afrol News, 28 August - Nigerian President Umaru Musa Yar'Adua has ordered the immediate suspension of the country’s currency [Naira] redenomination policy announced by the Central Bank Governor, Professor Chukwuma Soludo, last week. President Yar’Adua was outraged by the Governor’s non-compliance with Section 19 of the Central Bank Act.

The President’s disgust was relayed to the press by the Attorney General, Michael Aondoakaa, who faulted Professor Soludo for flouting Section 19 (2) of the Central Bank Act.

This Act reads: “the standard weights and composition of coins issued by the Bank and the amount of remedy and variation shall be determined by the President on the recommendation of the board."

He said as a chief law officer, it is his duty to enquire whether the “presidential approval was sought or given before the redenomination policy was unveiled, but the President answered in the negative.“

The Attorney General said without getting the President’s approval in writing, the Governor’s action remains will not be legal.

"I drew the attention of Mr President to the provisions of the CBN Act of 2007 as to whether an approval was sought in accordance with the CBN Act before he (Soludo) commenced the process of re-denomination. The President, in the presence of myself and the State House Counsel denied that such an approval was sought for, and neither did he grant any approval.

"I, as the Chief Law Officer of the Federation, hereby stop all actions on the re-denomination of the Naira. This is because the action of the CBN Governor violated Section 19, sub-section 1 and 2 of the CBN Act. Therefore, the actions must abate. All actions of the CBN in the redenomination must be in accordance with the CBN Act. So, until an approval is sought for and obtained in writing from the President, all actions on the re-denomination must stop."

The Attorney General he was going to "communicate to the CBN Governor within 10 minutes, to stop all actions on the re-denomination of the Naira until he has obtained written approval from the President."

The row followed the last week announcement by Nigeria’s Central Bank that it would omit two zeros from the country’s currency or move two decimal points to the left with effect from August next year.

The implementation of the policy would have seen a strong Naira against major international currencies. Nigerian currency was devalued during the tenure of the country's military ruler, Gen. Muhammadu Buhari.

Governor Soludo was invited to brief Federal Executive Council on his policy last week. The matter was pushed to the Economic Management Team to study the policy. This team is headed by the Finance Minister, Shamsudeen Usman.

Nigerian government had earlier suspended the issuance of waivers, tax exemptions, duties and tariffs to individuals, companies or organisations, with the Finance Minister defending that the suspension is a necessity because it would plug up a number of revenue leakages which facilitated corruption in the country.

"The Comptroller-General of Customs told us that one particular waiver was granted ten times over. A lot of state governments, private sector operators and churches were being granted waivers indiscriminately. Somebody was organising a game and was asking for waivers to import 600 cars," Mr Usman said.

By staff writer

© afrol News

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