New Naira Notes: Senate Pledges Support As Lawmakers Disagree On Deadline

Nigerian lawmakers have called on the country’s monetary authorities to extend the deadline for residents to change their old naira notes to new ones.

The Central Bank of Nigeria recently announced a plan to redesign naira notes and fixed 31st January 2023 as the deadline for residents to change their old notes.

On Wednesday, some senators called for an extension of the deadline while others disagreed.

The senate also resolved to provide legislative support for the policy.

Some of the senators who spoke on the matter during plenary on Wednesday said the timeframe given by the apex bank is too short for many of them – and Nigerians – to comply. This ‘disagreement’ threw the chamber into a rowdy session for some minutes.

In October, the CBN Governor, Godwin Emefiele, announced the plan to redesign the 200, 500 and 1,000 notes. He said the new notes will go into circulation in December while the old notes are expected to be out of circulation by January 31.

The move is aimed at having control of the currency in circulation, managing inflation, and tackling counterfeiting, he explained.

Although President Muhammadu Buhari had said he supports the move and has given the CBN the go-ahead, the finance minister, Zainab Ahmed, complained that she and her ministry were not briefed on the plan.

She also believes the planned redesign of some naira notes portends some consequences.

It started with a motion by Kaduna Central senator, Uba Sani, who wanted the CBN’s plan deliberated in the Senate.

He also wanted the Senate to provide legislative support for the policy, including the January 31 deadline for compliance.

Mr Sani, the Chairman of the Senate Committee on Banking, Insurance and other Financial Institutions, also asked his colleagues to mandate his committee to embark on aggressive oversight on the matter.

While some senators including James Manager, Bassey Akpan and Chukwuka Utazi supported the motion, others – who also thought it was a welcome idea – asked that the deadline be extended.

Barau Jibrin (APC, Kano) said it is necessary to consider the people in the rural areas as it might take time for them to get their money to the bank.

“Each and every one of them must have a way of getting his or her money into the banking system when this exercise will be carried out. We need to look at the peculiarity of our rural folks so that they don’t get messed up in this exercise.”

Ali Ndume (APC, Borno) expressed worries that there are only five banks in the entire 27 local government areas of Borno State since the insurgency started in the state.

Betty Apiafi (PDP, Rivers) said counterfeiting was not enough reason to redesign the naira and that rural banking had been shut down hence the January deadline should be extended.

Ekiti senator, Biodun Olujimi, said the window open for people to exchange their naira notes “is too short.” She also asked that the CBN governor be invited by the Senate for further discussions.

The Senate Chief Whip, Orji Kalu, also asked that Mr Emefiele be invited to the Senate to “throw more light on the policy”, after which the senators will persuade him to extend the deadline to 30 April 2023.

These suggestions were dispelled by Benue senator, Gabriel Suswam, who reminded the Senate that the CBN boss has always ignored the Senate invitations. He asked his colleagues to ignore the CBN policy and let the country ignore the consequences.

“…My worry is that the CBN Governor who is seeking our support has in the past shown utmost disrespect for this chamber,” he said. “The president has already approved and they are already printing so what are we talking about here? If the CBN had wanted our support, one would have expected that there would have been proper consultation. Let him go ahead and do what he is doing.”

In contrast, Mr Akpan said the bank should be supported in carrying out its duties.

What followed was a moment of rowdiness and arguments among the lawmakers which seemed overwhelming for the Deputy Senate President, Ovie Omo-Agege, who presided over the plenary.

He however, succeeded in calming the lawmakers after persistent calls and gavel-banging.

He said it is the prerogative of the CBN to redesign the naira and place a deadline for compliance.

The Senate thereafter resolved to provide legislative support for the policy. It also mandated the Senate Committee on Banking and Financial Institutions embark on oversight to ensure that Nigerians comply and are protected by the policy.
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