In a statement made on Wednesday to Justice Maryann Anenih of the High Court of the Federal Capital Territory, FCT, Maitama, Abuja, the immediate former Deputy Governor of the Central Bank of Nigeria, CBN, in charge of Operations, Folashodun Adebisi Shonubi, claimed that the apex bank, while led by Godwin Emefiele, failed to adhere to its established protocols when redesigning its currency.
Shonubi made this statement while he was testifying on behalf of the prosecution in the trial of Emefiele, the former governor of the Central Bank of Nigeria (CBN). Emefiele is facing four counts of charges related to public injury and disobedience to law enforcement, brought forth by the Economic and Financial Crimes Commission (EFCC).
Charged with disobeying the direction of Section 19 of the CBN Act, Emefiele printed 375,520,000 pieces of color swapped N1,000 notes at a total cost of N11,052,068,062 between October 19, 2022 and March 5, 2023, according to the anti-graft agency’s allegation (CR/264/2024). This action was taken without the recommendation of the CBN board and strict approval of the President, Federal Republic of Nigeria, and it injured the public.
There are allegations that the former head of the CBN approved the printing of 172,070,000 N500 notes with color swaps, costing a total of N4,471,066,040. Additionally, he was said to have authorized the printing of 137,070,000 color-swapped N200 notes, with a total cost of N3,441,005,280.
The EFCC went on to say that Emefiele was in violation of Section 123 of the Penal Code since he gave the go-ahead to take N124,860,227,865.16 out of the CRF of Federation in a way that wasn’t authorized by the National Assembly, which hurt the people.
As stated by the prosecution, the defendant was accused of violating Section 123 of the Penal Code Law, Cap 89 Laws of the Federation, 1990, which carries a punishment of the same kind.
Yet, he entered a not guilty plea in response to the allegations that were brought against him.
During Wednesday’s proceedings, Shonubi informed the court that the standard procedure for currency redesign at the CBN is for the top bank’s Currency Management Department to propose changes, and then the COG would review a document outlining those changes.
He elaborated by saying that after COG gives its OK, it moves to the CBN Board, which will then advise Nigeria’s president.
The bank would organize an internal committee to carry it out, he said, following receipt of the president’s consent.
According to Shonubi, who claimed to have served as a deputy governor and member of the CBN Board, Emefiele directed that the currency department of the CBN redesign the naira in early 2021, despite a recommendation to the contrary.
He claims that the naira was redesigned during his term as deputy governor. In 2022, that happened. When reworking the naira, the CBN did not adhere to protocol.
While serving as deputy governor, I was a member of the CBN Board. Oversight of the COG and board was performed by the governor.
“The currency department suggested a redesign of the currency notes in early 2021, before 2022 even happened. The governor, Emefiele, ordered the removal of a document that had been brought to my attention. Our request to hold came after we re-presented the document in 2022.
During a meeting with the deputy governors in the governor’s office in mid-October 2022, Emefiele informed them that he had presidential approval for a redesign of the currency. On the last page of the document, he displayed Mr. President’s signature and instructions.
According to the prosecution witness, the currency department produced a document at the following COG meeting, which was accepted, after the meeting in mid-October.
The COG also informed the CBN Board at its meeting in November.
Although the four deputy governors were apprised of the president’s consent before the COG met, he informed the court that the board did not endorse the redesign of the naira.
According to the witness, the final product differed from what Emefiele initially presented to the deputy governors.