By Nigeria’s President, Bola Tinubu, announced on Monday that he will review the Naira redesign policy introduced by his predecessor, Muhammadu Buhari.
Tinubu made this statement during his inauguration address as Nigeria’s 16th president at Eagles Square, Abuja.
He highlighted that the Naira redesign policy implemented by the Central Bank of Nigeria (CBN) did not adequately consider the number of unbanked Nigerians.
“The monetary policy requires thorough restructuring. The Central Bank must strive for a unified exchange rate to redirect funds towards meaningful investments in the real economy, such as plant, equipment, and job creation,” stated Tinubu.
“To stimulate investment and consumer spending, interest rates need to be lowered, allowing the economy to thrive at a higher level. While the currency swap had its merits, the CBN’s implementation was too severe, particularly considering the significant number of unbanked Nigerians.”
Tinubu pledged to conduct a comprehensive review of the policy, while ensuring that both the old and new currencies remain legal tender in the interim.
In February, Buhari declared that only the old 200 naira note would be accepted as legal tender until December 2023, and he insisted that the old 500 and 1000 notes would no longer be valid.
However, in March, the Supreme Court deemed the naira redesign policy by the CBN invalid, as it violated the 1999 Constitution.
Despite the court’s ruling, cash scarcity persisted nationwide, leading to a halt in commercial activities.
Amidst the cash crunch and Buhari’s silence on the matter, there were suggestions that CBN Governor Godwin Emefiele was acting under the President’s instruction to disregard the Supreme Court’s order.
The Presidency later clarified that former President Buhari had not instructed the CBN to defy the Supreme Court, emphasizing his commitment to upholding the rule of law.
“Since assuming office in 2015, the President has never knowingly or deliberately directed anyone to disregard court orders. Upholding democracy requires adherence to the rule of law, and his administration remains committed to this principle,” the statement read.
