Just heard it in the news(AIT) that Naira Redenomination has been suspended!

Guess Yar'adua has more pressing issues to contend with.

Lets keep our fingers crossed to await another "brilliant" agenda of the CBN.

Regards.

I sense there is a power struggle going on within the various arms of government. Whatever, I think the issue as important as our monetary policy(ies) should be left for the experts as it directly affects the nations economy.

Of what use is the independence of the Central bank if it can not be trusted and allowed to take independent decisions. O.K Soludo may have faulted by not informing Mr President of the plan, the president has come out with greater fault by listening to the advice of the politicians to overrule the apex bank's decision, annoyingly by the minister in charge of justice ministry. Two wrongs do not make a right we all know and I believe the president should be in the know of this. What should have mattered to the president is the overall interest of the nation and not the interest of a few individuals who would do anything to maintain the status quo.

What has just happened is a big embarrassment of international proportion, and Nigeria once again is becoming a laughing stock in the comity of nations. INDEED, NIGERIA WE HAIL THEE.O

HEARD IT ON THE NEWS TOO
let not jump into conclutions on what might have cause this development.
according to the AIT, he didn't take authority from the president b4 going public!

I am sure soludo had good reasons for proposing redenomination but there are some very real fears about the govt's ability to control inflation if redenomination is proceeded with.
How will employers, traders and home owners be compelled to keep numbers in check along with the new policy. Its easier in some countries than others. In a place like malaysia, the govt can order sellers, home owners, traders not to increase prices but not in naija. Everybody wants to make extra profit.
Interests rates are comparatively high in naija.
a redomination that brings naira at any close par to the dollar could lure banks into "carry trade", hedge funds and all will be waiting to milk the country dry

My bottom line is a lot of caution is needed over this move.

The Justice Minister made the annoucement, according to Reuters, I expect them to iron out their disagreement in due course.

Yar'Adua may be planning to sideline or remove Soludo, but he have to be careful and not listen to bad advice.

http://africa.reuters.com/business/news/usnBAN446642.html

In a place like malaysia, the govt can order sellers, home owners, traders not to increase prices

It is disgraceful for anyone with a senior secondary school leaving certificate to make such a statement. Governments cannot control prices; they can only push people into black markets while trying to.

Seun:

It is disgraceful for anyone with a senior secondary school leaving certificate to make such a statement. Governments cannot control prices; they can only push people into black markets while trying to.

You will be surprised that such ideas have credence amongst "educated" people.The lessons of history are never learnt.

naija politics huh!

Its unneccessary interference. They will soon show their true color. Nigeria is gradually slipping to the debtor status again, Many more days to go.

Are we not reading things out of context here. "Naira Re-Domination has been Suspended". Reason-"Due Process was not adhere to".
Solution- Follow the Due Process and authorize such actions within the context of the law and constitution of the Federal Republic of Nigeria.
It is that simple.
We don't have to blow hot and cold, start name calling, castigating the government or any other action based on pessimism so far exhibited here and other fora.

The Government of the day follows "Due Process". It is in the constitution and the right thing to do. Let them do the job they were elected to do plz!

When will the Nigerian Government surpport good thing. For Me i think making policy in Nigeria is not a problem. The problem is the implementation. The Re-Denomination of the naira is one thing Soludo as gotten right since He became CBN Governor. And another thing is that He made a mistake by not telling Yar' Adua before making the thing public. And now Umaru will want to make things difficult before approving it, to make people see that He is in-charge. I pray they sought it out early enough. My fear now is that most of these politicians that have foreign account will not like this development, because it will affect their money abroad.

Politicians money abroad is not in naira, but, the economy implementation of the proposal is zero.

lovemajek:

Politicians money abroad is not in naira, but, the economy implementation of the proposal is zero.

So you are telling Me now that when they want to spend it here they will spend it in Dollars and pounds abi?

@seun

is this thesame seun osewa , OAU - Elect Elect

The Minister of Justice is trying to checkmate everybody - remember what he did with EFCC about three weeks ago - but the question is this - who puts him in check? Can he just wake up one day and quote the law and then unilaterally stop goverment policies or something? I wonder?

There was nothing wrong with the Re-denomination.

