Naira Redesign Was Good for the Economy, Former Acting CBN Governor, Shonubi Tells Court

Alex Enumah in Abuja

A former Acting Governor of the Central Bank of Nigeria (CBN), Mr. Folashodun Shonubi, yesterday, told a High Court of the Federal Capital Territory (FCT), that the naira redesign policy introduced by the administration of former President Muhammadu Buhari, was for the overall good of the country’s economy.

 Shonubi said this under cross examination by Mr. Olalekan Ojo, the lead lawyer to the immediate past Governor of the CBN, Mr. Godwin Emefiele, who is currently standing trial before Justice Maryann Anenih of the FCT High Court in Maitama, Abuja.

Although, Shonubi who served as Deputy CBN Governor, Operations, while giving evidence, however, stated that the apex bank under Emefiele did not follow its laid down procedures for currency redesign.

He, however, stressed that Emefiele got a presidential directive to go ahead with the policy.

Shonubi also admitted during cross examination  that the purpose of the Naira redesign was to prevent currency counterfeiting, currency hoarding and for the general benefit of the Nigerian economy.

The Economic and Financial Crimes Commission (EFCC) had last year arraigned Emefiele on a four-count charge bordering on disobedience to the direction of law and illegal act causing injury to the public.

In the charge marked: CR/264/2024, the Commission alleged that Emefiele, between October 19, 2022 and March 5, 2023 disobeyed the direction of Section 19 of the CBN Act by approving the redesign and printing of the N200, N500 and N1,000 notes without the recommendation of the CBN board and strict approval of President, Federal Republic of Nigeria, which conduct caused injury to the public.

 At the resumed trial yesterday, the witness explained that  the normal procedures of currency redesign at the CBN required the management department to make recommendation to the effect of redesign after which a paper would be submitted to the Committee of Governors (COG) of the bank for consideration.

Shonubi further explained that upon the COG’s approval to the CBN Board, which would in turn make recommendation to the President, who then approves before an internal committee would then be set up to execute the redesign.

Giving further evidence, the witness, who informed that he was a member of both the COG and CBN Board as a deputy governor, said: “While serving as Deputy Governor, there was a time the Naira was redesigned. That was in 2022. The CBN did not follow the procedures (for redesigning the Naira).

“I was a member of CBN Board as deputy governor. The chairman of both the COG and board was the governor.

“Prior to 2022, in early 2021, the currency department recommended the redesign of the currency notes. A paper was presented to me and on the instruction of the governor (Emefiele), it was stepped down. In 2022, we again represented the paper and we’re asked to hold on.

 “In mid-October, 2022 the deputy governors were invited to a meeting in the office of the governor whereby he (Emefiele) informed us that he has presidential approval for currency redesign. He showed us the memo, Mr. President’s signature and instruction on the last page.”

Shonubi recalled that it was after a mid-October meeting, that the COG held its next meeting where the currency department presented a memo which was approved by the COG, adding that the CBN Board was informed in November at its meeting.

He told the court that while the COG held its meeting after the four deputy governors had been informed of the President’s approval, the board did not recommend the Naira redesign.

The witness added that what Emefiele showed the deputy governors was different from what was eventually produced.

The witness also admitted that not only was there a Presidential approval for the redesign of currency, he admitted that the President, who had the final say on redesign did not complain about the printed currency before it was launched by the President.

With respect to the debit of N124 billion into the Consolidated Revenue account, the witness admitted that the figure of the N124 billion formed part of the N23 trillion Ways and Means which was approved by the President, the Federal Executive Council and appropriated by the National Assembly.

The EFCC had on May 15, arraigned Emefiele on a four count charge before Justice Maryanne Anenih of the High Court of the Federal Capital Territory (FCT), sitting in Maitama, Abuja.

 Emefiele however denied the charge and was admitted to bail in the sum of N300 million.

In the four count charge, the anti-graft agency had claimed that Emefiele embarked on the naira redesign without the approval of the Board of the CBN as well as then President, Muhammadu Buhari.

Specifically, the EFCC is accusing Emefiele of approving the printing of various quantities of the new Naira notes “without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence”.