There are no Plans to Convert Domiciliary Account Holdings into Naira

By Mustapha Lawal

Claim

Saturday PUNCH claimed in its banner headline that the Federal Government (FG) is considering converting $30bn domiciliary deposits to naira as part of an operation to rescue Naira.

Verdict

Misleading! The CBN debunked the allegation in an official press release titled “No Plans to Convert Domiciliary Account Holdings into Naira” signed by Sidi-Ali, Hakama (Mrs.), the Ag. Director, Corporate Communications of the apex bank.

Full Text

Saturday PUNCH banner headline, which reads “Operation Rescue Naira: FG considers converting $30bn domiciliary deposits to naira” was published on 3rd January 2024. According to the content of the news story, the Federal Government is allegedly considering a programme that would convert foreign money in residents’ domiciliary accounts to naira to stabilise the national currency, which earlier this week saw its worst performance in history.

This would mean by implication that the proposed policy would involve ordering the conversion of idle foreign currencies in both individuals and corporate organizations’ domiciliary accounts into naira at a rate to be determined by the Central Bank of Nigeria (CBN)

This was said to be a drastic move by the FG. “This drastic measure comes in the wake of the naira’s unprecedented depreciation earlier this week, marking its worst performance in history by falling 24 per cent to close at N1,348 per dollar in the official Nigerian Foreign Exchange Market”, the report says.

The news story quoted its source to be (unnamed) top Presidency sources. The Presidency source was reported to have told PUNCH that the issue of cash scarcity and naira depreciation is primarily an “elite issue” and that the Federal Government is resolved to take serious action against people who hoard foreign money, which has harmed the value of the naira.

The report was also found to be spreading on social media and other blogs including Naija Lamp and Naija News, which necessitated the need for this fact-check.

Verification

FactCheckAfrica found an official press release of the Central Bank of Nigeria (CBN) debunking the report on its official X page.

The release states that the “…allegation is absolutely false and aims to trigger panic in the foreign exchange market, which the CBN is working assiduously to stabilize, as evidenced by its recent work and policy directions… It further urges all stakeholders to disregard stories aimed at causing panic in the system and see them clearly for what they are – acts of national sabotage.”

The press release titled “No Plans to Convert Domiciliary Account Holdings into Naira” was signed by Sidi-Ali, Hakama (Mrs.), the Ag. Director, Corporate Communications of the apex bank.

Conclusion

The claim reported in the PUNCH Newspaper headline is False! The CBN debunked the allegation in an official press release titled “No Plans to Convert Domiciliary Account Holdings into Naira” signed by Sidi-Ali, Hakama (Mrs.), the Ag. Director, Corporate Communications of the apex bank.