The Speaker of the House of Representatives, Femi Gbajabiamila, has criticised the declarations made by President Muhammadu Buhari on new and old naira notes in a national broadcast yesterday as flouting the ruling by the Supreme Court.
The Speaker, in a statement issued yesterday, commended the President for his intervention.
He, however, stated that the Supreme Court had ruled that the old N1000, N500, and N200 notes remain legal tender.
He said, “It is not to the benefit of our country for the Federal Government to act in ways that suggest a wanton disregard for the rule of law.”
Gbajabiamila said the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has failed to publicly admit an error in the monetary policy of the apex bank.
The President had while addressing the nation earlier yesterday said the old N500 and N1000 notes were no longer legal tender in the country.
Buhari, however, said the old N200 note would be legal tender for the next 60 days, till April 10, 2023, while urging Nigerians to deposit their old N500 and 1000 notes with the CBN.
But Gbajabiamila lamented, “Today, citizens and visitors are experiencing grave and unnecessary hardship across our country. They spend hours and days queuing at banks and teller machines to receive stipends of their own money to afford life’s necessities.
“This situation is a consequence of the flawed implementation of the naira redesign policy by the Central Bank of Nigeria. It is also the result of decisions made by the Central Bank’s Governor, Mr Godwin Emefiele, to refuse counsel, be guided by precedent, or abide by the decisions of superior courts.
“Section 20(3) of the Central Bank of Nigeria Act, 2007 provides the statutory authority for the Central Bank of Nigeria to initiate and implement policies for the recall of Nigerian currency. The extant provision is reproduced below: Notwithstanding subsections (1) and (2) of this section, the Bank shall have power, if directed to do so by the President and after giving reasonable notice on that behalf, to call in any of its notes or coins on payment of the face value thereof and any note or coin concerning which a notice has been given under this sub-section, shall, on the expiration of such notice cease to be legal tender, but, subject to section 22 of this Act, shall be redeemed by the Bank upon demand.”
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Meanwhile, the Majority Leader of the House of Representatives, Ado Doguwa, yesterday told the President that the naira redesign policy was making the ruling All Progressives Congress (APC) unpopular.
Doguwa, who is the Chairman of the Special Ad-hoc Committee on Naira Redesign, Cashless Policy, and Naira Swap, stated this after he led members of the committee in an audience with the President at the Presidential Villa, Abuja.
Also present at the meeting with the President was the Governor of CBN, Emefiele, the representative of the Attorney-General of the Federation (AGF) and Minister of Justice, Abubakar Malami, the Inspector-General of Police (IGP), Alkali Baba, the Director-General, Department of State Services (DSS), Magaji Bichi, the Permanent Secretary, State House, Tijani Umar, and the Economic Adviser to the President, Adedoyin Salami.
He said that the committee came to see the President despite his broadcast and his directives to the CBN governor to commend him for that but to also tell him that “It is not yet Uhuru.”
The House leader said he told President Buhari that the Committee will continue to interface with the CBN in the implementation of his directives, adding that the Green Chamber will not hesitate to invoke the instrumentality of the law to call the CBN boss to order if he derails from implementing the directive.
According to him, “One important thing I want to stress is that Mr. President has addressed most of the issues we want to raise with him at the national broadcast this morning. But that notwithstanding, Mr President allowed us to meet him believing the fact that the committee coming to him represents the institution of the National Assembly.
“And when you have issues to do with policies of the government, you have matters that border in lives and livelihood of our people, the best institution to speak for Nigerians is this institution, the National Assembly and in this case, the House of Representatives.
“What excites us is that when we met Mr President, he was already on the ground with those agencies that have something to do with this issue of naira redesign and naira swap. The CBN governor was there at his instance, the representative of the Ministry of Finance was there, the AGF was also represented there, and the IGP was also there.
“We came to say to Mr. President that despite his broadcast this morning, even though he has told the CBN to make some amendments, to take some new steps to ameliorate the hardship this policy has already entrenched in our economy which is impacting negatively on the lives and livelihoods of Nigerians, we told Mr. President clearly that it is not yet Uhuru.
“For instance, the Central Bank has been directed to make money available, this new naira notes should be made available. But how do we ensure that Mr. President’s directive is being carried out? That cannot be guaranteed. Thank God that Mr President addressed us and addressed the CBN governor once again to our face and we used the opportunity to also tell the CBN governor that ‘you must go around to implement the directive of the President as contained in the letters of his speech; not a matter of perception, not a matter of being professional. You cannot be more professional than the feelings of the actual players in the marketplace of the economy.
“No matter what policy you want to bring; no matter how good or decent that policy is, as long as it brings about hardship or pressure to the system, then that policy must be deemed to be otherwise. It is on this note that we told Mr President that we would continue to interface with relevant agencies, especially the CBN governor.
“Of course, while we are discharging our constitutional right to oversight every institution of government, we must ensure that the directive of Mr President is carried out to the letter, failure to do that must involve every instrumentality of the law, legislative instrumentality, to ensure that Presidential orders are being abided by and ensure that the laws of the land are also being respected.
