A former Deputy Governor of the Central Bank of Nigeria (CBN), Kingsley Obiorah, testified yesterday in the trial of former CBN Governor Godwin Emefiele, revealing that the apex bank’s board did not recommend the 2022 Naira redesign policy to then-President Muhammadu Buhari.
However, Obiorah stated that the CBN Board and the Committee of Governors (CoG) subsequently ratified the presidential approval for the redesigned naira notes.
Obiorah appeared as the fifth prosecution witness (PW5) for the Economic and Financial Crimes Commission (EFCC) in the trial before Justice Maryanne Anenih at the High Court of the Federal Capital Territory, Maitama, Abuja. The EFCC had arraigned Emefiele on May 15, 2024, on a four-count charge, which he denied, securing bail of ₦300 million.
Key Testimony Highlights
Naira Redesign Policy Timeline
Obiorah testified that he first became aware of the Naira redesign plans during an event in Lagos on October 25, 2022, marking the first anniversary of the digital currency, e-Naira. He said that Emefiele informed the four CBN deputy governors during a break at the event about the proposed redesign.
According to Obiorah:
“He [Emefiele] was wondering if he was going 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.”
Obiorah said the CoG formally discussed the policy during a meeting on October 26, 2022, where Emefiele revealed he had already obtained presidential approval. Shortly after the meeting, Emefiele and two deputy governors announced the policy at a press conference.
Ratification by the CBN Board
Under cross-examination by Emefiele’s lawyer, Olalekan Ojo (SAN), Obiorah confirmed that the CBN Board ratified the CoG’s decision on the Naira redesign during a meeting on December 15, 2022. However, he emphasized that the board’s ratification pertained to the redesigned naira already in circulation.
“To the best of my recollection, the first day this policy was discussed at the board was mid-December, 2022. The governor invited the deputy governor, Operations, and the Director, Currency Operations, to present the memo that the CoG had seen in October.”
He clarified that the CBN Board had not originally recommended the redesign policy to the president.
Implementation of Presidential Requests
Obiorah admitted that the CBN CoG often implemented presidential requests before informing the board, citing examples such as disbursements to Niger Republic, Chad, Cameroon, and the Nigerian military. He explained:
“Such requests would come to the governor. He would usually let the committee know, and it would be implemented before the board gets to know.”
Objectives and Secrecy of the Policy
The witness told the court that Emefiele justified the redesign’s secrecy to prevent currency hoarding and trafficking. He stated that one of the goals of the redesign was to curb illicit financial activities.
CBN: EFCC’s Case Against Emefiele
The EFCC has accused Emefiele of embarking on the naira redesign policy without proper authorization from the CBN Board and the president. Specifically, the prosecution alleges that:
- Emefiele approved the printing of new naira notes without the board’s recommendation.
- His actions caused injury to the public, constituting a criminal offence.
The court adjourned the case to December 4, 2024, for the continuation of the trial.
This case remains a pivotal legal battle with significant implications for Nigeria’s financial sector and the institutional roles of the CBN and its leadership.
