Senate Votes to Extend Naira note Deadline to June

BY: News Peddlers

The redesigned 1,000, 500, and 200 naira denominations

The Nigerian Senate voted on Wednesday to give the Central Bank of Nigeria (CBN) until June 30, 2023 to phase out certain naira notes.

Following the redesign of the 1,000, 500, and 200 naira denominations, the CBN set a January 31 deadline for the withdrawal of the old notes from circulation.

Since then, the policy has sparked debate, with many stakeholders criticising the decision as politically motivated and unrealistic. National elections, often heavily influenced by money, are scheduled for February 25, according to the electoral body INEC.

The CBN has maintained that its cash limit policy was free of political interference and was intended to save the country's economy from individuals who had hoarded more than 80% of the currency out of bank vaults, ostensibly for criminal enterprises.

Senator Ali Ndume (APC-Borno) moved to extend the circulation of the old notes, citing Senate Rule Orders 45 and 51. Senator Adamu Aliero seconded the motion (APC-Kebbi).

Mr Ndume contended that the deadline for withdrawing old notes from circulation was too short, particularly for his constituents in southern Borno, where years of insurgency had limited bank availability.

As a result, the Senate urged the central bank to postpone the implementation of its new cash policy.

The World Bank expressed concern last week about the impact of the naira redesign on Nigerians' livelihoods, stating that the timing and short transition period may have a negative impact on the country's economic activity.

"At the moment, households and firms are already facing elevated financial pressures from prolonged, high inflation, which has recently been compounded by external food and fuel price shocks, as well as severe floods," the global financial institution said.

(People Gazette)