Naira Redesign: Ex-CBN Deputy Gov. Claims Emefiele Disregarded Protocol in Naira Redesign

Emefiele's Naira Redesign Decision Faces Scrutiny Over Lack of Approval

“While serving as deputy governor, there was a time naira was redesigned. That was in 2022. The CBN did not follow the procedures (for redesigning the naira)...”

Former CBN Deputy Governor Shonubi testifies against Emefiele, revealing discrepancies in naira redesign process.

Folashodun Shonubi, former Deputy Governor of the Central Bank of Nigeria (CBN) in charge of Operations, has made some explosive claims about the 2022 naira redesign carried out under Godwin Emefiele's leadership. Testifying before Justice Maryann Anenih of the High Court of the Federal Capital Territory in Abuja, Shonubi alleged that the CBN didn't follow standard procedures during the redesign. This testimony was part of Emefiele's ongoing trial, where he's facing a four-count charge brought by the Economic and Financial Crimes Commission (EFCC) for disobedience to the law and causing public harm.

Key Allegations Against Emefiele:

Disregard for Procedure: Shonubi claims the CBN didn't follow established protocols during the 2022 naira redesign.

Illegal Acts: Emefiele is accused of disobeying the law and causing harm to the public.

EFCC Charges: The four-count charge includes disobedience to the direction of law and illegal acts causing injury to the public.

Emefiele had previously addressed concerns about the management of existing banknotes in a press briefing on October 26, 2022. However, Shonubi's testimony suggests that there may have been more to the story. As the trial unfolds, we can expect more revelations about the CBN's actions during the naira redesign.

Godwin Emefiele, the former Central Bank of Nigeria (CBN) governor, is facing serious allegations from the Economic and Financial Crimes Commission (EFCC). The EFCC claims that Emefiele approved the printing of 172,070,000 color-swapped N500 notes, totaling over N4 billion (N4,471,066,040), without necessary approvals . Additionally, he's accused of approving the printing of 137,070,000 color-swapped N200 notes, costing over N3 billion (N3,441,005,280), again without proper authorization.

Alleged Financial Irregularities:

Unauthorized Printing: Emefiele approved the printing of 375,520,000 color-swapped N1,000 notes.

Withdrawal from Consolidated Revenue Fund: He's accused of withdrawing over N124 billion (N124,860,227,865.16) without following National Assembly guidelines.

Lack of Board Recommendation: The CBN board did not recommend the printing.

No Presidential Approval: Emefiele did not obtain strict approval from the President of the Federal Republic of Nigeria.

Public Harm: The alleged misconduct caused injury to the public.

Unauthorized Printing Costs: Emefiele allegedly spent N4.471 billion on printing N500 notes and N3.441 billion on printing N200 notes.

These allegations are part of a broader case, with Emefiele facing a 20-count amended charge bordering on conferment of corrupt advantages.

However, the former Central Bank of Nigeria (CBN) governor, faces allegations of violating Section 123 of the Penal Code Law. He has pleaded not guilty to the charges.

Normal Procedures for Currency Redesign

According to Shonubi's testimony, the standard process for currency redesign involves several steps:

Initial Recommendation: The Currency Management Department suggests redesigning the currency.

Committee Review: A paper is submitted to the Committee of Governors (COG) for consideration.

Board Approval: Upon COG's approval, the proposal goes to the CBN Board.

Presidential Approval: The board then recommends the redesign to the President of the Federal Republic of Nigeria.

These procedures ensure that currency redesign decisions are thoroughly vetted and approved by the necessary authorities. Emefiele's trial is ongoing, and the prosecution alleges that his actions contravened established laws and procedures.

Folashodun Shonubi, former Deputy Governor of the Central Bank of Nigeria (CBN), revealed that the standard procedure for currency redesign involves presidential approval, followed by the setup of an internal committee to execute the redesign. However, Shonubi claimed that Godwin Emefiele, the former CBN governor, deviated from this process. Despite a recommendation from the CBN's currency department in early 2021 to redesign the naira, Emefiele instructed that the project be put on hold.

Shonubi, who served as a member of both the Committee of Governors (COG) and the CBN Board, emphasized that Emefiele's actions did not follow established protocols. Typically, the CBN's Currency Management Department would initiate the redesign process, which would then be reviewed by the COG and subsequently approved by the CBN Board. Finally, the President would give the green light, and an internal committee would oversee the implementation. However, Emefiele allegedly bypassed these steps, raising concerns about the legitimacy of the naira redesign.

“While serving as deputy governor, there was a time 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 re-presented the paper and were asked to hold.

“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 had presidential approval for currency redesign. He showed us the memo, Mr President's signature and instructions on the last page.”

A prosecution witness revealed in court that the Committee of Governors (COG) held a meeting after mid-October, where the currency department presented a memo that was approved by the COG. However, the CBN Board was only informed about the naira redesign in November, despite the four deputy governors being notified of President Muhammadu Buhari's approval earlier. Interestingly, the board never recommended the redesign, which raises questions about the legitimacy of the process.

It's worth noting that former President Buhari had publicly supported the naira redesign, but an investigation later revealed that he didn't officially approve it. This discrepancy has sparked controversy, with some accusing former CBN Governor Godwin Emefiele of bypassing established protocols. Emefiele allegedly approved the printing of new naira notes without the necessary approvals, contravening Section 19 of the CBN Act.

Folashodun Shonubi, the former Deputy Governor of the Central Bank of Nigeria, revealed that Godwin Emefiele presented the deputy governors with a document that differed from the actual naira notes produced. Specifically, Shonubi claimed that the redesigned naira notes released by the CBN under Emefiele's leadership were not the same as what former President Muhammadu Buhari approved. This discrepancy raises concerns about the legitimacy of the naira redesign process and Emefiele's actions during his tenure as CBN governor.

According to Shonubi, Emefiele showed the deputy governors a memo with President Buhari's signature, but the final product did not match the approved design. This testimony suggests that Emefiele may have bypassed established protocols and potentially undermined the authority of the President. Shonubi's statements are part of an ongoing trial, where Emefiele faces allegations of disobeying the law and causing harm to the public.