AFRICA

Fashola: CBN Legally Empowered for Currency Swap, Not Currency Mop-Up

The Minister For Works and Housing, Babatunde Raji Fashola (SAN), has said that the Central Bank of Nigeria has only the legal autonomy to exchange, not mop up, the old currency.

In an interview with Arise News on Wednesday, February 22nd, he said, “The Central Bank clearly has powers under Section 23 to redesign currency, but that process is a swap, not to say, bring all your money. The law did not envisage that at all, and to that extent, it is outside the law.”

The former governor of Lagos state further explained, from his interpretation of the law in Section 23, that the Central Bank does have the autonomy to redesign and swap the currency, however, it has to be a gradual process where for every new note produced, it has to be exchanged with the old currency, until the old currency is taken out of circulation. However, this process was not followed, as the Central Bank instructed Nigerians to submit their old 1000, 500, and 200 Naira notes, while the new denominations were not fully circulated across the country. He stated, “It is one thing to have an authorization on the face of the letter of the law, and then proceed to do something that is contrarian to law.”

Ozioma Ugwuezi

Follow us on:

AriseNews

Recent Posts

Gbadebo Rhodes-Vivour: Commercialisation Of GMO Seeds Can Take Away Nigeria’s Food Sovereignty, Cause Health Issues

Gbadebo Rhodes-Vivour has condemned the commercialisation of GMO seeds, warning of threats to Nigeria’s food…

13 hours ago

Usyk Defeats Fury on Points in Riyadh to Retain Heavyweight Championship Title

Oleksandr Usyk has secured victory over Tyson Fury in Riyadh, successfully defending his heavyweight championship…

18 hours ago

Albania to Ban TikTok for a Year After Schoolboy’s Death Sparks Concerns

Albania plans a one-year TikTok ban from January after a schoolboy’s death sparks concerns over…

21 hours ago

Suspect Remanded in Custody Over Deadly Attack at German Christmas Market

A suspect accused of killing five people by driving into a crowded Christmas market in…

21 hours ago

US Fighter Jet ShotDown in Red Sea ‘Friendly Fire’ Incident Amid Heightened Tensions

A US Navy F/A-18 Hornet was mistakenly shot down over the Red Sea by the…

22 hours ago

NNPC, Dangote Refinery Slash Petrol Prices to N899 Per Litre Amid Rising Competition

NNPC has reduced petrol ex-depot price to N899 per litre, sparking competition with Dangote Refinery…

22 hours ago