CBN board didn’t recommend Naira redesign to Buhari, witness tells court in Emefiele’s trial

Mr Emefiele and Mr Buhari adamantly stuck to the Naira redesign policy despite the chaos, widespread disruption it caused weeks to the 2023 general elections and severe pains it inflicted on people.

A former deputy governor of the Central Bank of Nigeria (CBN), Kingsley Obiorah, told the Federal Capital Territory (FCT) High Court in Abuja Thursday that the bank’s board never recommended Naira redesign to former President Muhammadu Buhari.

Mr Obiorah testified virtually as the fifth prosecution witness at the resumed hearing in the ongoing trial of the former Governor of the CBN, Godwin Emefiele.

Mr Emefiele faces four charges, including illegal redesign of Naira notes, disobedience to the direction of law and illegal act causing injury to the public.

With the backing of then-President Buhari’s backing, the Mr Emefile-led CBN introduced new N200. N500, and N1,000 notes and vigorously mopped up their old versions from circulation under the controversial currency redesign policy. This led to severe cash shortage, causing significant hardship for the public..

He pleaded not guilty when the Economic and Financial Crimes Commission (EFCC) arraigned him before the trial judge, Maryanne Anenih, earlier this year.

Led in evidence by EFCC’s lawyer, Rotimi Oyedepo, a Senior Advocate of Nigeria (SAN), Obiorah, said that he once served as Special Adviser to Mr Emefiele on economic matters.

The prosecution witness, who later became deputy governor, said the CBN board first heard of the Naira redesign policy on mid-December 2022.

“To the best of my recollection, the first day this policy (Naira redesign) was discussed at the board meeting was mid-December 2022. I think it was around 15 December 2022.

“The governor (Emefiele) invited the Deputy Governor, Operations, and Director, Currency Operations, to present that same memo that the Committee of Governors (COG) saw in October. He also informed the board of the President’s approval.

“I do not recollect any instance where the board made recommendation for Naira redesign to the President. The board did not recommend the Naira redesign.”

Mr Obiorah, testified as the fifth prosecution witness (PW5).

He earlier told the court that Mr Emefiele informed the four CBN deputy governors of the Naira redesign policy at an event in Lagos on 25 October 2022, adding that they advised him against announcing the policy at the event.

“On that day, we were in Lagos to commemorate the first year anniversary of the digital currency, E-Naira. During the break between the first two sessions of the event, the governor (Emefiele) called the four deputy governors and informed us of plans to redesign the currency.

“He was contemplating to announce it that day at the event. My personal reaction was that the event may not be the appropriate place. That was the first time I became aware of the plan.

“Secondly, my comment was that we would need time to study the policy and make inputs,” the witness told the court.

According to the witness, Mr Emefiele told the four deputy governors that the reason behind the secrecy of the redesign policy was to ensure its effective implementation.

He said that on 26 October 2022, the defendant the deputy governor in charge of operations, Ade Shonubi, circulated and presented a memo for Naira redesign.

“The Deputy Governor, Operations, presented the memo to the COG and it was deliberated on. During the discussion, the governor mentioned that he got the approval of the President for the policy.

“After the COG meeting, the governor and two deputy governors joined a news conference to announce the policy to the public. All this happened on 26 October 2022,” he told the court.

Cross-examination

Under cross-examination by the defence lawyer, Olalekan Ojo, a SAN, the witness confirmed that he had previously worked as technical adviser to former President Goodluck Jonathan.

He said at its 15 December 2022 meeting, the CBN board ratified the decision of the COG on Naira redesign policy, saying , “this ratification is in respect of the redesigned Naira already in circulation.”

The prosecution witness also said he was aware of instances of presidential approval for disbursement of funds to Chad, Niger Republic and the military, which the CBN complied with.

“Such (presidential) request would come to the governor. He would usually let the committee (COG) know and it would be implemented before the board got to know.”

He added that when he was invited by the EFCC, he was never shown documents from former President Buhari or any officials from the presidency complaining about the redesigned Naira notes already in circulation.

He confirmed that one of the reasons for currency redesign was to combat currency trafficking and hoarding.

After the witness finished his testimony, the judge adjourned further heariing until 4 December.

Naira redesign

The unpopular Naira redesign policy marks one of the darkest periods of former President Buhari’s administration, causing a severe shortage of currency notes and inflicting significant hardship on many Nigerians during the first two months of 2023.

Mr Emefiele and Mr Buhari remained adamant in implementing the policy even as it triggered chaos and widespread disruption amid preparations for the 2023 general elections. They touted the policy to stop vote buying during the elections.

But despite the policy being in force, cases of vote buying were recorded during the 25 February 2023 presidential and National Assembly elections.

.Mr Buhari staunchly defended the policy to the extent of ignoring an interim order of the Supreme Court suspending its implementation. On 8 February 2023, the Supreme Court ordered that both the old notes and their newly designed versions should remain legal tender pending further hearings in the suit. But in violation of the court’s order, Mr Buhari, in a broadcast on 16 February, restored the validity of the old N200 notes and insisted that the old N500 and N1,000 banknotes had ceased to be valid.

The case was finally laid to rest when the Supreme Court gave its final judgement on 3 March 2023 nullified Mr Buhari’s directive withdrawing the old naira notes and extended their validity till 31 March. The Supreme Court also adjudged Mr Buhari a disobeyer of court order, citing his violation of its earlier interim order suspending the implementation of the naira redesign policy.