Hello Nairaland users,
To get an insight into the 'level of intellectual depravement' of a very prominent member of this yeye Yar'adua's government, simply read the story below from Thisday. This is the Minister of National Planning for god sake
with an extremely poor understanding of what redenomination entails; now we can see the kind of morons surrounding Yar-adua.!!! Look at the portion highlighted in 'bold'.============================================================================

Link: http://www.thisdayonline.com/nview.php?id=87893

By: By Crusoe Osagie, 08.31.2007

Minister of National Plan-ning Senator Muhammad Sanusi Daggash yesterday said that even the president lacked the power to re-denominate the naira or embark on any major change in the country's legal tender.
Daggash, who made the statement in Lagos while addressing a world press conference on the 13th Nigeria Economic Summit, which kicks off in Abuja next week, said since the naira is established by a law, it will also take an act of parliament to make any serious change on the Naira such as redenomination that was proposed by the Central Bank
"Even the president cannot independently embark on naira redenomination. A 1972 law established the Naira and this law defines the naira in terms of how many kobos make one naira and so on. So that law must be repealed by the Nigerian people represented by the legislature for it to be redenominated," he said. 
Daggash explained that based on this fact even the president of the country lacked the powers to independently embark on a sweeping change of the nation’s legal tender as was proposed in the redenomination policy.

However, the redenomination of the naira as announced by CBN was not going to affect the units as 100 kobo would still have been equal to N1 under the new regime which has now been suspended by the president. (Here, I think Thisday is trying to 'educate' the Honourable Minister of National Planning!!! )
But Daggash stated that the governor of the Central Bank of Nigeria (CBN) Professor Chukwuma Soludo overstepped his bounds in his failed bid to introduce the naira redenomination policy.
He explained that the move by the CBN to redenominate the naira was at best a policy prescription and not a policy of the federal government as it were.
Daggash said even if the plan were to workout it required more consultation and approvals from government before it can implemented.
“Talking about reversal of policies by this government, I do not think the federal government’s move to halt the naira redenomination plan proposed by the CBN passes for a reversed policy because it was not a government policy. It was at best a policy prescription by the CBN,” Daggash said.
According to him, “It was a policy prescription of the CBN and not a government policy. Also the buy-in was one of the things Soludo did not handle well and so the summary is that he was prescribing a policy to government and government was not convinced.”
“As the minister in charged of national planning, I simply got an invitation to attend the launch of the new naira policy and because I did not understand exactly what it was all about I decided to attend another programme, which was scheduled for the same day as the launch of the new naira policy. It was only after the launch that the CBN came to us present a 13 paged document which we listened to for one and half hours about the policy so I wondered that a policy as far reaching as that would only be communicated to the ministry of national planning after it had been launched and they said it was just for our information,” explained.
Daggash said as minister of national planning he was not consulted about the policy and that goes to show how much consultation and buy-in the CBN sought for the very intricate step it was about to take.
“As minister in charge of national planning I was not consulted and so there was no consulting with other stakeholders. But government has procedures which must be followed.”
Arguing about the soundness of the policy Daggash said it is better to shore up the value of the naira and empower it by making efforts to increase the collective productive output instead of simply knocking off two zeros.
“Collective productive output increase is a better way to empower the currency. What we need to do to strengthen our currency is increase our productivity because the fact that you knock off two zeros does not increase your Gross Domestic Product and does not essentially increase the value of your currency,” he stressed.

I think I agree with the minister.

Considering the fact that the president will be held accountable for anything that happens in this country until 2011 every single major policy must be brought to his knowledge.

That Soludo failed to realize this beats my imagination silly.

The independence being granted to CBN does not mean that it can wake up one morning and tell Nigerians that from tomorrow we will be using Zimbabwean dollar, no, such will not stand.

Afam:

I think I agree with the minister.

Considering the fact that the president will be held accountable for anything that happens in this country until 2011 every single major policy must be brought to his knowledge.

That Soludo failed to realize this beats my imagination silly.

The independence being granted to CBN does not mean that it can wake up one morning and tell Nigerians that from tomorrow we will be using Zimbabwean dollar, no, such will not stand.

Do you honestly think Yaradua did not know that Soludo was going to announce Naira re-denomination before it was announced?

The planning minister or whatever should come up with ideas to move Nigeria forward, he should not sit back to wait to be consulted by other agencies.