There were concerns raised about the Government's ability to manage inflation, if the Re-denomination went along, but the same Economic team that is under the spotlight now, are the same Team that eased Nigeria's inflation problem. Prior to Soludo's expertise, the Naira was on it's way to hell.

Have we forgotten that the Naira has been depreciating in value for decades, it is because of this man "Soludo" that Inflation is no longer double digit, and the Naira stands at N125-N129 exchange to the Dollar as opposed to the N150 mark that it would most likely be at today. Solodu reformed the Nigerian economy. The Nigerian economy is growing steadily at 6-7% and will be accelerated to 13% growth this year. This isn't Voodoo, such growth is achieved after management of funds, and Economic policies. The re-denomination will be a costly process, but in the end it will be worth it. Uneducated Grade B economists are questioning the instance of the re-denomination. They don't know the meaning of the word, they are overwhelmed by the statement "Slash two zeroes" that they fail to realize that the process is achieved after economic policies. The re-denomination is not the answer to the weakness of the Naira, but it is the best that can be done with idiots as Presidents. we have Governors talking about "induced inflations" when they are the same baboons that demand revenue only to flood the local economies with worthless projects. Isn't that inflation.

Yar'Adua has no right to question the credibility of Charles Soludo, since Soludo came to office, what has he done apart from transform the economy. There will be no need for the scheme if Mr President, can resolve the Niger Delta Crisis, and manage the resources adequately, alleviating poverty, strengthening the economy and giving value to the Naira.

The fact is that Charles Soludo is Africa's best central Bank Governor. He recapitalized the banks, easing the size of the informal sector to a certain extent, lauded the emergence of SME's , thus alleviating Poverty to a certain extent, and improved the economy best he could.

No CBN Governor, can do his job without controversial decisions, with Stupid baboons mismanaging resources. Soludo's power is limited, he can only plead, that the right choices are made, yet all the attention is now diverted to him.

Soludo has done more for Nigeria than Yar'Adua or any person on this forum as ever done, yet people spit on him.

This is terrible. Shameful and Sad

But what do you expect with stolen mandate??

It means the government is in taters;

CBN is in another world, Finance ministry in its own world and FG in disarray!

Thats the message sent across the world.

This is another policy sumersault. 

Be very afraid of weak-minded rulers.

Wise Nigerians should not expect anything different from this junta.

i have a feeling soludo told the prsident verberlly, and the president said yeah fantastic idea, what he forgot to do is get a written consent from the president. Obviously without a written consent soludo has opened himself to crititism, he should just bite the bullet and resign, like they do in develop countries. His authority has been undermined. Nobody will take him serious anymore.

the point is that the policy is mo risky than it sounds, and my guess it that mr president does not want to turn turn naija into a melting pot.

Policies alone avail very little, it is how they are managed afterwards and there is very little guarantee that this is a good idea in the long run esp as inflation is already being defeated under status quo

KnowAll:

i have a feeling soludo told the prsident verberlly, and the president said yeah fantastic idea, what he forgot to do is get a written consent from the president. Obviously without a written consent soludo has opened himself to crititism, he should just bite the bullet and resign, like they do in develop countries. His authority has been undermined. Nobody will take him serious anymore.

whoa, whoa! slow down there bro!!!. . . what kind of advice is that? he should just tuck his tail btw his legs and resign?? and did i hear u say "like they do in develop countries"?? what da Bleep has that got to do with our country? and whats this nonsense about nobody taking him serious anymore?? speak for yourself only mister!!!

[quote:magneto]whoa, whoa! slow down there bro!!!. . . what kind of advice is that? he should just tuck his tail between his legs and resign?? and did i hear u say "like they do in develop countries"?? what da Bleep has that got to do with our country? and whats this nonsense about nobody taking him serious anymore?? speak for yourself only mister!!! [/quoote]

look you cannot have 2 captains in a ship, the guy has started growing wings, and those wings had to be clipped sooner rather than later. If the guy does not resign, he will be just ba bon-boy, yes sir kind of guy. He even made a blunder about 2 months ago, when he was question about 42 billion we had in reserve by the national assembly. He said 7 billion out of that maoney belongs to the federal govt, and the remainder belongs to the CBN. Who owns the CBN,

Am not suprised that this is happening. This is Nigeria where Superior deny their surbordinate easily because there discussion was not in black and white. How can yaradua convince us that Soludo just wake up and start making prnoucement of re-denomiation of naira without consulting him

This just remind me of OBJ and Atiku on PTDF saga where Atiku said that OBJ gave him a verbal approval and OBJ denied.

