The National Assembly on Monday said it would stop the Central Bank of Nigeria from introducing its proposed N5, 000 note.
While the Senate said only a major currency crisis could warrant a review as proposed by the CBN governor, Mallam Lamido Sanusi, the House of Representatives said the proposed review as far as it was concerned did not exist.
Sanusi had announced last Thursday the CBN’s proposal to roll out new N5,000 notes early next year and to convert to coins the present N5, N10 and N20 notes. There are already 50k, N1, and N2 coins in circulation which Nigerians had largely rejected.
“As a committee, we should do our work. This morning there is a burning issue that is going on in our country and there is need for us, as a committee, to comment on this topical issue. I am the chairman of the Senate Committee on Banking, Currency and other financial institutions.
“We have also read in the papers just like you about the currency restructuring that the CBN embarked on. I believe that a project of this nature requires parliamentary approval because there are numerous and fiscal implications on the entire economy,” Senator Otu said.
The CBN governor had on Thursday, last week, announced the introduction of a new currency series where the existing denominations of N50, N100, N200, N500 and N1,000 will be redesigned and a new note of N5,000 introduced.
According to Sanusi, the front face of the new highest denomination will be adorned with the pictures of three women activists – late Margaret Ekpo, Funmilayo Kuti and Hajiya Gambo Sawaba, while the back side would have the National Assembly structure.
Speaking further, Senator Otu warned the CBN to be very careful in taking some decisions that would worsen the nation’s economy and send wrong signal that Nigeria’s currency was valueless. He stressed that the country did not deserve this policy since the nation was not in a major crisis.
According to him, “this type of action is only taken where there is a major crisis and the CBN must be very careful in order not to send a wrong signal or message to households, domestic sector and even the external ones that the Nigerian currency is valueless, which I believe it is definitely not, and that for every unit of value they need to carry a large quantity of cash.
“The CBN in 2008 and 2009 came up with a proposal to re-denominate the currency, that was even to take off the zeroes. This was just 2008 and 2009 and here we are in 2012 we are seeing a kind of policy somersault even though we understand the dynamics of the sector very well. I believe that we have to be well briefed on this.
“Also in 2005, the CBN undertook a major currency restructuring which ran into billions of Naira.
“Till date, a proper value has not been done to know its costs to the Nigerian tax payers and the extent of the benefits and in that 2005 coinage, I think it did not work at all because both the goldsmiths and the blacksmiths converted the coins to moulding bangles, earrings, etc.
“So, we believe that the coinage works very well where there is infrastructure to take it like a half, probably like a parking where you go and put it, etc. We have not developed that real basic infrastructure and those coins, most of them, are nowhere really to be found.
“The CBN will have to prove that the policy is not a clear contradiction or at variance with cashless society, which they are even yet to justify and whether this is the popular economic way to go. We are asking and we are sending a letter to them to stop all further actions on this until the senate of the Federal Republic is properly briefed.”
Asked if the CBN informed the Senate prior to the decision, Senator Otu said: “Well, we have not been properly briefed yet, so I would not know. We do not know the reason for it, even though at the moment we do know that inflation is a problem, but I don’t think that they have used all the mechanisms to tackle it and it is not really out of hands.
“There has not been any meeting with the CBN yet. This is a major policy issue and there is no way this kind of thing can go on without us knowing everything about the details in order to know how it will affect the people of Nigeria.”
On what section of the constitution the Senate was relying on, he said: “We are not really going to rely on laws per se, what we are trying to do here is what is best for the Nigerian people. The Senate is not really against the independence of the CBN, but what we want in place is proper check and that there should be checks and balances in all these things that we do.
“So, I believe that at some point we will be able to sit down together and look at the merits and demerits, but till date we do not know anything about it and we do not know what the people stand to gain and until that is properly put through, we say everything about it must stop.” Click to signup for FREE news updates, latest information and hottest gists everyday
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Oooshe! Nice one o! Finally ᵃ true Nigerian has spoken.
