By Hassan Zaggi
The Head of Economics Department, Bingham University, Auta Balefi, Associate Professor Abayomi Awujola, has thrown his weight behind the federal government’s decision to suspend the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele.
In an interview with journalists, he said the decision is aimed at ensuring accountability, maintaining public confidence, and safeguarding the stability of the nation’s financial sector.
He noted that the federal government’s decision to suspend the CBN governor was timely, emphasizing that there was the need to rectify any wrongdoing promptly.
When asked about the possible connection between the governor’s suspension and his involvement in the cash policy and the redesign of the Naira notes during the last elections, Professor Awujola acknowledged that cash policy is generally welcomed worldwide but questioned the timing and implementation process.
The Don said that there is the possibility that allegations or concerns relating to the governor’s manner and way he handled the naira redesign policy and its negative impact on the economy, could have contributed to his suspension. He reiterated the need to promptly investigate the matter and other related issues in the CBN to ensure transparency and maintain public trust.
Regarding the CBN’s action in the redesign of the Naira notes, Professor Awujola highlighted that it falls within the central bank’s responsibility to manage the currency system, explaining that currency redesigns often aim to enhance security features, durability, aesthetics, and anti-counterfeiting measures.
The decision to redesign the Naira notes, according to him, is part of the Central Bank’s efforts to create a more secure and culturally reflective currency.
Regarding the governor’s potential compliance with superiors’ instructions, Professor Awujola said that the CBN governor operates within the central bank’s mandate and regulatory requirements.
While the governor may receive instructions or policy directives from government officials, the Don emphasized the need for actions to align with the central bank’s objectives of maintaining price stability, promoting financial stability, and fostering economic growth.
Delving into the impact of the Naira note redesign announcement on the Nigerian economy, Professor Awujola outlined several potential effects.
Some of them, he said, include “cost implications for the central bank, the potential enhancement of public confidence and trust in the currency, the need for a smooth transition period during the circulation of old and new notes, and the possibility of indirect economic effects if the redesign accompanies broader economic reforms.”
Professor Awujola highlighted the importance of efficient communication, coordination, and consideration of the country’s peculiar circumstances, such as infrastructure challenges and illiteracy rates.
He mentioned that the redesign should be accompanied by measures to minimize disruptions to economic activities and transactions.
“The ongoing investigation into the Central Bank Governor’s office and the reforms implemented in the financial sector represents a crucial step in ensuring transparency, accountability, and effective governance within Nigeria’s monetary landscape.
“The outcome of the investigation will determine the appropriate course of action, with the ultimate goal of restoring trust and reinforcing the central bank’s role in driving economic stability, growth, and development in Nigeria,” the Don reiterated.
