Nigeria halts currency redenomination

The Central Bank of Nigeria has suspended its redenomination of the Naira at the request of the country's president, Alhaji Umaru Musa Yar'Adua.

Charles Soludo, the chairman of the central bank, said: "The board recognises and reaffirms Mr President's authority in matters relating to the denomination of our national currency, as enshrined in Section 19 of the CBN Act 2007."

Soludo added that the central bank is committed to the president's goal to make Nigeria one of the 20 largest economies in the world by 2020. Soludo added: "To this effect, the central bank is committed and ready to do all that is within its mandate and powers to accelerate Mr President's agenda for a stronger Nigerian economy."

The chairman announced on 14 August that two zeros would be dropped from the Naira as part of plans which also included the introduction of a new set of notes and coins.

Soludo said at the time that the changes were at the heart of Nigeria's bid to become a financial hub by 2020: "The thrust of the agenda [to make Nigeria the continent's financial hub] focuses on the Naira as our national currency - to realign its denominations, ensure its stability and global integration."

To read Soludo's statement on the president's intervention, click here

To read the Central Bank News story on the central bank's plans for a new naira, click here