The Central Bank of Nigeria is going ahead with the planned introduction of the N5,000 notes and the coinage of N5, N10 and the N20 in spite of the directive by the Senate to halt the process
PUNCH investigations showed that the leadership of the CBN had already called for tenders for the production of the coins amid the controversy that greeted the bank’s announcement.
It was gathered that the CBN had shortlisted three firms from the United Kingdom, Germany and France to tender for the multibillion naira minting job.
The three minting and printing firms said to have been contacted are Delarue of Britain, D&G of Germany and Orbether of France.
It was learnt that some of the top officials of the CBN were surprised that the bank’s leadership did not find it necessary to contact any of the Russian firms said to be reputed for the production of quality bank notes.
It was gathered that the three foreign firms were contacted based on their understanding of doing business in the Nigerian environment.
CBN Governor, Sanusi Lamido Sanusi, had said during a news conference in Abuja on Aug. 23, that the bank had secured a presidential approval to introduce the N5,000 denomination and to coin the lower denominations of N5, N10 and N20.
Sanusi had described the planned review as ‘Project Cure.’
According to him, the proposed N5,000 note would have the portraits of three distinguished Nigerian women, who contributed to the nation’s struggle for self-rule.
The women are Margaret Ekpo, Mrs. Funmilayo Ransome-Kuti and Hajiya Gambo Sawaba.
But the Senate, through its Committee on Banking, Insurance and other Financial Institutions, objected to the CBN’s decision and instructed the bank to suspend the move until it was properly briefed.
The chairman of the committee, Senator Bassey Otu, told newsmen in Abuja on Monday decision taken on the nation’s currency required a parliamentary approval.
The senator warned the CBN against sending the wrong signal to Nigerians, the domestic sector and the international community that the naira is of no value.
“I believe that a project of this nature requires parliamentary approval because there are numerous fiscal implications on the entire economy.
“So, we are sending a letter to them to stop all further actions on this until the Senate of the Federal Republic is properly briefed,” he said.
Similarly, the House of Representatives on Wednesday summoned Sanusi to brief the House on the issue.
The Chairman, House Committee on Banking and Currency, Mr. Chukwudi Onyereri, said during a news conference in Abuja that the decision to summon Sanusi was informed by the fact that the CBN had not informed the House of its plan to introduce N5,000.
Onyereri said that the House would like to know if the proposed introduction of N5,000 notes did not conflict with the cashless policy of the bank.
Investigations showed that the CBN board had approved the production of 250 million pieces each of the N5, N10, and N20 proposed coins.
It was learnt that the CBN authorities had reduced the funds meant for the production of the coins from the initial N11.8bn to about N8bn.
The current budget for the proposed coins production shows a difference of N3.8bn.
The board of the CBN had met in May and took a decision to introduce the N5,000 denomination into the economy.
The board agreed to give the minting and printing job to foreign firms with the requisite technology.
Out of the N40.3bn that was approved for the implementation of the policy on the nation’s currency, the board approved N11.8bn for the minting of coins.
The 11-man CBN board comprises five executive members and six non-executive members.
The executive members of the board are Sanusi, who is Chairman; the Deputy Governor, Financial System Stability, Dr. Kingsley Moghalu; Deputy Governor, Operations Directorate, Mr. Tunde Lemo; Deputy Governor, Economic Policy, Dr. Sarah Alade and Deputy Governor, Corporate Service Directorate, Alhaji Suleiman Baraju.
Their non-executive counterparts are a former Head of Service of the Federation, Mr. Stephen Oronsaye; the Accountant General of the Federation, Mr. Jonah Otunla; the Permanent Secretary, Ministry of Finance, Mr. Dalandi Kifasi; Prof. Samuel Olofin and Mallam Dahiru Mohammed.
Investigations showed that the CBN, which operates under the CBN Act of 2007, has full autonomy in the discharge of its statutory responsibilities.
The Director, Corporate Communications of the CBN, Mr. Ugochukwu Okoroafor, stated during a news conference in Abuja on Thursday that “the law is very clear on who does what.”
