The Central Bank of Nigeria (CBN) has confirmed that it does not have any plans to redenominate the Nigerian currency, the Naira. CBN’s Director of Corporate Communications, Isa AbdulMumin, made this statement in Abuja and urged Nigerians to disregard a text message circulating that suggests the bank intends to introduce a new currency in January 2024.
The CBN expressed concern that this false narrative is gaining traction and causing debates about its implications for the Nigerian economy. The bank emphasized that the contents of the message are misleading and clarified that there are no plans to restructure or redenominate the Naira. Any reforms being considered will follow established procedures in accordance with the CBN Act of 2007.
The CBN urged the public to ignore the speculative news report, which is intended to create panic. In the meantime, the Naira’s unofficial exchange rate stood at N1,162 to one US dollar, with varying rates against other foreign currencies. Additionally, the Federal Government is taking steps to stabilize the foreign exchange market to determine the Naira’s true value by the end of the year.
The government is focusing on implementing transparent rules for the official market and addressing a backlog of dollar demand, estimated at $6.7 billion, while introducing new foreign exchange rules, including measures against illicit currency trading. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, sees these measures as effective in improving forex supply but emphasizes the need for more sustainable solutions, including boosting exports and addressing domestic production issues related to petroleum products.
