How Senate Failed to Shift Deadline for Naira Redesign

An attempt by some senators to shift the deadline for naira redesign from the January 31, 2023 to April 30, created uproar on the floor of the red chamber last Wednesday. At the end, they failed, Sunday Aborisade writes

The Senate resumed plenary on Wednesday following the end of the recess it embarked on October 12 to enable members to engage heads of ministries, departments and agencies on their 2023 budget proposals.

The first legislative activity of the day at plenary, presided over by the Deputy Senate President, Senator Ovie Omo-Agege, was a point of order raised by the member of the All Progressives Congress (APC) representing Kaduna Central Senatorial District, Senator Uba Sani. 

Sani’s motion was titled: ‘Re-design of the New Naira Notes by the CBN: A Call for Legislative Support.’

In the motion, the senator proposed four prayers and sought the approval of his colleagues. 

One of his key prayers was that the Senate should encourage Nigerians and the public to comply with the Central Bank of Nigeria’s directive to deposit cash at their respective commercial banks. 

He also urged the Senate to support the decision of the CBN given the aforementioned benefits of the currency redesign to the nation.

The Senate approved the four prayers when the presiding officer put them into votes. 

However, while the majority of the senators across party lines supported the redesign of the naira, some of them were concerned about the deadline set by the apex bank for the old notes to be deposited in commercial banks.

Some of the lawmakers called for a shift in the deadline for the old banknotes to be withdrawn from circulation, from January 15 to April 2023, to enable them offload the cash they had stockpiled for elections. 

CBN Governor, Mr. Godwin Emefiele had on October 26, announced a redesign of the currency in the variation of N200, N500 and N1,000. 

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.

It was gathered that this monetary tool aimed at fighting corruption, checkmating money laundering, eliminating counterfeits, and ending the hoarding of the Naira by kidnappers and others, has thrown politicians who stashed billions of the Nigerian currency ahead of the 2023 general election into confusion.

It is estimated that about 84 per cent of the N12.73 trillion in circulation is outside the banking system, precisely in the hands of corrupt politicians, kidnappers, traders and criminal elements. These elements, who do not bank their funds, are involved in money laundering and currency round-tripping using the black market as the alternative foreign exchange window.

The politicians who feared that they might not return billions of Naira into the banking system within the three months – November 2022 to January 2023 specified by the CBN without breaching the Money Laundering Act and attracting the attention of the Economic and Financial Crimes Commission (EFCC), are mobilising some members of the National Assembly to pass a resolution against the Naira redesign.

THISDAY had reported that politicians who stashed billions of naira outside the banking system to prosecute the 2023 general election were plotting against the reintroduction and redesign of Nigeria’s currency.  These politicians, it was learnt, had mobilised the National Assembly to pass a resolution against the naira redesign.

By the time the issue came up for debate in the Senate last Wednesday, many Nigerians were not surprised. The lawmakers questioned the impact of the redesign of the naira note on the economy and if it would help reduce the inflation rate and the dwindling value of the naira.

The session became rowdy 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 the Governor of CBN, Mr. Godwin Emefiele to throw more light on the policy, insisting that 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, stressing that there should be no debate on the matter.

Senator Ndume had earlier said there were only five banks in the entire 27 local government areas in Borno State due to the insurgency in the state. He urged his colleagues to ignore the CBN policy.

On her part, Senator Abiodun Olujimi, said the time was too short to withdraw all the money in circulation without shutting down the economy. She added the Senate should invite the CBN governor for further explanation on the issue.

Also, Senator Apiafi said rural banking had been shut down hence the January deadline should be extended. She argued 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.

On his part, Senator Jibrin said the naira redesign cannot on its own halt terrorism, but could only reduce it.

In his contribution, Senator Chukwuka Utazi said because of the rural nature of the country, the leadership of the Senate should interface with the CBN governor, urging the CBN to visit all rural communities to get first-hand information.

But Suswan and Akpan’s submissions did not go down well with those seeking the extension of the deadline.

It degenerated to a shouting match between Akpan and Senator Solomon Adeola, for about five minutes. 

It took the persistent appeals by Omo-Agege for the session to return to normalcy after 10 minutes of hot arguments among the senators. Omo-Agege said it was the prerogative 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.

Multiple sources close to the federal lawmakers had reportedly told THISDAY that some politicians wanted the National Assembly to pass a resolution directing the CBN to shift the Naira redesign till after the 2023 general election.

Investigation had also revealed that many of the politicians who had perfected plans of rigging next year’s election through vote-buying and who had stock-pilled the naira in their houses, offices and other hidden places were jittery and uncomfortable.

However, their plan to ambush the apex bank’s initiative, which has received the strong backing of President Muhammadu Buhari and economic experts, failed at the Wednesday’s Senate plenary. 

Buhari had declared that his government would not go back on it.