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Disagrees With CBN On Deadline For Phase-out Of Old Naira Notes
The dust generated by the controversial monetary policy of naira redesign and withdrawal limits set by the Central Bank of Nigeria is far from settling as the Speaker of the House of Representatives, Hon. Femi Gbajabiamila on Thursday threatened to issue a warrant of arrest to Inspector General of Police (IGP), Alkali Baba to produce the CBN Governor, Godwin Emefiele and Managing Directors of Domestic Deposit Banks who fail, refused or neglected to respond to the summons by the House.
The Speaker who issued the notice after reading the letter sent by the CBN Deputy Governor (Corporate Services), Edward Adamu who disclosed that the CBN Governor is on President’s delegation to Dakar, Senegal, differed with the CBN authorities on the deadline set for the phase-out of the old notes.
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Gbajabiamila expressed disappointment over the impacts of the new cash policy on the economy and well-being of the citizens, saying: “The House of Representatives, in response to a motion on a matter of urgent public importance, invited CBN and Managing Directors of banks in Nigeria to appear before the House of representatives.
They were invited to give reasons for the ongoing failure to adequately disburse the redesigned naira notes before the expiration of the deadline of 31st January 2023, when the old notes will cease to be legal tender.
The House further constituted an Ad-hoc Committee led by the Majority Leader, Rep. Alhassan Ado Doguwa, for this purpose.
However, at the scheduled meeting on Wednesday, no official of the CBN appeared to respond to the summons by the House of Representatives.
“This is unacceptable. The Resolution of the House was predicated on information showing that the rollout of the redesigned naira notes has been an unmitigated failure.
“This failure has real and dire consequences on the ability of Nigerians to conduct business across the country.
“The refusal by the CBN to heed the invitation by the House of Representatives is evidence of a blatant disregard for the well-being of the Nigerian people who are their customers. It is also an insult to the authority and prerogatives of the people’s Parliament.
“Therefore, I will, under the authority conferred by Section 89 (1)(d) of the Constitution of the Federal Republic of Nigeria and Order 19 (2)(1) of the Standing Orders of the House of Representatives, not hesitate to issue a warrant to the Inspector General of the Nigeria Police Force to compel the attendance of the CBN or Managing Directors who fail, refuse or neglect to respond to the summons by the House of Representatives.
“The House of Representatives recognises the Central Bank of Nigeria’s (CBN) authority to determine the country’s legal tender and to recall currency with reasonable notice, subject to the approval of the President.
“The House is also aware that Section 20 (3) of the Central Bank of Nigeria (CBN) Act mandates the CBN to redeem the face value of the recalled currency upon demand, even after the expiration of the notice of recall.
“Notwithstanding the deadline imposed by the Central Bank of Nigeria(CBN), this House will see to it that this provision of the law is honoured in full.
“Now let me explain that again: the CBN Act, under Section 20, allows the Central Bank to change the legal tender. It also says that after the expiration date, such naira notes changed will no longer be legal tender, but it also says that even five months, three months, or two months after, even in June, all the old notes presented to the bank shall be redeemed by the bank.
“That point needs to be made to the Central Bank and the public. It has not been made. It is a provision of law.
“Gentlemen, if you recollect in 2009 and 2010, the then Governor of the Central Bank, Charles Soludo,(sic) introduced polymer notes and wanted to phase out N5, N10, N20 and N50 notes. There was public outcry because of the time. At the end of the day, it was halted.
“What did he do? He did what all known Central Banks do all over the world; he allowed for those N50 notes to continue in existence whilst introducing new notes until everything was mopped up by the banks.
“So, they were operating side by side for the good of the people. And this is all that this House is asking, either an extension or pari pasu.
“So, Section 20(3) of the Central Bank Act is perhaps what is most important right now; that after the deadline, whilst the old notes will no longer be legal tender…in other words, I cannot go to a supermarket, buy goods and bring out my old notes. Even if the waiter decides to accept, any old note, even the ones in the supermarket, if they decide a month later to take that money to the bank, the bank is under statutory obligation to accept it and redeem it at face value. That is the position of the law as passed by the National Assembly,” Gbajabiamila argued.
