Senate Moves To Approve N5,000 Note

The Nigerian senate may go ahead to approve the Central Bank’s plan to introduce the N5,000 note as well as phase out some smaller denominations into coins.

The indication was given by Senator Eyinnaya Abaribe (PDP, Abia South) via a telephone chat with our correspondent.

Abaribe who is Chairman, Senate Committee on Media and Publicity said, “You cannot take a decision that affects the economy of the country without including the Parliament,” Abaribe said. “You cannot take such a momentous decision which affects the economy in very fundamental ways without reaching (out) to the Parliament.”

He said, “The CBN was expected to consult with the Senate Committee on Banking that supervises the CBN, at least to let everybody know the details of what [they] were doing. You are not supposed to act with disregard of Parliament. The Parliament has oversight functions.”

Further, “The Senate is saying that the major policy change that the CBN is doing has implications for the country, in terms of inflation.  Every stakeholder in the Nigerian government must be carried along. Let us know what you are doing, why you are doing it, the reasons behind that, and everything, before you go ahead. This is international best practice.”

The remarks from Senator Abaribe imply that the Senate may just be upset it was not carried along on the project. Many cynical Nigerians will begin to wonder if the Senate is merely interested in how the N40 billion earmarkerd for the project will be shared.

On the other hand, analysts are expecting that Sanusi will have a tough time selling the idea to the House of Representatives who have already invited the CBN Boss to testify before it.