The Senate on Wednesday turned rowdy over the merits and demerits of the Central Bank of Nigeria’s plan to redesign the Naira notes, following a heated debate that ensued over the policy.
It however passed a resolution supporting the move after the whole situation calmed down.
The Central Bank of Nigeria (CBN) plans to redesign N1,000, N500 and N200 Naira notes. A motion to support the policy was moved by Senator Uba Sani.
Majority of Senators across party lines supported the redesign of the naira but some of them were concerned about the deadline set by the apex bank for the old notes to be deposited in commercial banks.
During the debate, lawmakers also questioned the impact of the redesign of the naira note on the economy and if it will help reduce the inflation rate and the dwindling value of the naira.
Sani had in the prayers to his motion urged the Senate to provide legislative support for the policy.
He also urged the red chamber to mandate his Committee to embark on aggressive oversight on the matter
In addition, Sani urged the Senate to support the CBN Naira redesign policy including the deadline fixed by the banking sector regulator for compliance.
Godwin Emefiele, CBN Governor, had on October 26, announced a redesign of N200, N500 and N1,000 notes.
The CBN governor, who pointed out that the change was sequel to the approval of the president, had said circulation of the new banknotes would commence on December 15, 2022.
According to him, the development was aimed at checking the increasing ease and risk of currency counterfeiting evidenced by several security reports, and the increased risk to financial stability as well as the worsening shortage of clean and fit currency, with the attendant negative perception of the central bank.
President Muhammadu Buhari had last week declared that his government would not go back on it and gave the central bank its backing.
The rowdy session started when senators Ali Ndume, Abiodun Olujimi, Betty Apiafi, Barau Jibrin, Chukwuka Utazi, and Orji Uzor Kalu, supported the CBN policy but suggested the extension of the deadline for compliance.
Kalu specifically wanted the Senate to invite 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 disagreed with Kalu and others claiming that the CBN Governor had always shunned the Senate invitations.
He urged his colleagues to ignore the CBN policy.
In his contribution, Senator Bassey Akpan stressed the need to support the CBN Governor. He said there should be no discussion on the matter.
Suswan and Akpan’s submissions did not go down well with those seeking an extension of the deadline and the chamber turned rowdy.
It took the persistent appeals by the presiding officer, the Deputy President of the Senate, Senator Ovie Omo-Agege to resolve normalcy after 10 minutes of hot arguments among the senators.
Omo-Agege said it was the prerogatives of the CBN to redesign the naira and put a deadline for compliance.
The Senate after the rowdy session offered to provide legislative support for the policy. It also mandated the Senate Committee on Banking and Financial Institutions to go on oversight.
Senator Ali Ndume had earlier said there were only five banks in the entire 27 local government areas in Borno State since the insurgency started in the state.
On her part, Senator Abiodun Olujimi, said one and half month was too short to withdraw all the money in circulation to avoid shutting down the economy.
She said the Senate should invite the CBN Governor for further explanation on the issue.
Also, Senator Betty Apiafi said rural banking had been shut down hence the January deadline should be extended.
She said countering wasn’t enough to change the naira, and demanded that the implications of the redesign should be critically examined in view of the fact that bandits have said they would be collecting ransom I’m foreign currencies.
Senator Barau Jibrin, said the naira redesign cannot on its own halt terrorism, but could only reduce it.
Senator Chukwuka Utazi said because of the rural nature of the country, the leadership of the Senate should interface with the CBN Governor.
Utazi urged the CBN to visit all rural communities to get first-hand information.
On his part, Kalu, suggested the extension of the deadline from January 31 to April 31 and that the Committee on Banking and Finance should meet with the CBN Governor on the matter.
