Emefiele: Naira redesign was to combat currency trafficking and hoarding – witness tells court

A former deputy governor of the Central Bank of Nigeria (CBN), Kingsley Obiorah, on Thursday has said that Naira redesign redesign was meant to combat currency trafficking and hoarding. He also said the board of the apex bank did not recommend the 2022 Naira redesign to former President Muhammadu Buhari.

Obiorah said this while testifying virtually before the FCT High Court at the resumed hearing  in the ongoing trial of the suspended governor of the CBN, Godwin Emefiele.

Emefiele is standing trial before Justice Maryanne Anenih, on  four-count charge bordering on disobedience to the direction of law and illegal act causing injury to the public.

Emefiele is being prosecuted by the Economic and Financial Crimes Commission (EFCC), on behalf of the Federal Government, in the charge, marked FCT/HC/CR/264/2024.

He however pleaded not guilty to the charge .

Led in evidence-in-chief by the prosecution counsel, Mr Rotimi Oyedepo SAN, Obiorah, said that he ounce served as Special Adviser to Emefiele on Economic Matters.

Obiorah, who later became deputy governor, said the CBN board first heard of the Naira redesign policy on Dec. 15, 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 Dec. 15, 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 Nairan redesign to the President. The board did not recommend the  Naira redesign.”

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

He earlier told the court that Emefiele informed the four CBN deputy governors of the Naira redesign policy at an event in Lagos on Oct. 25, 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 Obiorah, Emefiele told the four deputy governors tha the reason behind the secrecy of the redesign policy was to ensure its effective implementation.

He said that on Oct. 26, 2022, the defendant the deputy governor in charge of operations, Mr 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 Oct. 26, 2022,” he told the court.

Under cross examination by counsel for Emefiele, Olalekan Ojo SAN, the witness confirmed that he had previously worked as technical adviser to former President Good luck Jonathan.

He said at its Dec. 15, 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 PW5 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 get to know.”

He added that when he was invited by the EFCC, he was never shown and 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 his evidence, Justice Anenih adjourned further hearing until Dec. 4.