ReplyDeleteThank God , i m a little bit relieve now.
ReplyDeleteEveryday , i keep on thinking on about looming problem that this new note will create for the masses.
God will help Nigerians from Bad Leaders
The question is: has the National Assembly as a whole ever recorded any success stopping our sissy-voiced CBN governor? As expected, he would ride roughshod over them. Keep your eyes peeled.
ReplyDeleteI wish everyone will reason or sees it from this angel. It's so unfortunate that majority of nigerians pay less attention to what wil kill them in future. We have a better issue to tacle. It is so painful to live in a country where every individual and organisations do whatever comes their mind and fully ignore the policy of the government. To every damage, there are somebody somewhere who stand a chance to benefit from the damages. This is what i least expect from this country. Well i just have to lay low to get there. But i must inform the well meaning nigerians not to relent on their good work. This is the only country i've seen using two differend denomination in one note. What a shame. How can a country mint a special money to celeberate her independence. One with a nigeria flag and the one is not, all in nigeria. Growing up i was told nigeria currency is naira. Yet they call a one thousand note a niare when there is no symbol to recongnise it so. Let us stop living like a ship without a shephard. Lets be bold enough to address issues that affect the country the most certainly not the in introduction of five thounsand naira note that will bring us pains, suffering and starvation in the nearest future. There is a question i really need an answer to. Must every CBN governors introduce a new currency?. And nigeria is the only country i have seen that is fast when it comes to minting of new currency. I'm not even sure if a country that colonised you had the number of currencies of have. Why are we so sharp and smart when it comes to money. Let us work in a way our nest generation will have a lesser work to do. I stand for peace, love, unity. I wil rule this country. ALL HAIL NIGERIA.
ReplyDeleteNigeria does not need 5000 naira note what we need is to cancel out one zero each from our currency.
ReplyDeleteNigeria is a most corrupted country instead of using money to buy transformer or agricultural material they want to use it to print 5000 note so that is will be easy for them to steal our money to oversea
ReplyDeleteThis CBN Governor, where did he study? It's incredible to find a Central Bank of a Country create numerous economic problems for her country. Ah, what good will N5000 note do the economy? Where is N1 and 1k. There are no where to be found. Every year, Nigeria will print new currency and yet the economy keeps on sinking. What is really wrong with these administrators? Are they Nigerians or people who want to destroy Nigeria?
ReplyDeletePlease Senate help us oo, Sanusi is killing us gradually, when they print 5,000 naira note and coins now, market women will not accept coins because of security reason's. It's we the poor that will suffer it.
ReplyDeleteAt vote of no confidence should now be passed on the CBN governor, Sanusi, in the National Assembly. He has done so many things that have threatened the welfare of Nigerians. One does not need a PhD in economics to know that inflation will sky rocket and many Nigerians die of starvation once Sanusi does what he proposes to do. History does not matter to him. The article of Prof. Oyejide on page 19 in the Punch of today, 28 August 2012, is a good read.
ReplyDeleteImaging you want to buy bread 150 naira, and you have 5000 note, how will they get change self? We have not finish with 1000 wahala, they want to kill us with this. Pls they should forget about period.
ReplyDeleteI pray d senate stops SANUthief. He want to spend #40billion to re-structure d currency and d house is not aware of this! This is horrible, little wonder it is easy for goats and pigs to defraud this country and go scot free. SANUthief is going to get 20% of the contract that is why he is bent on printing new notes. Stupid man. God will visit ur family wt famine and everlasting hunger.
ReplyDeleteif can help us we will be very happy. please help us stop them in introducing the #5000 note to avoid future problem. because in the next 20years that means we would have #1000000 notes.thats may be too dengerous to our economy. please help us and stop them from printing the #5000 note.
ReplyDeleteIf there will be 5000 note,there must be 2000 note to aid in the break down of the 5000 note in terms of change
ReplyDelete