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Nigerian Senate Stops CBN’s Proposed 5,000 Naira Bill

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Nigerian Senate Stops CBN’s Proposed 5,000 Naira Bill

senate halts 5000 naira

August 27, 2012 – Nigerian Senate Stops CBN’s Proposed 5,000 Naira Note

Nigerian Senate on Monday evening has directed CBN to put a stop to plans of introducing 5000 Naira note in January 2013 with immediate effect. naijagists.com

In a press conference in Abuja on Monday, the senate claims the Central Bank of Nigeria has no right to embark on such journey because the consequences far outweigh the benefits.

Here is a comment made by the Senator Bassey Otu, the Chairman, Senate Committee  on Banking, Currency, Insurance and other Financial Institutions

“The  CBN must be very careful in order not to send a wrong signal or message  to households, domestic sector and even the external ones that the  Nigerian currency is valueless, which I believe it is definitely not,  and that for every unit of value they need to carry a large quantity of  cash.”

“As a committee we should do our work, this  morning there is a burning issue that is going on in our country and  there is need for us; as a committee to comment on this topical issue. I  am the chairman of the senate committee on banking, currency and other  financial institutions. We have also read in the papers just like you  about the currency restructuring that the CBN embarked on.

“I  believe that a project of this nature requires parliamentary approval  because there are numerous and fiscal implications on the entire  economy.”The  CBN in 2008 and 2009 came up with a proposal to re-denominate the  currency, that was even to take off the zeroes. This was just 2008 and  2009 and here we are in 2012 we have seeing a kind of policy somersault  even though we understand the dynamics of the sector very well. I  believe that we have to be well briefed on this.

“Also  in 2005, the CBN undertook a major currency restructuring which ran  into billions of Naira. Till date a proper value has not been done to  know it’s costs to the Nigerian taxpayers and the extent of the benefits  and in that 2005 coinage, I think it did not work at all because both  the goldsmith and the blacksmith converted the coins to molding bangles,  earrings and so on etc.”So,  we believe that the coinage works very well where there is  infrastructure to take it like a half, probably like a parking where you  go and put it etc. We have not developed that real basic infrastructure  and those coins most of them are nowhere really to be found.

“So,  the CBN will have to prove that the policy is not a clear contradiction  or at variance with cashless society, which they are even yet to  justify and whether this is the popular economic way to go.”So,  we are asking and we are sending a letter to them to stop all further  actions on this until the senate of the federal Republic is properly  briefed”, he said.

This is a good move.

18 Comments

18 Comments

  1. Hammed

    August 28, 2012 at 4:19 AM

    Is a good dicision

  2. Pc obi

    August 28, 2012 at 5:08 AM

    Well done senators, u ve stopped anothet means of wasting our money

  3. Niyi

    August 28, 2012 at 6:38 AM

    Mr Lamido,by doing this you are insulting the respect nigerians have for you, you are adviced to please dont strangle our economy the more, there are more pertinent issues you can help tackle in our stenching economy,those are areas we expect you as a reformer to wave into…else this might be read for you and your cohorts selfish interest..Nigerians stops you.

  4. baba k

    August 28, 2012 at 7:27 AM

    i like what d sanet has done. We dnt need 5000 naira note

  5. James

    August 28, 2012 at 7:31 AM

    Good,i don’t see any good this will bring to us….it will rather reduce the value our currency…

  6. Solo

    August 28, 2012 at 2:39 PM

    This is rediculous, whatfor? If they dont have a better thing to do, they sould stepdown, or handover to another person.

  7. ESON ESORISON

    August 28, 2012 at 5:26 PM

    Thank you senators. I think mr Lamido should be diagnosed. Guess, he’s lost it!

  8. Dignity

    August 29, 2012 at 9:38 AM

    We d youth say no 2 ur sugest mr senetor.i dnt ve much 2 say than in a society were there is no law there is no offence.

  9. okoye uchenna

    August 29, 2012 at 2:44 PM

    SENATE thanks for job well done,i thought Sanusi was a great economist but now i know he is not,and not worthy to be CBN governor.Introducing N5000 note will not do us any good,rather it will keep on getting worst.Nigeria is the only great country that doesnt make use of coin,and thats where our economic problem started.Our N5,N10 and N20 has no value anymore just bcos our leaders are creating denomination every time they like.South Africans make use of their last money which is cent.meanwhile,their highest denomination is 200,forthermore,dollar is the most popular currency in the world,but u can only see 100 dollars.so if Mr Lamido does nt know what to do,he should resign.

  10. Okwueshine Hillary I

    August 29, 2012 at 8:28 PM

    I disagree with CBN, N5000 note will do us no good instead it will make our currency valueless. The best thing cbn can do 4 this country is to disaprove of N100 note upward no introducing N5000 note. I say no! no!! no!!! To CBN.

  11. Ugochukwu Eusebius

    August 29, 2012 at 9:50 PM

    All senate members long life and prosperity.am happy that dis issue of #5000 is stoped.long life Nigeria.

  12. De-comrade

    August 30, 2012 at 10:02 PM

    To begin with, I’m yet to understand the amount of selfish popularity our Apex Bank governors derive from continually degrading the Nigerian currency. Of what benefit is 1000 and 500 notes, even 200 note to our daunting economy? Just like a fellow commented, great economies of the world like the US maintain 100 as their highest paper bill. And then we are here talking about currency restructuring. I think if the right motive was to be followed the reverse would be the case. The NAIRA must gain its pride of place in the world economy! It should be pegged at 100 highest note. Secondly, the so called CBN governors who take delight in sponsoring such obnoxious policies should be probed to detail out the extent of selfish benefits that they make by misappropriating the innocent taxpayers money in the name of currency restructuring every now and then. Enough is enough! Of what use is 5000 note to the cashless era which is starring us in the eye! Nigerians are not confused people and as such, we deserve the leadership of consistent focused statesmen.

  13. Usman Saiki

    September 1, 2012 at 7:37 AM

    I wnda y nigerian leaders do tot of policies wtout measurin d economic effect on d citizns.u introduce cashless economy n nw your introducing higher denomination of currency 4 people carry large sum, i call dis random walk wt trend variable.pls seek economists advise wen initiating policy.

    • Sandra Efua Ogbudo

      September 1, 2012 at 7:53 AM

      The economist himself. True talk!!!

    • Nene Ibrahim

      September 1, 2012 at 2:34 PM

      Econoimist nd welldone bro

      • ademola

        September 6, 2012 at 12:58 PM

        I wounder y the Cbn governor is introducing the sum of five thousand naria, he no wht is doing he want to steal our money easily,

  14. ay

    September 6, 2012 at 1:14 PM

    I hate Nigerian leaders because all there thinking is about money and them safe i pry god should inter vain in dis country five thousand naria note there is something behind it.

  15. Adebayo K. Bolaji

    October 18, 2012 at 1:54 PM

    I don't understand how far we need to go in this country before way can get things right, No proper plan, only thinking about the rich, our economics get was more and more as we even trying to make more of large currency to the nation. resources are all available no one of them interested in produce, we consume more why produce little.we looking at other people currency we are in Currey. Nigeria is 52 with time ahead of us to make a great Nation why can the so call politician don't realize let wait for the right time to people who can do it. It gradually

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