Sometimes when you hear Nigerian politicians talking about not being consulted you think they mean that in good faith, some are just angry that may be contract and kickbacks wont come to them from the project.

However I am glad at the way Soludo managed the situation, lets forget about Naira re-denomination for now.

We are still watching and waiting for Yaradua, all he does right now is setting up commitees that only reverse other people's policies.

Soludo is on his way out, Yaradua is only being gentle with him
ask urself, y was Soludo's assistant chosing as minister of finance??
The President defntly knew Soludo was goinig to make the announcement

Someone should tell Sanusi Dagash that he has a lot of work to do so their is no need for him to be nosing here and there looking for a verbal ping pong match.

There is no established address system or National means to verify people's identity in Nigeria, that monumental task falls on his ministry. So it is only out of mediocrity that he is wishing to vet another agency's policy when his own ministry is not doing its job.

McKren:

Do you honestly think Yaradua did not know that Soludo was going to announce Naira re-denomination before it was announced?

So, if people informed him about what Soludo intended to do it is ok to let it be, is that what you are implying?

Sometimes I can't believe some posts on this forum.

I agree with AFAM.

Even if soludo inform the president, Finance minister and National planning minister, it will still not be enough. Did anybody hear Soludo consulting the Banks, Stock Exchange etc

Daggish is propably right, The President may not even have power to do thing that are so drastic that will change the country without reference to the National assembly.

My opinion is that Soludo just get this wrong badly for whatever the reason or motives, he should just apologise to the Business community and to Nigerians at large.

The Naira re-denomination thing is completely unnecessary and infact is not a progressive policy. (daggasih again is right here.  All we need is to increase our productivity and the overall economy. Look at China, they have to supress their currency from rising because it is the economy that dictates the price of currencies if you allow thw market to control it anyway.

May God bless Nigeria and everyone of us.

Afam:

So, if people informed him about what Soludo intended to do it is ok to let it be, is that what you are implying?

Sometimes I can't believe some posts on this forum.

what am saying is if there is anything Soludo did not do it is getting a written approval that would have served as a proof that the Presidency was very much in the know. I believe Soludo told Yaradua.

Dagash may be right, but I dont think vetting CBN policies is part of or the topmost in his job description. He should come up with policies to move Nigeria forward, we have not seen any progressive plan from his ministry.

Did he go to school:

See what I think:

However, the redenomination of the naira as announced by CBN was not going to affect the units as 100 kobo would still have been equal to N1 under the new regime which has now been suspended by the president. (Here, I think Thisday is trying to 'educate' the Honourable Minister of National Planning!!! )

This is right.

as if there is any economic policy of the world that will bring about a different ratio other than 1:100 between Naira/Kobo or Pounds/pence or Dollar/cents.


Where are the cartoonists? this will make a great joke.

The man wants to talk for the sake of it, why criticise Soludo after he has retracted his steps.

All we can be sure about is that the idea of re-denomination was not considered at all. If we are to go by the intent of all these laws, re-denomination would require presidential and senate approval.

@labiyemmy:

Did he go to school:

See what I think:

However, the redenomination of the naira as announced by CBN was not going to affect the units as 100 kobo would still have been equal to N1 under the new regime which has now been suspended by the president. (Here, I think Thisday is trying to 'educate' the Honourable Minister of National Planning!!! )

This is right.

I totally agree with you, i dont think the guy actually went to school, but he will probably have 'certificates' most likely from 'Toronto'. Those who 'agree with the minister' are probably not very different from him. The purpose of the article is not about the 'approach to' or the 'process' leading to redenomination; but the poor understanding of the 'concept' of redenomination by the honorable-idiot-in-charge of national planning.

As they say in the village of the blind one eyed man is king.

The minister has given very sound reasons why re-denomination is not a priority for now as indeed it will not make the Naira to appreciate unless serious steps are taken to make the Naira appreciate, not just knocking off zeros.

But of course, some know nothing but look for people to abuse when they are lacking in understanding.

d guy na agbero. see him speak.

All we can be sure about is that the idea of re-denomination was not considered at all. If we are to go by the intent of all these laws, re-denomination would require presidential and senate approval.

I wonder why the "Chief Law Officer" of the country failed to reference "senate approval" in his
speech besides the president's or did I miss something?