Senate has resolved to provide necessary legislative support for Central Bank of Nigeria (CBN) Naira redesign. As a result the Senate mandated its Committee on Banking, Insurance, and other Financial Institutions to embark on an aggressive oversight to ensure that Nigerians are adequately protected from the CBN, Banks, and other agencies involved in the process. Resolutions of the Senate were sequel to a motion on the policy by the Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Senator Uba Sani. Senate has thus urged Nigerians and the general public to comply with the central Bank of Nigeria’s directive to deposit cash holdings at their respective commercial banks, just as it called on the the Senate to support the decision of the CBN given the aforementioned benefits of the currency redesign to the nation.
However, there was a rowdy session on the floor of the Senate when Senators debated the motion on the Naira Redesign Policy of the Central Bank of Nigeria. In their contributions, though Senators threw their weight behind the move to redesign the Naira, several were not too comfortable with the deadline of January 31st, 2023 to pay all cash in circulation into banks, saying the period was too short. The Senators who called for aggressive enlightenment on the part of the CBN especially in the rural areas to ensure that all Nigerians are made aware of the new policy, however insisted that such mass awareness creation would help Nigerians in the rural areas to comply with the policy so as not to lose their hard earned income. The lawmakers also urged the CBN to put measures in place in the face of ubiquitous Financial Technology (FinTech) to ensure that the local populace are able to bank their cash with ease within the stipulated time, adding that such a measure of would also ensure the security of the local population who might be waylaid and dispossessed of their cash by criminal elements like bandits and insurgents.
Earlier in his presentation, Senator Uba said that the Senate, “Notes that terrorism will also be halted as assess to the large volume of money outside the banking system used as a source for funds to pay ransom to bandits/terrorists. Notes also that the redesign of the currency would assist in the fight against corruption as the exercise would rein in the higher denomination used for this purpose and the movement of such funds from the banking system could be tracked easily. Aware that the CBN’s policy directs that new design notes are to be introduced on 15 December 2002 while the current will cease to be legal tender after 31 January 2023. Further aware that Nigerians have legitimate concerns about the time-frame within which to comply with the policy however there is a need for Nigerians to comply with the time-frame considering the importance of the process to the economy. Convinced that the introduction of any new banknote is a proud and important sment for the country.” Trouble started when senators Philip Aduda; Ali Ndume; James Manager; Sabi Abdullahi; Biodun Olujimi; Betty Apiafi, Barau Jibrin, Chukwuka Utazi, and Orji Uzor Kalu, supported the CBN policy, but suggested the extension of the deadline for compliance.
On his part, Kalu specifically urged the Senate to invite the Governor of the CBN, Godwin Emefiele, to throw more light on the policy while he should be persuaded to extend the deadline to April 30, 2023. But Senator Gabriel Suswan who disagreed with Kalu and others, claimed that CBN Governor has always shunned the Senate invitations, just as he urged his colleagues to ignore the CBN policy and let the country damn the consequences. Senator Bassey Akpan, stressed the need to support the CBN Governor. He said there should be no discussion on the matter. However, the submissions of Suswan and Akpan did not go down well with those seeking the extension of the deadline and the chamber turned rowdy. When Akpan started his presentation at 11.44am, he was still standing even as at 11. 49, the Deputy President of the Senate, Senator Ovie Omo-Agege, tried frantically to have Akpan have his seat as there was hot argument and normalcy returned to the Senate after ten minutes.
Senator Ovie Omo-Agege said it was the prerogatives of the CBN to redesign the naira and put deadline for compliance and the Senate, after the rowdy session, offered to provide legislative support for the policy.
In his contribution, Senator Ali Ndume said that there are are only five banks in the entire 27 local government areas in Borno State since the emergence of insurgency in the state. On her part, Senator Biodun Olujimi, who noted that one and half month was too short to withdraw all the money in circulation to avoid shutting down the economy, said thaf the Senate should invite the CBN Governor for further explanation on the issue. For Senator Betty Apiafi, rural banking had been shut down hence the January deadline should be extended, just as she said that counterfeiting wasn’t enough to change the Naira, adding that the implications of the redesign should be criticality examined in view of the fact that bandits have said they would be collecting ransom I’m foreign currencies. Senator Barau Jibrin, said that Naira redesign cannot not halt terrorism but could only reduce it. On his part, Senator Chukwuka Utazi said, “because of the rural nature of the country, the leadership of the Senate should interface with the CBN Governor to explain the implications on the peculiarity of the country. CBN should visit all the rural communities to get first hand information.” On his part, Senator Orji Uzor Kalu, suggested the extension of the deadline from January 31 to April 31. The Committee on Banking and Finance should meet with the CBN Governor on the matter.
