Gowon defends Awolowo over post-war £20 policy
…. says bank deposits were fully refunded
Former Military Head of State, General Yakubu Gowon, has defended the late Chief Obafemi Awolowo over the controversial post-civil war £20 policy, insisting that the decision was taken collectively by the Federal Government and not by the then Finance Commissioner alone.
In his newly released memoir, My Life of Duty and Allegiance, Gowon said claims that Igbo people who had millions in Nigerian banks before the civil war were paid only £20 after the conflict were inaccurate, explaining that verified bank deposits were refunded in full with accrued interest.
The former Head of State, who led Nigeria between 1966 and 1975, said the £20 payment applied to the exchange of Biafran currency, which he maintained had no legal or international monetary value.
According to him, the Federal Government adopted the policy following recommendations by economic experts after concluding that exchanging all Biafran pounds at par with the Nigerian currency would have plunged the country into economic collapse.
“Due to the large number of Biafran pounds in circulation, the Federal Government decided it could not afford to exchange them all at par with the Nigerian currency without risking economic collapse,” Gowon wrote.
He explained that economic advisers recommended limiting the exchange to about £20 for every Biafran adult, regardless of the amount of Biafran currency presented.
“We accepted the proposition and adopted it as policy, particularly because we were unable to determine the micro and macro parameters for printing the Biafran notes,” he said.
Gowon, however, stressed that those who had verifiable deposits in Nigerian banks before fleeing during the war were not affected by the policy.
“All who fled Nigeria but had proof of having money in Nigerian banks received full value for their money plus the interest that it earned in the Nigerian currency. It would have been unwise to take a different course of action,” he stated.
