The Nigerian senate has given support to the Central Bank of Nigeria’s on its decision to redesign higher denominations of Naira notes, after a heated debate during its plenary session on Wednesday. Some of the Senators, however, wants the apex bank to take another look at the proposed deadline for the exercise.

This followed a motion moved by the chairman of the Senate Committee on banking, insurance and other financial institutions, Senator Sani Uba from Kaduna State which was to support the CBN’s plan

Senate in session

The red chamber’s stance came up a few weeks after the CBN governor, Godwin Emefiele announced that the apex bank will redesign 200, 500 and 1000 notes of the Nigerian currency, due to inflation and hoarding of cash flow by some persons in the country.

Though some members of the senate initially disagreed with the CBN on the timing of the decision and the time limit to put the action in motion, saying that the deadline, which is three months for the phase-out of the old denominations is inadequate.

However, the senate endorsed the CBN’s decision and promised to give the action legislative backing. The Senate, however, asked
the apex bank to create a platform for the enlightenment of people about the new policy. They also charged the CBN to include those living in rural settlements in their interactions and information.

According to the Senate, while resolving the matter, it mandated “the Committee on Banking, Insurance and other Financial Institutions to embark on legislative oversight to ensure that Nigerians are adequately protected from the CBN, banks and other agencies involved in the process encourage Nigerians and the general public to comply with the CBN directive to deposit cash at their respective commercial banks;and Urge the Senate to support the decision of the CBN given its entire benefit to the nation”

Announcement of the new policy has from the beginning been greeted with discordant tunes by Nigerians. Even the minister of finance, Mrs Zainab Ahmed said that the apex bank did not inform her ministry before making a such significant move.

However, Nigeria’s president, Muhammadu Buhari eventually pledged his support for the CBN’s decision. The President noted that his support was based on the reason given by the CBN for making the move. He explained that some people who are hoarding illicit cash are making life difficult for those who are earning honest money, and because of that the decision was needed.