The Senate of the federal republic has through a resolution given legislative backing to the Central Bank of Nigeria’s plan to redesign the nation’s higher value Naira notes in circulation.
Telescope.ng reports the Senate resolution followed a motion presented by the senator representing Kaduna Central, and chairman of the Senate Committee on Banking Insurance and Other Financial Institutions, Malam Uba Sani on Wednesday, November 16.
The motion termed: Redesign Of The New Naira Notes By The CBN: A Call For Legislative Support, noted that pulling the cash outside the banks will augur well for the economy as monetary policy decision-making will be easier.
Explaining the substance of the motion, Uba Sani said that based on the arguments and deliberations by his colleagues, he presented the hoarding of banknotes outside the banking system, with over 80% of naira notes outside the banks.
He said the motion sought to checkmate currency counterfeiting resulting from the prolonged use of the same notes.
Sani noted: “Fewer notes, especially outside the banking system, will curb terrorism financing. In the same vein, the less cash available outside the banking system will reduce corrupt practices engendered by cash exchanges.”
According to the senator, the Senate consequently resolved to provide legislative support for the CBN’s policy to redesign the higher value Naira notes.
He said: “It has also resolved to direct my committee to embark on an aggressive oversight of the currency redesign process to ensure that Nigerians are protected during this process.”
Uba Sani encouraged Nigerians and the general public to comply with the Central Bank of Nigeria’s directive to deposit cash holdings at their respective commercial banks.
The senator said: “I also urge the Senate to support the decision of the CBN given the aforementioned benefits of the currency redesign to the nation.”