The immediate past Deputy Governor of the Central Bank of Nigeria, CBN, in charge of Operations, Folashodun Adebisi Shonubi, on Wednesday told Justice Maryann Anenih of the High Court of the Federal Capital Territory, FCT, Maitama, Abuja, that the apex bank under Godwin Emefiele leadership did not follow its laid down procedures for currency redesign.
Shonubi said this while testifying for the prosecution in the ongoing trial of the former CBN governor, Emefiele, who is being prosecuted by the Economic and Financial Crimes Commission, EFCC, on a four-count charge bordering on disobedience to the direction of law and illegal act causing injury to the public.
The anti-graft agency alleged in charge, marked CR/264/2024, that Emefiele, between October 19, 2022 and March 5, 2023 disobeyed the direction of Section 19 of the CBN Act by approving the printing of 375,520,000 pieces of colour swapped N1,000 notes at a total cost of N11,052,068,062 without the recommendation of the CBN board and strict approval of President, Federal Republic of Nigeria, a conduct which caused injury to the public.
The former CBN chief is accused of approving the printing of 172,070,000 pieces of colour swapped N500 notes at a total cost of N4,471,066,040. He was further accused of approving the printing of 137,070,000 pieces of colour swapped N200 notes at the cost of N3,441,005,280.
EFCC further alleged that Emefiele approved the withdrawal of N124,860,227,865.16 from the Consolidated Revenue Fund of Federation in a manner not prescribed by the National Assembly which caused injury to the public , contrary to Section 123 of the Penal Code.
The offenses, allegedly committed by the defendant, according to the prosecution, were contrary to Section 123 of the Penal Code Law, Cap 89 Laws of the Federation, 1990, punishable under the same law.
He, however, pleaded not guilty to the charges preferred against him.
At Wednesday’s proceedings, Shonubi told the court that the normal CBN procedures of currency redesign were for the Currency Management Department of the apex bank to make recommendation to the effect of redesign after which a paper would be submitted to the Committee of Governors, COG, of the bank for consideration.
He added that upon COG’s approval, it goes to the CBN Board, which would in turn make recommendation to the President of the Federal Republic of Nigeria.
He informed that after the President’s approval is received, the bank would then set up an internal committee to execute it.
Shonubi, who said that he was a member of both COG and CBN Board as a deputy governor, said despite a recommendation of the currency department of CBN in early 2021 for naira redesign, Emefiele instructed that it should be stepped down.
According to him: “While serving as deputy governor, there was a time naira was redesigned. That was in 2022. The CBN did not follow the procedures (for redesigning the naira).
“I was a member of CBN Board as deputy governor. The chairman of both the COG and board was the governor.
“Prior to 2022, in early 2021, the currency department recommended the redesign of the currency notes. A paper was presented to me and on the instruction of the governor (Emefiele), it was stepped down. In 2022, we again re-presented the paper and we’re asked to hold.
“In mid October, 2022 the deputy governors were invited to a meeting in the office of the governor whereby he (Emefiele) informed us that he has presidential approval for currency redesign. He showed us the memo, Mr President’s signature and instructions on the last page.”
The prosecution witness told the court that it was after the mid October meeting, that the COG held it next meeting where the currency department presented a memo which was approved by the COG, adding that the CBN Board was informed in November at its meeting.
He told the court that while the COG held its meeting after the four deputy governors had been informed of the President’s approval, the board did not recommend the naira redesign.
The witness added that what Emefiele showed the deputy governors was different from what was eventually produced.
Emefiele didn’t follow procedures for currency redesign – Ex-CBN dep gov tells court