Emefiele: CBN Official Admits Presidential Orders Often Preceded Board Approval


A prosecution witness for the Economic and Financial Crimes Commission (EFCC), Dr Kingsley Obiora, testified on Wednesday, acknowledging the routine nature of the Central Bank of Nigeria’s (CBN) Committee of Governors (COG) implementing directives from the President, even before obtaining formal approvals from the Board and Committee of Governors. 

His testimony came before Justice Maryanne Anenih at the Federal Capital Territory High Court, Abuja, during cross-examination by the lead defence counsel, Mr Olalekan Ojo (SAN).

Dr Obiora, who serves as a deputy governor of the CBN, revealed that the COG had previously acted on presidential directives for funds disbursement to neighbouring countries such as Niger, Chad, and Cameroon, as well as for the Nigerian military, to enhance national security. 

According to Obiora, these presidential requests were often carried out without prior COG or Board approvals, which were subsequently ratified by the board.

The witness clarified that the term “ratification” referred to the COG and Board's formal endorsement of decisions initially approved by President Muhammadu Buhari. 

He explained that this process effectively validated presidential orders that had already been implemented, suggesting a precedent of flexibility in the approval protocol for actions with executive backing.

The former CBN governor, Godwin Emefiele, is answering questions about charges linked to this established practice. 

Specifically, the anti-graft agency is accusing the former CBN boss of violating due process by implementing the controversial naira redesign without securing the necessary COG and Board approvals. 

The commission argued that while Emefiele obtained initial authorization from President Buhari, he bypassed essential procedural steps mandated by the CBN Act, 2007.

In its charge marked CR/264/2024, the anti-graft agency had posited that Emefiele authorized the redesign and printing of new naira notes without adherence to the Act. 

According to the commission, the former CBN governor spent N18.96 billion on the production of currency worth N684.5 million, allegedly without the CBN Board’s recommendation and presidential endorsement as required. 

The EFCC claimed that the currency swap involved printing 375.5 million pieces of redesigned N1,000 notes at a cost exceeding N11 billion, a decision that allegedly contravened both CBN policies and federal regulations.

Emefiele was arraigned on May 15 on charges of “unlawfully redesigning and printing new naira notes” and of “knowingly disobeying the direction” outlined in the CBN Act by approving this currency swap.

But Emefiele, through his counsel, contended that his actions fell within the standard CBN practices for implementing urgent directives in line with presidential authority.

Further hearing has been adjourned until December 4, 2024.

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