The Central Bank of Nigeria (CBN) has denied claims of plans to redenominate the naira, with effect from January 2024.
CBN’s Director of Corporate Communications, Isah AbdulMumin, said this in a statement he issued on Tuesday, October 31.
According to investopedia, redenomination is the process of changing the value of a currency, typically due to hyperinflation or when a new currency is adopted.
The CBN’s statement came amid continued plummeting of the naira against the US dollars.
The naira, according to the World Bank’s latest Africa’s Pulse report has experienced nearly a 40 per cent depreciation in 2023, making it one of the worst-performing currencies in Sub-Saharan Africa.
“To avoid doubt, there is currently no plan by the Bank to restructure and redenominate the naira. Whilst the Bank may be considering reforms, such are subject to laid down procedures in line with the provisions of the CBN Act, 2007.
“The public is hereby advised to ignore the news report, as it is speculative and calculated to cause panic in the polity,”part of the statement read.
The naira has tumbled to record low against the dollar, putting further pressure on President Bola Tinubu as he tries to reform Africa’s largest economy.
Tinubu took the reins of power in May, pledging to break with the policies of his predecessors and attract foreign investment to Nigeria. Allowing the naira to float more freely against the dollar was part of that agenda.
But the currency has continued its slide ever since. It slumped as low as N880 to the dollar on the official market this week, according to data from LSEG. This has bumped up the cost of crucial imports and helped to stoke inflation, while investors have yet to be persuaded by the reforms.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.