CBN Denies Planning to Redominate Naira

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has announced that there are no plans to redenominate the Naira following a widespread message that the country is planning to take such a step to address the ongoing currency crisis.

In a statement signed by Mr Isa Abdul Mumin, the Director of Corporate Communications at the apex bank on Tuesday, it was disclosed that the rumoured change that was meant to commence by next year was false.

“The attention of the Central Bank of Nigeria (CBN) has been drawn to the wide circulation of a text message suggesting that the Bank plans to redenominate the country’s legal tender., the Naira, with effect from January 2024.

“We are concerned that this narrative, which we had refuted before now, appears to be gaining traction with several debates on the implication of such a policy for the Nigerian economy,” the statement said.

It noted that the message was a modified message first mulled by the current Governor of Anambra State, Mr Charles Soludo, when he was at the helm of affairs at the nation’s central bank 16 years ago.

“We wish to reiterate that the contents of the message are misleading. The authors of the message, in their mischief, modified text eked from an old policy move by a previous CBN Governor in 2007 to make it appear recent,” it added.

It warned that reforms currently being considered by the Yemi Cardoso-led CBN has no plans to restructure or redominate the Naira.

“For the avoidance of doubt, there is currently no plan by the Bank to restructure and redenominate the Naira. Whilst the Bank may be considering reforms, such are subject to laid down procedures in line with the provisions of the CBN Act, 2007.”

“The public is hereby advised to ignore the news report, as it is speculative and calculated to cause panic in the polity,” the statement added.

In August 2007, Mr Soludo suspended the redenomination of the Naira at the request of the country’s then-president, the late Umaru Musa Yar’Adua.

Mr Soludo, who held the mantle of leadership at the CBN from 2004 to 2009 said, “The board recognises and reaffirms Mr President’s authority in matters relating to the denomination of our national currency, as enshrined in Section 19 of the CBN Act 2007.”