The House of Representatives yesterday invited the governor of Central Bank of Nigeria, Malam Sanusi Lamido Sanusi, to appear before it and explain the rationale behind the introduction of the proposed N5,000 note even as it distanced itself from the bank’s cashless policy.
Chairman of the House Committee on Banking and Currency, Hon. Jones Chukwudi Onyereri, who disclosed this at a press briefing in Abuja yesterday, said the CBN governor will among other things brief the House on the state of the cashless policy and the intendment of the proposed N5,000 note.
According to the chairman, “The House committee will invite the management of the Central Bank in an effort for the Committee to know whether the Central Bank is still pursuing the cashless policy, and if they are, how does this higher currency note compliment the cashless policy or if it contradicts the cashless policy, what are the next steps.
Onyereri noted, “The Committee on Banking and Currency has been briefed extensively on the cashless and wireless payment system policy of the Central Bank, which we understand is designed to reduce the actual cash in circulation while not affecting the volume of money available to citizens; this simply means cashless policy is not a monetary policy instrument used to reduce cash in circulation, as it leaves the cash available in the system unaffected while at the same time substantially reducing the volumes of currency in circulation by converting currency to electronic payment codes and systems.
“This is the direction the Central Bank has been following. The understanding is that carrying less cash is in every body’s interest as it reduces the risk, it reduces the money spent on printing currency and it reduces the money spent on movement of currency as well as on security and safe guards for large consignments of currency”, he stated.
The chairman explained further “We understand that the cashless policy encourages payment with a credit card, debit card or mobile money, which means a citizen will avoid the high risk of travelling with currency for large ticket transactions.”
The chairman who also disclosed that the House had no prior information about the introduction of the new denomination said ” whereas we fully respect the separation of powers enshrined in the Constitution and the Central Bank’s autonomy as provided by the Central Bank Act 2007 as amended as well as the Banking and Other Financial Institutions Act, we have a responsibility to the Nigerian people to engage the Executive branch on issues that may have a far reaching effect on the national economy, and affect the day to day lives of the ordinary Nigerian.
Filed Under: News