to naira at the parallel market since the policy was announced by the CBN.
He expressed concern on the likely consequences of the policy on the nation’s economy, given the astronomical increase of forex.
Corroborating, chairman of the Committee, Senator Solomon Adeola (APC-Lagos) said with the announcement of the policy, dollar had started going up.
He said the consequences of the policy were that price of dollar to the naira was rising, adding that it might rise to N1,000 before December, when the policy would take off.
The minister said she received information on the new policy just as other Nigerians.
According to her, her ministry, as a fiscal authority, was not part of the process leading to formulation and announcement of the policy.
“We were not consulted, it was an announcement that we heard, it was said that part of the reason advocated was that it was one of the ways to mop up liquidity to manage inflation.
“But there are consequences that we are also looking at, what will the consequences 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 as to where the consequences are and how they can be mitigated.
“So, I still advise that you have that discussion with the monetary authorities,” she said.
She said it was her opinion, as a Nigerian, not as a fiscal authority, reiterating that as finance ministry and fiscal authority, they were unaware of the policy.