“I want to acknowledge that in Mr President’s speech, he has come on the same page with us as regards the interpretation of Section 20(3) of the CBN Act that states very clearly that if the banknote is redesigned the old currency must be redeemable at time of presentation either at the Central Bank or at the commercial banks.
“This is contained in Mr President’s speech which otherwise not the CBN governor, he said could be redeemable at the Central Bank. The constitution says that the money must be redeemable at the banks.
“With due respect can our local traders have access to the Central Bank? Certainly, policies are made and when those policies are seen to be quite impracticable and inimical to the development of the economy, those of us in the House of Representatives will blow the whistle.
“We have blown this whistle in the National Assembly and we have come this far to blow this whistle to Mr. President while thanking him for the new steps he has taken to cushion the effects of this unfortunate policy
“Of course, I took special apology to some of our colleagues who are not members of our party, but I as a member of the ruling party told Mr. President that the policy in itself is a policy that is against the ruling party, my party because it’s a government policy, Muhammadu Buhari government, government of the APC.
“And Nigeria’s at time of elections are now looking at my government coming up with an unpopular policy. Unpopular because it does not matter if the policy may be seen to be professionally good. Some of us see a lot of things good about the policy, but our worry as members of the ruling party is why now? 30-40 days to elections you come out with a policy that is not widely accepted by Nigeria and whether we like it or not that will be seen as the programme of the government.
“So, those of us in the APC are not happy about it and I believe some of my colleagues in other parties would not see this as a good policy. Not good because the time is wrong
“But I want to state without any fear of contradiction that I share in the perception of Mr President, in the perception, not the CBN governor that there is a need for us to entrench this policy to be able to address some security problems; there is need for this policy so that Nigeria can be seen to be working on the same page with international economies.
“But why do you want us to be cashless at a time when we are facing general elections where security apparatus working to protect the election process would require cash to service their logistics?
“Why will you insist on cashless when even INEC has raised a lot of fears that without cash is needed to carry out activities by the electoral commission.”
He further said that the Electoral Act makes provision for the amounts individuals especially those contesting elections are supposed to have to execute elections.
“I need to have N70m cash, the law has permitted it and as I speak to you, I don’t have it. ATM stations have turned to wrestle grounds.”
*Arrest saboteurs of naira redesign policy, Buhari directs EFCC, ICPC, DSS
Earlier yesterday, President Buhari directed the CBN to release into circulation the old N200 note as legal tender up till April 10, 2023.
Buhari has also directed the anti-corruption agencies to go after those sabotaging the naira redesigning policy thereby causing hardships to ordinary Nigerians.
The President in a national broadcast on the challenges of the currency swap and the state of the nation said he sympathized with the sufferings of Nigerians and was giving the directive to ease the sufferings causes by the scarcity of new notes supply.
He said in line with Section 20 (3) of the CBN Act 2007, all existing old N1000 and N500 notes are no longer legal tender but remain redeem
able at the CBN and designated points.
While disclosing that the approval was a result of wide consultations with relevant stakeholders including the representatives of State Governors, the Council of State, President Buhari said he’s aware that this new monetary policy has also contributed immensely to the minimisation of the influence of money in politics.
This, according to him, is a positive departure from the past and represents a bold legacy step by this administration, toward laying a strong foundation for free and fair elections
The President, who listed the advantages of the ongoing financial reforms embarked upon by the apex bank, said the policy is part of the efforts of his administration to restore the statutory ability of the CBN to keep firm control over the money in circulation.
He, therefore, challenged the citizens to make their deposits of the old notes by taking advantage of the platforms and windows being provided by the CBN.
Buhari also directed the CBN to intensify collaboration with anti-corruption agencies in checking the activities of those who were bent on sabotaging the smooth implementation of the new Naira redesign policy.
He reassured that government would continue to assess the implementation of the policy to ensure that Nigerians are not unnecessarily burdened, adding that the CBN will ensure the availability of the new Naira notes across the country.
While appealing for more understanding from the citizens, he reiterated the commitment of his administration to hand over a financially stable economy to the incoming administration on May 29, 2023.
According to President Buhari, “I have found it necessary to address you on the state of the nation and to render account on the efforts of our administration to sustain and strengthen our economy, enhance the fight against corruption and sustain our gains in the fight against terrorism and insecurity which has, undoubtedly, been impacted by several internal and external factors. “Particularly, I am addressing you, as your democratically elected President, to identify with you and express my sympathy, over the difficulties being experienced as we continue the implementation of new monetary policies, aimed at boosting our economy and tightening the loopholes associated with money laundering.
“Let me re-assure Nigerians that strengthening our economy, enhancing security, and blockage of leakages associated with illicit financial flows remain the top priority of our administration. And I shall remain committed to my oath of protecting and advancing the interest of Nigerians and the nation, at all times.
“To further ease the supply pressures, particularly to our citizens, I have approved the CBN that the old N200 bank notes be released back into circulation and that it should also be allowed to circulate as legal tender with the new N200, N500, and N1000 banknotes for 60 days from February 10, 2023, to April 10, 2023, when the old N200 notes cease to be legal tender.”
