Nigerian lawmakers are unhappy with the 10-day extension granted by the Central Bank of Nigeria (CBN) for the swap of the old naira notes and have threatened to arrest the CBN Governor
The Apex Bank Governor, Godwin Emefiele, announced a 10-day extension on Sunday and 7 days grace period after a brief meeting with the President of Nigeria, Muhammadu Buhari,
However, a swift response from the Committee’s Chairman and the House’s Majority Leader, Alhassan ado Doguwa threatened to sign an arrest warrant to force Mr Emefiele to appear before the Committee.
The Committee has demanded a six-month extension to give Nigerians enough time to swap the N200, N500, and N1000 notes.
According to Doguwa, the policy is capable of frustrating the forthcoming general election in February 2023.
The announcement for a new naira note was first made public on October 26, after which January 31 was fixed as the deadline for the validity of the old notes.
Nigerians complained that there were limited new notes as January 31 approached. They also accused the banks of still dispensing old notes via their ATM.
After meeting with Mr Buhari on Sunday, Godwin Emefiele announced that the deadline was moved to February 10, and 7 days period would end on February 17,
The move is opposed by the House Committee led by Doguwa, who demanded six months extension and urged the CBN to comply with sections 20, sub 3, 4 and 5 of the CBN Act.
(3) Notwithstanding sub-sections (1) and (2) of this section, the Bank shall have power, if directed to do so by the President and after giving reasonable notice on that behalf, to call in any of its notes or coins or payment of the face value thereof and any note or coin with respect to which a notice has been given under this Sub-section, shall, on the expiration of the notice, cease to be legal tender, but, subject to section 22 of this Act, shall be redeemed by the Bank upon demand.
CBN Act
(4) It shall be an offence punishable by a term of imprisonment of not less than 5 years for any person to falsify, make or counterfeit any bank note or coin issued by the Bank, which is legal tender in Nigeria.
(5) A person who refuses to accept the Naira as a means of payment is guilty of an offence and liable on conviction to a fine of N50,000 or six months imprisonment: Provided that the Bank shall have the power to prescribe the circumstances and conditions under which other currencies may be used as a medium of exchange in Nigeria.
“The 10-day extension for the exchange of the old naira notes is not the solution: we, as a legislative committee with a constitutional mandate of the House, would only accept clear compliance with section 20 sub 3, 5, and 5 of the CBN act and nothing more,” Doguwa said.
He added, “Nigeria is a developing economy, and a nascent democracy must respect the principle of the rule of law. And the House would go ahead to sign an arrest warrant to compel the CBN Governor to appear before the ad-hoc Committee.”
Doguwa and the Committee believed that the 10 days extension was a mere political gimmick to deceive Nigerians and worsen economic and social livelihood.
He insisted the CBN governor must appear before the Committee or face an arrest.
He said, “Security agencies and their operations, especially at the state level are generally funded through cash advances and direct table payment of allowances to operatives during election.
“