He insisted that the CBN had not overshot it limits by the move to restructure the nation’s currency, stressing that the mandate of the bank was “clearly stated by the Banks and Other Financial Institutions Act and the CBN Act of 2007.”
He said, “But it’s important to note that the law is very clear on what our responsibilities are; it’s very clear on the process as far as this matter is concerned and we are completely within our mandate and we have made that point clear and there is no problem because the law is very clear on who does what.”
Sections 17, 18 and 19 of the CBN Act of 2007, which Ugochukwu relied on, gives the CBN full autonomy on the issue of currency production with recommendation from the board and approval by the President.
“The bank shall have the sole right of issuing currency notes and coins throughout Nigeria and neither the Federal Government nor any State Government, Local Government, other person or authority shall issue currency notes, bank notes or coins or any documents or tokens payable to bearer on demand being document or token which are likely to pass as legal tender.
“The bank shall arrange for the printing of currency notes and the minting of coins; issue, re-issue and exchange currency notes and coins at the bank’s offices and at such agencies as it may, from time to time, establish or appoint; arrange for the safe custody of un-issued stocks of currency notes and for the preparation, safe custody and destruction of plates and paper for the printing of currency notes and disc for the minting of coins; and arrange for the destruction of currency notes and coins withdrawn from circulation under the provisions of section 20 (3) of this Act or otherwise found by the bank to be unfit for use.
“The currency notes and coins issued by the bank shall be in such denominations of the naira or fractions thereof as shall be approved by the President on the recommendation of the board; and of such forms and designs and bear such devices as shall be approved by the President on the recommendation of the board,” the sections read.
Okoroafor, however, denied that the CBN budgeted N40bn for the printing and minting of the notes and coins.
The CBN spokesman was, however, not forthcoming on the total quantity of the N5,000 notes and the quantity for the three proposed coins and the cost of the job to the nation’s treasury.
“The N40bn that was reported would be used to print the N5, 000 notes is not true. Go and check our annual report and you will see how much we are using to print the naira. This is something we haven’t even done. Pick the annual report and see the cost of printing currency and that is what you should use in your analysis,” Okoroafor said.
However, the Medium Term Budget Forecast of the CBN submitted to the Senate in May showed that the bank budgeted N87.85bn for currency management and monetary policy operations in the 2012 fiscal year.
The budget reflected an increase of N9.94bn over the N77.91bn provided for in the 2011 budget.
Culled from Punch
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Central Bank and its leaders are crazy and a bunch of fools that do not know what their duties are...
ReplyDeleteMay God hav mercy on nigerian greedy politicians.dis is d easiest way 2 syphone d country's economy.1000 pieces of our note wch can be folded in d pocket of 5000 naira is 5 million ,so dey can put more Dan 10 rapes of it making 50 million ,fools,dis coinage of our naira is d most annoying ,hardship everywhere
ReplyDeleteOKEZIE,
ReplyDeletePLEASE,DO NOT WASTE OUR MONEY PRINTING COINS.YOU AND I NO FULLY WELL THAT WE DON'T USE THEM.THE DECISION TO PRINT #5,000 NOTE IS IT FOR THE INTEREST OF THE NATION?REMEMBER POSTERITY WILL ALWAYS JUDGE US.
Cashless society,more denominations...Good riddance to bad rubbish...Nonsense..
ReplyDeleteIs printing of new note(500) and coins into the society our major problem as an economy striving for survive of it citizens and development? The Federal government of Nigeria, should however sort more to fulfilling the demands, want and community development of its society and Her citizenry rather than indulging in an adventure which will destroy the society much more. We are not people to be ruled like fools who do not have opinion nor a mind set. We are absolutely aware of what development is and the worth of individual person in developed or better said, developing society. Mr President sir, we Nigerians' have spoken with one voice" fight the very important issues in our society,rather trying to create more problems and corrupt members in the federal para-stater. This idea is simply a means to embezzlement of the countries resources to the foreign land. Enough is enough. we have more vital issues to address or to be addressed. we are very wasteful society. i wonder if this nation will ever grow if those in the aims of government continues in this manner. the money which was supposed to be used to print the so called 500 note, shuld rather be used to create more jobs opportunity . thr by, reducing unemployments among youth.
ReplyDelete