Punch pulls report on CBN converting dollars in domiciliary accounts to naira

Nigerian newspaper Punch has pulled down a report it published on Saturday, suggesting the Central Bank of Nigeria (CBN) planned to convert $30 billion of foreign currency in citizens’ domiciliary accounts to naira.

The story was no longer available on the paper’s website Monday afternoon. The retraction followed denials from the CBN and the Nigerian government of the report.

The paper said in a statement it “took note of the government’s strenuous denial of the story.”

The original story, titled “Operation rescue the naira: FG considers converting $30BN domiciliary deposits to Naira”, cited an anonymous senior government official in the presidency as its source.

Following publication, both the Ministry of Finance and the CBN strongly denied the report’s claims.

“This 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,” spokesperson Hakama Sidi Ali said.

The statement claimed, “similar false narratives have been spread on the work of the CBN over the past few months and it is clear that vested interests are determined to sabotage our efforts.”

What the paper said

In a statement Monday, Punch explained the sourcing of its story and its response after the government’s denial.

“The main source of the story, a senior government official in the presidency, who spoke to a PUNCH journalist anonymously on sundry matters, was privy to the multi-layered discussions on saving the naira at different levels,” said Adeyeye Joseph, the newspaper’s editor-in-chief and managing director.

“Our publication reflected what the official said. PUNCH made spirited efforts to get the CBN to react to the story, but the spokesperson was unreachable.

“Our journalist spoke to a senior government official and PUNCH published a story that is based on their discussion. The story set off an important public discussion. “We took note of the government’s strenuous denial of the story. We obliged the apex bank its obligatory right of reply. Our duty in this matter is done.”

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Nigeria is grappling with severe dollar shortages that have led to a historic decline in the value of its currency, the naira. The shortages plunged the naira to its lowest ever level of over 1500 to a dollar, triggering fears the government may adopt unorthodox methods to try and stabilize the currency.

In an interview Monday with Arise TV, CBN governor Yemi Cardoso said the bank was close to clearing outstanding forex obligations and he was certain the naira was undervalued, and was on the path to recovery.