Despite the Supreme Court's decision that all naira notes must remain in circulation, the House of Representatives has asked the Central Bank of Nigeria (CBN) to phase out the 1,000, 500 and 200 pound notes by 31 of December.
The House asked the CBN to issue more new 200, 500 and 1,000 pound notes and begin the gradual withdrawal of old notes from circulation before the December 31 deadline.
This resolution followed a motion of urgent public importance moved by Afam Oghene (LP, Anambra) on Thursday.
The House wrongly stated that the Supreme Court had set a deadline of December 31, 2024 for the withdrawal of the old notes, while the court's order mandated the indefinite coexistence of the coins.
Naira shortage
In October 2022, the CBN initiated a currency swap policy that caused serious hardship to Nigerians across the country.
For many members of the ruling All Progressives Congress (APC), the policy was seen as a ploy to sabotage the party and its then candidate, Bola Tinubu.
To mitigate the difficulties, several state governments sued the federal government, urging the Supreme Court to reverse monetary policy.
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In March 2023, the Supreme Court ordered the CBN to continue accepting old banknotes from Nigerians until December 31, 2023.
In November of that year, the Attorney General and Minister of Justice, Lateef Fagbemi, approached the Supreme Court to allow the two currencies to continue to be used.
The Supreme Court panel led by John Okoro ruled that the old banknotes will remain legal tender until they are replaced by redesigned banknotes.
The motion
Introducing the motion, Oghene stated that uncertainty persists in the country regarding the deadline, and many do not know what will happen to the old currency.
He also stated that the CBN is yet to initiate sensitization efforts on the retirement of the old banknotes.
“CBN has not shown any sign of sensitization nor initiated any awareness program to remind Nigerians of this important economic policy in order to help them prepare for the 12/31/2024 deadline.
“Nigerians will be plunged into even more chaotic situations than those that occurred in February 2023, when the old 200, 500 and 1,000 pound notes will no longer be legal tender and a means of exchange for goods and services from 1 January 2025,” he stated. saying.
He further stated that the CBN is still issuing “the old ₦200, ₦500 and ₦1,000 notes mixed with the new ₦200, ₦500 and ₦1,000 notes for commercial transactions in Nigeria, instead of phasing out the old ₦200, ₦500 and ₦1,000 notes. circulation or instruct commercial banks to do so by issuing only the new banknotes.”
Despite these false claims, neither the Chairman, Vice President Ben Kalu, nor the members debunked them as the motion was not debated.
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MPs voted in favor of the motion when Mr Kalu put it to the vote.
Resolutions
As a result, the House urged the CBN to order commercial banks to immediately suspend cash payments to customers using the old ₦200, ₦500 and ₦1,000 notes and instead begin phasing out the notes. ancient.
The House also urged the CBN to launch awareness programs to ensure that Nigerians are informed and prepared for the December 31, 2024 deadline.
Finally, the House directed the House Banking Regulations Committee to ensure compliance and report back to it within 21 days.