Aluko criticises redenomination of naira
By Femi Makinde
Published: Thursday, 23 Aug 2007

Culled from The PUNCH "A renowned economist and former Chairman of the National Economic Intelligence Committee, Prof. Sam Aluko, has criticised the redomination of naira recently announced by the Central Bank Governor, Prof. Charles Soludo.He said that the policy would severely disrupt the economy because it would fuel inflation by 100 per cent.

Aluko, who is currently on holiday in Canada, spoke on the telephone with an Akure based news agency, Luminous Communication, on Wednesday.He dissociated himself from the reports that he was in support of the new naira policy.

Aluko said that the new highest denomination of naira would be N2000 “in the real sense” in contrary to the N20 claimed by the CBN governor.

According to him, the new policy is “another introduction from the World Bank and International Monetary Fund. It is unnecessary, untimely and imposed on the country without debate, consultation or deep thinking.”

He noted that the apex bank was wrong to have made the announcement without getting clearance from the Federal Government and the Federal Ministry of Finance.

Aluko, who was a former lecturer at the Obafemi Awolowo University, called on the National Assembly to review the appropriate laws on the CBN to “ensure that our monetary policy is in consonance, not only with our fiscal policy but also with our overall economic policy and welfare.”

He said, “Such a policy reversal, which requires public debate just as it was done during the Structural Adjustment Programme in 1986, is another introduction from the World Bank and IMF, having discovered that the current devaluation of the naira has failed, is failing and will lead the country to nowhere.

“The new policy will not revalue the naira! The exchange rate in the real sense will make the highest naira denomination not N20 as Soludo has said, but N2,000, as it will be N20 with two zeros in front of it in the real sense.

“Instead of making the naira convertible and trade-able, they are just arbitrarily jogging with the denomination of the naira, contrary to their own advocacy that the value of the naira would be determined by market forces, whereas the exchange rate of the naira will henceforth be determined by a fiat.


What is/are your views?Personally,I disagree with him.

We need a link to the exact page on the punch website that you copied this from. Thanks.

But the man is speaking the truth, as discussed here: https://www.nairaland.com/nigeria/topic-72368.0.html