Former CBN Deputy Governor Testifies Against Emefiele in Currency Redesign Case

 

Folashodun Adebisi Shonubi, the former Deputy Governor of the Central Bank of Nigeria (CBN) overseeing operations, testified on Wednesday in the trial of ex-CBN Governor Godwin Emefiele, stating that the bank did not adhere to its established procedures for the redesign of the naira currency.

Shonubi’s testimony was presented before Justice Maryann Anenih at the High Court of the Federal Capital Territory in Abuja, as part of the prosecution's case led by the Economic and Financial Crimes Commission (EFCC). Emefiele is facing four counts of charges related to violating the CBN Act and engaging in actions that caused public harm.

The EFCC alleges that between October 19, 2022, and March 5, 2023, Emefiele approved the printing of over 375 million pieces of redesigned N1,000 notes without obtaining the necessary recommendations from the CBN board or explicit approval from the President, incurring costs of over N11 billion. Similar accusations involve the approval of 172 million N500 notes and 137 million N200 notes, totaling costs of N4.4 billion and N3.4 billion, respectively.

Additionally, Emefiele is accused of improperly withdrawing N124.86 billion from the Consolidated Revenue Fund, which allegedly violated the provisions set forth by the National Assembly, causing public injury.

During the court proceedings, Shonubi outlined the proper protocol for currency redesign at the CBN. He explained that the Currency Management Department is responsible for initiating recommendations, which are then reviewed by the Committee of Governors (COG) and subsequently forwarded to the CBN Board before reaching the President for approval.

Shonubi mentioned that although there had been a recommendation for a naira redesign in early 2021, Emefiele instructed that the proposal be put on hold. He recounted that in October 2022, during a meeting with the deputy governors, Emefiele claimed to have received presidential approval for the currency redesign, presenting a memo with the President's signature.

However, Shonubi noted that despite the COG approving the redesign, the CBN Board did not formally recommend the changes. He highlighted discrepancies between what Emefiele presented to the deputy governors and the final outcomes of the redesign process.

Emefiele has pleaded not guilty to all charges against him as the trial continues.