The senator representing Kaduna Central and Chairman, Senate Committee on Banking Insurance and other Financial Institutions, Uba Sani, has said that the naira redesign will curb corruption and terrorism financing in the country.
The Nigerian Senate, in a resolution on Wednesday, gave legislative backing to the Central Bank of Nigeria’s plan to redesign the naira notes in circulation.
The motion termed ‘Redesign Of The New Naira Notes By The CBN: A Call For Legislative Support’, noted that pulling the cash outside the banks would do well for the economy as monetary policy decision making would become easier.
The motion led to a rowdy session in the Upper Chamber of the National Assembly.
However, the Senate, after the rowdy session, offered to provide legislative support for the policy.
It also mandated the Senate Committee on Banking and Financial Institutions to go on oversight to ensure that Nigerians were adequately protected from the CBN, banks and other agencies involved in the process.
Explaining the substance of the motion, Sani in the statement said based on the arguments and deliberations by his colleagues, he presented that over 80% of naira notes were hoarded outside the banks.
The lawmaker noted that the motion sought to checkmate currency counterfeiting resulting from the prolonged use of the same notes.
“Less notes, especially outside the banking system, will curb terrorism financing. In the same vein the less cash available outside the banking system will reduce corrupt practices engendered by cash exchanges,” he said.
According to him, the Senate consequently resolved to provide legislative support for the CBN’s policy to redesign the higher value naira notes.
“It has also resolved to direct my committee to embark on an aggressive oversight of the currency redesign process to ensure that Nigerians are protected during the process,” he added.
Sani, who is also the All Progressives Congress governorship candidate in Kaduna, urged Nigerians to comply with the CBN’s directive to deposit cash holdings at their respective commercial banks.
“I also urge the Senate to support the decision of the CBN given the aforementioned benefits of the currency redesign to the nation,” he added.
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