Welcome to Nigeria. they have started playing ludo with us, it is so unfortunate that Yaradua is learning from OBJ, and I don't want to agree with Balarabe Musa that Yaradua will be worst than OBJ.

Soludo should not worry much. Afterall, the man that came out to say that the world is contantly rotating was killed only to be given a post-humous apology when it was finnaly confirmed that the world actually rotates. When Soludo came out with the RECAPITALIZATION stuff up to 25 Billion Naira, everybody shouted out that it wasn't gonna be possible, since the highest capitalised bank then was still bellow 2 billion Naira. But now we have banks that are capitalized to the excess of 100Billion Naira.

i have a feeling soludo told the prsident verberlly, and the president said yeah fantastic idea, what he forgot to do is get a written consent from the president.

It is more than that. Usman set-up Soludo.

Usman said that CBN does not have to inform FG before doing any policy change.

So above blame if for anyone, it should be Usman. But Soludo is taking the heat, which Usman should take since he is the Boss.

Soludo days are numbered. Already he is not member of Economic team, a CBN governor?

Can you emerginy 'Greenspan or Ben' not member of Bush economic team??

Nigeria is drifting backwards once again, it is plain and simple.

I think Yar'Adua is a great president and Soludo is a Great Economist, however there is a conflict of interest here.

Yar'Adua is at fault, the best we can hope for, is that when Charles Soludo is replaced, he will be replaced with someone as capable as himself. Someone that can continue with Soludo's initiatives. The most important of these been the "FSS 2020, that plan was proposed during Obasanjo's regime, and must not be hindered like the re-denomination.

Charles Soludo should not feel discouraged ,the fight requires doggedness.

A 'fight' with no real economic objective?

Since Soludo contravened Section 19 (1), sub-section 1 and 2 of the CBN Act, which requires that any matter dealing with issuing new currency and coins must be with the approval of the president, he said, the policy had to be suspended forthwith.

“I drew the attention of Mr. President to the provisions of the CBN Act of 2007 as to whether an approval was sought in accordance with the CBN Act before he (Soludo) commenced the process of re-denomination. The president, in the presence of myself and the State House counsel denied that such an approval was sought for, and neither did he grant any.

“I, as the chief law officer of the federation, hereby stop all actions on the re-denomination of the naira. This is because the action of the CBN Governor violated Section 19, sub-section 1 and 2 of the CBN Act. Therefore, the actions must abate. All actions of the CBN in the re-denomination must be in accordance with the CBN Act. So, until an approval is sought for and obtained in writing from the president, all actions on the re-denomination must stop”, he stated.

http://www.sunnewsonline.com/webpages/news/national/2007/aug/25/national-25-08-2007-002.htm

Guys i really think we should take this redenominaion of a thing with care. is the economy ready for such a thing or we just want to do "follow follow". the govt cant really control prices since our economy is market driven, i.e. follows the rules of demand and supply, cost e.t.c. Its only in a productive economy that redenomination will really work. some conditions have to be met before implementing it or else, the naira will still bow to the forces of inflation. Soludo may be good but lets not forget he is still human and besides the idea had being brought up during obj's regime why wasnt it announced then. my advice lets all look at the issue very wellbefore attacking the presidents decision.

the point is that the policy is mo risky than it sounds, and my guess it that mr president does not want to turn turn naija into a melting pot.

Policies alone avail very little, it is how they are managed afterwards and there is very little guarantee that this is a good idea in the long run esp as inflation is already being defeated under status quo

Did you bother to read the Attorney General's statement? Due process was the reason for the reversal not the "soundness" or riskiness
of the policy. Politics is triumphing over policy here. AC (Alliance for Corruption) with all its expert economic advisers had condemned the
policy and had wanted Soludo fired. They seem to be getting their wish.

You may want to read the following from the Guardian:

http://www.guardiannewsngr.com/news/article02

I belong to the school of thought that believes that Yaradua is executing a nothern Agenda.

All the key ministeral posts right now belong to the north. Stregthening the Naira against the Dollar is defiitely not in the interst of the north. What a flimsy exscuse.

God save Nigeria!.