In a significant testimony, Folashodun Shonubi, a former acting Governor of the Central Bank of Nigeria (CBN), shed light on the controversial naira redesign exercise of 2022 during a trial in the Federal Capital Territory High Court in Abuja. Shonubi, who has a long tenure at the CBN and served as the Deputy Governor of Operations prior to being appointed as the acting Governor, suggested that the naira redesign was marred by political undercurrents and intrigue. His testimony arose in the ongoing trial of the ex-CBN Governor, Godwin Emefiele, underlining the complexities surrounding the leadership and decision-making within Nigeria’s financial institution at a pivotal moment just before the 2023 general elections.
Shonubi made clear that he believed the naira redesign under Emefiele deviated from the original plans approved by former President Muhammadu Buhari. He stated outright that the redesigned notes produced by the CBN were not in line with what Buhari had authorized. Although the intricacies of the political maneuvering during the redesign exercise were not fully detailed in his testimony, Shonubi acknowledged that discussions among CBN leadership indicated a political dimension to the currency alteration. He testified that he was not privy to all communications between Emefiele and Buhari, emphasizing that Emefiele was responsible for the interactions regarding the naira redesign.
According to Shonubi, presidential approval for the redesign existed but came into question when he revealed discrepancies between the approved design and what the CBN eventually produced. He refuted any claim that there had been protests from within the CBN or its governing bodies against the President’s directive, which he had not encountered. Alongside his eyewitness testimony, he underscored that the procedure typically walked through various organizational channels before receiving the President’s green light, a process he indicated Emefiele bypassed in preparing the memo for Buhari.
The detailed procedure typically involves recommendations from the Currency Management Department, suggestions from the Committee of Governors (COG), and endorsements from the CBN Board before finalizing and executing any currency redesign. However, in this scenario, Shonubi claimed these protocols were sidelined by Emefiele, leading to speculation of improper procedural adherence. He reiterated that the only instance of currency redesign he participated in was in 2022, amplifying concerns about the governance and process-related discrepancies that unfolded under Emefiele’s leadership.
Shonubi made an intriguing revelation about a prior suggestion for currency redesign initiated by the Currency Department in early 2021. He stated that Emefiele had the Governor’s instruction to halt that proposal, which raises questions about the decision-making processes within the CBN and Emefiele’s influence over such pivotal matters. This context informs the understanding of potential agendas and interests that might have played a role in the dramatic pivot taken in 2022. During mid-October 2022, Emefiele convened a meeting informing his deputies of having received a presidential mandate for the redesign, thus indicating a rapid turn of events following previous rejections.
Following the court sessions, which revealed deep organizational contrasts and tensions within the CBN during Emefiele’s tenure, the court adjourned, scheduling the next hearing for October 9. Shonubi’s testimony provides a critical lens through which to view the intertwining of currency policy, politics, and the operational integrity of the CBN. Observers await how these legal proceedings will unveil further implications for Nigeria’s monetary policy landscape and shed light on the future governance of its central banking authority, particularly in the aftermath of such tumultuous political and economic verdicts.
