Senate Committee directs CBN to suspend introduction of N5, 000 notes Reviewed by Momizat on . The Senate Committee on Banking, Insurance and other Financial Institutions on Monday directed the Central Bank of Nigeria to suspend the introduction of N5, 00 The Senate Committee on Banking, Insurance and other Financial Institutions on Monday directed the Central Bank of Nigeria to suspend the introduction of N5, 00 Rating:
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Senate Committee directs CBN to suspend introduction of N5, 000 notes

The Senate Committee on Banking, Insurance and other Financial Institutions on Monday directed the Central Bank of Nigeria to suspend the introduction of N5, 000 notes until the Senate was properly briefed.

Illustartion of the planned N5000 with leading female activists. Photo: Courtesy Vanguard newspaper.

The Chairman of the committee, Senator Bassey Otu (PDP- Cross River) issued the directive while speaking to journalists in Abuja.

Mr Out said that the re-denomination of the currency required the approval of the National Assembly, warning that the CBN must avoid sending the wrong signals to stakeholders in the economy.

He said it was vital for the CBN to discuss the implications of the currency re-denomination with the Senate before it was implemented.

“I believe that a project of this nature requires parliamentary approval because there are numerous fiscal implications on the entire economy.

“The CBN must be very careful in order not to send the wrong signal to the domestic sector and external partners that the Nigerian currency is valueless.

“So, we are sending a letter to them (CBN) to stop all further actions on this until the Senate of the Federal Republic is properly briefed,” he said.

He warned that the conversion of some denominations into coins would lead to a waste of public funds as the previous exercise did not yield the desired result.

“In 2005, the CBN undertook a major currency restructuring to re-coin some denominations which ran into billions of Naira.

“It did not work at all because both the goldsmiths and the blacksmiths converted the coins to moulding bangles, earrings and so on,” he added.

The committee chairman said there were other mechanisms available to the apex bank to tackle the problem of inflation other than the re-nomination of the nation’s currency.

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  • http://profile.yahoo.com/KX3ZLVEENVBZY64RM3B3QCO5PU olisa

    don’t u guys proof read before publishing??  too many typos channels…

  • Osita Onyemaobi

    I THINK IF CBN IS TALKING ABOUT CASHLESS SOCIETY, THEY SHOULD BE THINKING OF EVEN REMOVING THE 500 AND 1,000 NAIRA BILLS. WHAT DO WE THEN MEAN BY CASHLESS SOCIETY IF WE ARE INTRODUCING HIGHER DENOMINATIONS.DOES IT MEAN THEY ARE ENCOURAGING PEOPLE TO CARRY CASH? DON’T THEY THINK THAT THE HIGHER VOLUME WILL DISCOURAGE PEOPLE.
    I ALSO WANT TO KNOW WHERE ALL OUR COINS ARE BEFORE NEW ONES ARE INTRODUCED.

  • http://www.facebook.com/XownSolutions Segun Xown-Akande

    Sanusi is confused. He just want to be attracting publicity everywhere. If we are talking about cashless society why is he engaging on what is going encourage people to carry cash. With N5,000 that means N1m or more can enter my trouser pocket easily. This is just not right. I hope the house is trying to stop this beautiful nonsense and not trying to get their own share of the fraudulent acts as this is initiation of fraud on CBN part.

    Infac they should withdraw N500 and N1000 notes from circulation to boast the cashless society. Also, they should come up with reward system for people Using POS to pay like in developed country. Online payment should be encouraged. Commercial Banks should deployed more POS and not more ATM.

  • http://twitter.com/Ediscoone Efegherimoni .G.Edir

    LET CBN BRING BACK THE COINS THAT WE ARE USING BEFORE LIKE THE 1COINS BEFORE TALKING ABOUT #5000 NOTE.OUR ECONOMICS IS TOO HIGH THINGS IS GETTING COST ALL DAY LET DO THING ABOUT.

  • http://profile.yahoo.com/EMPWMAX2HNFYDLFRTS6VG2Z6SE Plasma

    Leave your money in the bank and swipe your card. Thats the way to go.

  • Viaen_T

    I will say again that Sanusi is a confused man.What does N5000 notes get to do with cashless policy.He is just looking for ways to make embezzling easier,its the height of corruption,we the masses is against it.I don’t know what the FG is doing,there are better things to be done to elevate the masses rather than these fraudulent act to boost the politicians……………I beg the house to put a stop to this nonsense

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