Members of both the Senate and the House of Representatives resumed from their recesses on Tuesday with the controversial plan by the CBN taking the front burner.
While the Senate unanimously adopted a motion urging “The President and
to direct the CBN to stop all actions on the issuance of the proposed
N5000 note and all matters connected therewith,” the House members
directed the apex bank to put the plan on hold for four weeks.
The House also queried the legality of Jonathan’s Economic Management Committee and its competence in approving the currency review plan.
The Senators said the CBN’s plan to introduce the N5000 note without the input of Nigerians representatives is illegal because Section 4(1 and 2) of the 1999 Constitution and Section 8(2) of the CBN Act of 2007 require the National Assembly to be part of the process of introducing a new currency review.
The resolution arose from a motion by Senator Ita Enang (Akwa Ibom North), asking Sanusi to halt action on the proposed currency.
Leading the debate on the motion, Enang said the Senate was aware of section 18 of the CBN Act, 2007, which conferred on the bank, the power to arrange for the printing of the currency notes and minting of coins among others.
He said the Senate was also aware of section 19 of the Act which allowed the bank to issue denominations and fractions with the approval of the President on the recommendation of the board.
He said, “The power being granted by the Legislature is subject to the supervisory powers of the Legislature which granted or donated the powers under the Act if the exercise of the powers is contrary to good economic conscience and the wellbeing of the people and the national economy.
“The introduction of the said N5000 note and the withdrawal of notes, conversion of some to coins and general redenomination of the naira has the ultimate effect of devaluing the naira, making lower currencies to be coined, almost non-value monies for transactions and subtly yield to the off-demand of certain international financial institutions for the devaluation of our currency.
“Section 4(1 and 2) of the constitution vests the legislative powers of the Federal Republic of Nigeria in the National Assembly to make laws for the peace and good governance of the federation or any part thereof; whereas this policy of the bank on the Naira may not lead to good economic and monetary governance of Nigeria requiring re-examination by the legislature.”
Enang also said that the currency plan negated the the newly introduced cashless transaction policy. “In cashless economies, high bills or currency notes such as the proposed N5000 is not required as transactions are conducted from the payer to the payee’s accounts without any need for physical exchange or handling of cash by any of the parties," he said.
The House also queried the legality of Jonathan’s Economic Management Committee and its competence in approving the currency review plan.
The Senators said the CBN’s plan to introduce the N5000 note without the input of Nigerians representatives is illegal because Section 4(1 and 2) of the 1999 Constitution and Section 8(2) of the CBN Act of 2007 require the National Assembly to be part of the process of introducing a new currency review.
The resolution arose from a motion by Senator Ita Enang (Akwa Ibom North), asking Sanusi to halt action on the proposed currency.
Leading the debate on the motion, Enang said the Senate was aware of section 18 of the CBN Act, 2007, which conferred on the bank, the power to arrange for the printing of the currency notes and minting of coins among others.
He said the Senate was also aware of section 19 of the Act which allowed the bank to issue denominations and fractions with the approval of the President on the recommendation of the board.
He said, “The power being granted by the Legislature is subject to the supervisory powers of the Legislature which granted or donated the powers under the Act if the exercise of the powers is contrary to good economic conscience and the wellbeing of the people and the national economy.
“The introduction of the said N5000 note and the withdrawal of notes, conversion of some to coins and general redenomination of the naira has the ultimate effect of devaluing the naira, making lower currencies to be coined, almost non-value monies for transactions and subtly yield to the off-demand of certain international financial institutions for the devaluation of our currency.
“Section 4(1 and 2) of the constitution vests the legislative powers of the Federal Republic of Nigeria in the National Assembly to make laws for the peace and good governance of the federation or any part thereof; whereas this policy of the bank on the Naira may not lead to good economic and monetary governance of Nigeria requiring re-examination by the legislature.”
Enang also said that the currency plan negated the the newly introduced cashless transaction policy. “In cashless economies, high bills or currency notes such as the proposed N5000 is not required as transactions are conducted from the payer to the payee’s accounts without any need for physical exchange or handling of cash by any of the parties," he said.
When asked for his reaction, Sanusi said "no comment!"
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