The Press release from Charles Soludo was released yesterday and Yar'adua's statement of trust was issued today, and our original story tell's it all.
CENTRAL BANK OF NIGERIA
August 27, 2007
PRESS STATEMENT
SUSPENSION OF THE REDENOMINATION OF THE NAIRA
For the good of the country, the President and Commander in Chief of
the Armed Forces of the Federal Republic of Nigeria, Alhaji Umaru
Musa Yar’Adua, GCFR, has spoken on the policy issue of the redenomination
of the Naira.
The Board of the Central Bank of Nigeria (CBN) recognises and
reaffirms Mr. President’s approving authority in matters relating to the
denomination, forms and design of our national currency, as enshrined in
Section 19 of the CBN Act 2007.
The Bank therefore accepts Mr. President’s decision to suspend the
implementation of the redenomination aspect of the “Strategic Agenda
For The Naira”.
The CBN remains committed to President Umaru Musa Yar’Adua,
GCFR and his avowed goal of making Nigeria one of the twenty largest
economies in the world by the year 2020. To this effect, CBN is
committed and ready to do all that is within its mandate and powers to
accelerate Mr. President’s agenda for a stronger Nigerian economy.
Finally, we wish to thank all Nigerians for their understanding, and the
healthy and positive contributions to the policy debate.
Prof. Chukwuma C. Soludo, CFR
Soludo Retains My Trust - Yar'Adua
Nigeria First (Abuja)
PRESS RELEASE
28 August 2007
Posted to the web 28 August 2007
Abuja
Against the background of the suspension of the Central Bank of Nigeria's plans for the re-domination of the Naira and the various comments and speculations that have followed, President Umaru Musa Yar'Adua wishes to affirm that he retains his trust and confidence in the competence and ability of Prof Chukwuma Soludo to manage the CBN professionally, efficiently and effectively.
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Furthermore, President Yar'Adua wishes to emphasize that his Administration fully recognizes and will continue to respect the autonomous powers granted the Board and Governor of the Central Bank of Nigeria by the CBN Act, 2007.
GA_googleFillSlot("AllAfrica_Other_Inset");It is the President's expectation that under Prof. Soludo's leadership, the Central Bank of Nigeria will continue to make immense and significant contributions to the Federal Government's efforts to accelerate the pace of economic development in Nigeria.
In this regard, all programmes and policy initiatives of the bank which fall within the ambit of its powers and authority, as enshrined in the CBN Act, 2007 and other relevant laws, will continue to have the full support and approval of President Yar'Adua.
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Olusegun Adeniyi
SA to the President
OUR ORIGINAL STORY:
Embattled Charles Soludo, Nigeria’s Central Bank Governor, is reportedly in panic mode in a bid to save his job.
Soludo cut short a vacation in London to return to Abuja to begin the uphill—and one source said impossible task—of mending the rift with Umar Yar’Adua, the current occupant of Aso Rock, Nigeria’s seat of power.
Two weeks ago, Soludo raised a storm of controversy in local and international financial circles with an announcement of plans to re-denominate the naira to bring it to closer parity with the dollar.
While the proposed measure had its champions and critics, a large part of the controversy had to do with the governor’s apparent decision to announce the policy without national debate, or even consultation with interest groups.
Piqued by Soludo’s unilateral approach, Yar’Adua last week ordered the suspension of the exercise. In a statement, Attorney General Michael Aaoondarka ripped Soludo in an uncharacteristically harsh, undiplomatic language. Charging Soludo with presumption, the attorney general revealed that the CBN governor had not only failed to obtain presidential approval but had also argued erroneously that he did not need one.
The tone of the attorney general’s rebuke—and an even harsher scolding from presidential spokesman Segun Adeniyi alleging insubordination—suggested that Soludo was all but finished.
Realizing this, the CBN governor has been running round in circles to save his job.
For the last two days, he has remained in Abuja trying hard to meet Yar’Adua. Initially rebuffed by Yar’Adua, Soludo reportedly became more desperate. A break came only last night when, after pleading Yar’Adua’s deputy, Jonathan Goodluck, he was finally led to see Yar’Adua.
Yar’Adua. After listening to his pleas for sometime,u003cbr />Yar’Adua asked Soludo to tell him the cost of the newu003cbr />naira policy. A bewildered Soludo could not provideu003cbr />any tangible answers, but merely stated that it wouldu003cbr />be “cheaper in the long run.”u003cbr />His response seemed to justify rumors at Aso Rock thatu003cbr />part of Soludo’s motive was to corner huge kickbacksu003cbr />for himself. The new Finance Minister, Dr. Shamsudeen,u003cbr />reportedly told Yar’Adua that Soludo had made a lot ofu003cbr />money from the last minting of new notes and coins.u003cbr />Despite Soludo's public statements that Nigeria wasu003cbr />capable of minting its own currencies by the end ofu003cbr />2006, it was discovered that he had secretly invitedu003cbr />bids from companies abroad for the minting of theu003cbr />re-denominated naira. Yar’Adua and his aides wereu003cbr />shocked to learn that representatives of the mintingu003cbr />companies had arrived for the bidding slated for todayu003cbr />(August 27) at the CBN in Lagos.u003cbr />Despite the government’s grave concerns about Soludo’su003cbr />action, the reconciliatory meeting may have sparedu003cbr />him—in the short run. He is expected to make au003cbr />statement today apologizing to Yar’Adua. In return,u003cbr />Yar’Adua may issue a statement indicating hisu003cbr />continued confidence in Soludo.u003cbr />What will become the fate of the naira policy in viewu003cbr />of the truce remains unresolved.u003cbr />u003c/div>",1] ); //--> Saharareporters learnt that Soludo wheedled and cajoled and was virtually on his knees before Yar’Adua. After listening to his pleas for some time, Yar’Adua asked Soludo to tell him the cost of the new naira policy. A bewildered Soludo could not provide any tangible answers, but merely stated that it would be “cheaper in the long run.”
His response seemed to justify rumors at Aso Rock that part of Soludo’s motive was to corner huge kickbacks for himself. The new Finance Minister, Dr. Shamsudeen, reportedly told Yar’Adua that Soludo had made a lot of money from the last minting of new notes and coins.
Despite Soludo's public statements that Nigeria was capable of minting its own currencies by the end of 2006, it was discovered that he had secretly invited bids from companies abroad for the minting of the re-denominated naira. Yar’Adua and his aides were shocked to learn that representatives of the minting companies had arrived for the bidding slated for today (August 27) at the CBN in Lagos.
Despite the government’s grave concerns about Soludo’s
action, the reconciliatory meeting may have spared
him—in the short run. He is expected to make a
statement apologizing to Yar’Adua.
What will become the fate of the naira policy in view of the truce remains unresolved.
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