EFCC Witness Accuses Banks of Hoarding Redesigned Naira Notes

The trial of former Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, took a significant turn when a witness from the Economic and Financial Crimes Commission (EFCC) testified that commercial banks hoarded redesigned Naira notes, exacerbating a currency scarcity. This statement came during a hearing on March 5, 2024, as Emefiele faces multiple charges related to the Naira redesign policy implemented in late 2022.

During cross-examination, Chinedu Eneanya, an investigator with the EFCC, revealed that banks were allegedly stockpiling the new notes, which contributed to widespread hardship for many Nigerians. The EFCC has accused Emefiele of approving the printing of 375,520,000 pieces of N1,000 notes, costing the government N11,052,068,062, without proper endorsements from the CBN Board or the then President, the late Muhammadu Buhari. The charges state that these actions violated Section 19 of the CBN Act and contravened Section 123 of the Penal Code.

Eneanya’s testimony indicated that the redesign led to significant difficulties for the populace. He stated, “I am aware of that, but I cannot be specific,” when asked about the specific banks involved in the hoarding. This response highlighted the challenge of identifying the full extent of the alleged infractions by various financial institutions.

The prosecution, led by lawyer A.O. Mohammed, objected to questions regarding the arrests of bank officials tied to the hoarding. Emefiele’s legal counsel, Olalekan Ojo, challenged this objection, asserting that the witness had the jurisdiction to discuss arrests as part of his investigative role. The court sought clarification on the EFCC’s actions regarding the alleged infractions, leading to Eneanya’s admission that he lacked knowledge of any arrests made by the EFCC related to the case.

Eneanya also mentioned that the Managing Director of Nigerian Security Printing and Minting Plc, Ahmed Halilu, provided email communications relevant to the case during EFCC investigations. He acknowledged that while Halilu produced several statements, he could not recall their contents. This prompted Ojo to request access to these statements for review.

The witness was unable to provide specific figures regarding the amount of redesigned currency allocated to commercial banks, stating he would need to check the records to refresh his memory. He confirmed that a team from the EFCC, in collaboration with other law enforcement agencies, conducted a nationwide stock-taking exercise to ensure the availability of the new currencies.

As the proceedings unfolded, Emefiele’s legal team expressed frustration, indicating they received the Investigative Report only minutes before the hearing. The EFCC’s legal representative clarified that the timing was not intended to hinder the defense’s ability to prepare.

The trial has been adjourned to March 19, 2024, for the continuation of cross-examination. As the case progresses, the implications of the currency redesign policy and its execution continue to be closely scrutinized, particularly regarding its impact on the Nigerian populace.