Mbarara said that such a move is commendable but quickly added that it was also a tacit admission by the Federal Government that Nigeria’s economy has collapsed.
He said: “This is a tacit admission by the Federal Government that Nigeria’s economy has collapsed." It is both a technical way and a very desperate attempt by the Nigerian state to redeem the Naira.
Mbarara, who spoke to The Nation, blamed what he described as a “collapsed economy” on corruption, which has eaten deep into the fabric of the nation.
“Corruption has eaten so deep into the fabric of Nigeria's state that corrupt money is now under people’s homes and under their beds, and what you have now is too much Naira pursuing a few dollars because the economy is no longer productive but rather consumption-oriented.
“So, our Naira is not backed by foreign earnings and the only foreign exchange earner for Nigeria, oil, has also collapsed,” he said.
The CBN on Wednesday announced the new monetary policy to redesign N200, N500, and N1000 naira notes with effect from December 15.
The Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, has said that the proposed redesigning of the naira could impact its value positively.
Emefiele stated that the decision was influenced by significant hoarding of banknotes by members of the public, a worsening shortage of clean and fit banknotes, and an increase in cases and risk of counterfeiting.
According to him, statistics show that more than 85 percent of the currency in circulation is outside commercial banks' vaults.
Emefiele said that both the new and old currencies would be accepted as payment until January 31, 2023.
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