CBN: After Yar’Adua made his point… Consistency in policy adoption and implementation is a hallmark of all successful governments. When
President Umar Musa Yar’Adua applied the brakes recently on the efforts of the Central Bank (CBN) to have the
naira redenominated, saying that the apex bank did not seek for his written approval, his
decision was consistent with his pronouncement to run not only a transparent administration but one that respects due process as well as follow the rule of law. Yet, those are not the only issues that the President’s decision underlined. It cannot be taken away from the president that he is making efforts to assemble a team of good advisers. A good comment must be made as regard this on the Minister of Justice Mr Mike Aondoakaa who appears to have advised the president to ensure that not only the EFCC but lately the CBN carry out their duties in line with constitutional provisions. For that was the position from which he spoke when he announced on behalf of the President the suspension of the CBN’s redenomination initiative. That a constitutional
provision was not duly followed in the first place is an anomaly that should be corrected. On that score, the president’s decision to suspend the
CBN initiative for the moment can be understood. And this is because the move has a wider positive implication for the polity. A reign of steps that were inconsistent with the constitution has been witnessed in this land. Such has been part of what led the
nation to its present condition as office holders did as it seemed right to them but mostly for some selfish reasons and to the detriment of the nation. But now the president has sent a warning signal abroad: due process must be followed whatever may be the case. There is also another advantage to the decision of Mr President. The CBN’s redenomination initiative has been criticized in some quarters as just a manipulation of the naira rather the all important productive sector of the economy which, it is said, in the long run will lead to a rise in the value of the naira. It is also argued that simply removing two zeros from the current value of the naira as the CBN wanted to do cannot in the long run prove successful as the other necessary economic indices such as good infrastructural facilities, low level of unemployment, provision of adequate energy and power are not in place. There is only one meaning that can be read to this: a big need exists for the CBN’s initiative to be consistent with every other economic activities and economic initiatives that the current administration may want to implement. Now this is a serious angle for consideration.
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