Reps urge CBN to withdraw previous naira notes

The House of Representatives, on Thursday, urged the Central Bank of Nigeria (CBN) to start the gradual withdrawal of previous naira notes and make accessible to Nigerians new notes in N200, N500, and N1,000 denominations.

The Green Chamber charged the apex financial institution to direct Money Deposit Banks to transact companies with their clients in new naira notes to kick off the mopping up of the previous ones.

The decision of the House adopted the adoption of a movement of pressing nationwide significance, sponsored by the member representing Ogbaru Federal Constituency, Anambra State, Mr Victor Ogene, throughout Thursday’s plenary session.

Recall that the CBN in October 2022, launched new N200, N500, and N1,000 notes and commenced the circulations in December of the identical yr.

The apex financial institution’s resolution to withdraw the previous notes was meant with stiff resistance from tens of millions of Nigerians who went by way of untold hardship in the hunt for the then scarce new notes.

After a collection of litigations, the Supreme Court mounted the December 31, 2024 deadline after which the previous notes would now not function authorized tenders within the nation.

Leading the controversy, the Labour Party lawmaker recalled the issue Nigerian went by way of with the choice to revamp the naira, including that CBN’s incapacity to flow into enough new notes, got here in need of making life hellish within the nation.

“Going by the Supreme Court’s subsequent ruling and order, the N200, N500, and N1,000 notes shall cease to be legal tender, medium of exchange for goods and services in Nigeria, and shall also cease to be in circulation as from January 1, 2025,” Ogene stated, stressing that with barely two months to the deadline, the lender of final resort has not proven signal of its readiness to sensitise Nigerians to arrange for what awaits them.

He warned that Nigerians will get up into the same chaotic state of affairs, harking back to what occurred in February 2023, when the previous N200, N500, and N1,000 notes shall stop to be authorized tender and medium of alternate for items and companies as from January 1, 2025.

He argued that the CBN should have began public consciousness campaigns together with the usage of jingles, tv and radio bulletins, social media postings, flyers, and newspaper publications, three months earlier than the deadline.

He additionally expressed concern that moderately than a gradual withdrawal, the CBN continues to be comfortably releasing the previous N200, N500, and N1,000 notes concurrently with the brand new notes for the conduct of enterprise within the nation.

The House resolved to “Urge Central Bank of Nigeria (CBN) to concern extra new N200, N500 and N1,000 notes and start the gradual withdrawal of the previous notes from circulation earlier than the deadline of December 31, 2024;

“ To urge the Central Bank of Nigeria, CBN, to order business banks to forthwith cease money fee to their clients with previous N200, N500 and N1,000 notes however as a substitute, interact in gradual mopping up of the previous notes;

“Urge the Central Bank of Nigeria, CBN to kick-start awareness programmes for Nigerians to be aware and prepare for the deadline of December 31, 2024.”

The House, following the adoption of the movement, referred it to its Committee on Banking Regulations for additional legislative motion

Source

Nigeria

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