As the import of the new plan to revalue the Naira begins to sink into the minds of Nigerians, the Federal Executive Council (FEC) has resolved to seek the advice of the country's Economic Management Team on it. The team, which is yet to be constituted, will "critically" look into the plan and "advise the council accordingly."

The Governor of the Central Bank of Nigeria (CBN), Prof. Chukwuma Soludo, had on Tuesday launched the strategic plan for the re-denomination of the nation's currency. Yesterday, he was at the Presidential Villa to brief the Executive Council on the plan. Under the plan, the Naira will revert to its pre-1986 level of about N1.25 to one United States dollar. Also the highest currency denomination will be N20. Members of the Council, who were obviously not consulted by the CBN before the policy was launched, want the Economic Management Team to clarify a few "technical issues" relating to it.
However, the Minister of Finance, Dr. Shamsudeen Usman, told journalists after the meeting that the constitution of the economic management team to look into the CBN proposal did not in any way mean interference with the autonomy of the apex bank.

He said: "The autonomy of the CBN is not in question. They acted within the law (establishing it). Whatever issue coming from the Council is only advisory to the CBN. Even the Economic Management Team is an advisory body. It is not in the constitution or the law of the land. Obviously, they didn't come to the government to approve (the proposal). The CBN Act doesn't allow it to get such approval before they act. They don't require government's approval for decisions on monetary policies. Monetary policy is within the preserve of the CBN."

He explained that what the Council wants to clarify is normal, adding that when the consolidation efforts of the banks were announced, so many stakeholders wanted to know details of areas they couldn't immediately grasp. Said he: "It was only on a few technical issues that the President said should be sorted out with the Economic Management Team."
The team is an advisory body recognised neither by law nor the constitution, which offers advice to the President on issues concerning the economy. Though members of the team have not been named, The Guardian learnt that they include the President (as chairman), the Ministers of Finance, National Planning, Minister of State (Finance), Economic Adviser to the President, chairman of the Federal Inland Revenue Service (FIRS).

Usman did not mention the "few technical issues" that the team would look into. He, however, admitted that under the CBN Act of 2007, the body is not bound to brief the Executive or any arm of government before launching the strategic plan.
He said: "The proposal launched by the CBN yesterday (Tuesday) is within the purview of the law establishing it. It is dealing with monetary issues. It is the prerogative of the CBN to take decisions on this issue. What the CBN did today is to brief the Council. In line with that, they are to present same to the National Assembly. The CBN Governor made it clear that if there are suggestions, they would be taken into consideration."

Minister of Information and Communications, Mr. John Odey, had earlier told journalists: "What the CBN is doing is sensitising all the stakeholders in this regard. The Minister of Finance is a member of the board of the CBN. There are benefits in terms of consolidation of the Naira in terms of micro economic stability. All these we will get professional advice from the Economic Team. The CBN plan for the redenomination is not something that will come up today. They will come up with a position for Council to approve. They will brief the National Assembly and other stakeholders."
The Council also received the report of the Committee on the domicile of the Bureau of Public Service Reforms, resolving that it remains under the Secretary to the Government of the Federation (SGF).
The Council also mandated the Bureau for Public Enterprises to put into motion the privatisation of the Nigerian Communication Satellite (NigComSat).

An earlier memo from the Federal Ministry of Science and Technology had sought the council's approval for either that NigComSat be allowed to go as a Limited Liability Company for two years under the supervision of the ministry after which the project would be privatised; government should hold some percentage shares in the company in line with the original plan and allow private sector to invest in the balance; or that 49 per cent of the project be placed under private placement by the BPE under Public/Private partnership.

The Council directed the Ministry of Science and Technology to begin action that "the BPE will privatise NigComSat according to Due process transparently."
Odey said: "The real objective of launching the satellite is to open the sector and later privatise it. The council has just directed the Ministry to commence action through the BPE for its privatisation. If it is privatised, thereafter, the company can now request for licence and they may be granted to run other services. The privatisation will not leave government with majority shares."

The Council also affirmed that the monetisation policy has recorded some results, emphasising "on strict adherence to policy."Odey announced that the Council approved the dedication of official vehicles to the same officers also during working hours only. They include the office of the Chief of Staff to the President; Deputy Chief of Staff, Ministers, Special Advisers and Permanent Secretaries.