Rising from its first day of sitting after a two month holiday, a fiery Nigerian Senate said the proposed introduction of N5,000 note is unconstitutional and directed President Goodluck Jonathan and the Central Bank of Nigeria {CBN} to stop all action on the issuance and any matter connected therein.
Members of the House of Representatives in same vein deliberated on the note refusing its introduction.
They took turns to critise the planned introduction saying it was not in the interest of Nigerians.
The Senate said the governor of CBN, Malam Sanusi Lamido Sanusi flaunted section 4 (1) and 2 of the constitution of the Federal Republic of Nigeria which vests the legislative powers of the Federal Republic of Nigeria in the National Assembly to make laws for the peace and good governance of the federation or any part thereof.
The Senate fumed at the failure of the CBN to consult it over a policy and rejected a motion to refer the matter to its joint committees of Banking, Insurance and that of Finance to conduct public hearing.
They added that the policy of the CBN on the proposed N5000 currency note will not lead to good economic and monetary governance of Nigeria, adding that Sanusi was being arrogant, and a misleading public officer who claim to have monopoly of knowledge.
Senators overwhelmingly lambasted the Economic Team of President Jonathan for supporting the policy which they say is unpopular and anti people.
Senate President, David Mark, while condemning the policy, accused Sanusi of using hypothetical facts and figures to mislead Nigerians.
He said that the actions of the CBN governor and the argument that the policy would reduce inflation in the country were mere theory that is unacceptable by Nigerians, adding that government should be bold to reverse any unpopular policy.
He said, “The important thing is that if Nigerians say they do not want a particular policy at any given moment, there is no harm in government retracing their stand on the issue and I think that is the situation that we find ourselves.
“I have listened to the arguments from those who support it but those arguments are simply not convincing. They appear to me to be highly theoretical and technical in nature and they do not address any practical issue on ground.
“Any policy that does not address issues directly but just talking about indices we cannot verify for now should wait. We have not reached that level where we are just talking of hypothetical cases all the time.
“I think the disadvantages of the N5000 notes at the moment far outweigh not introducing it and on balance, we should not go for it. And also, from the contributions on the floor, we are all in support of the fact that the timing is wrong and the policy is unnecessary at the moment and the arguments being advanced are not convincing and there is no urgent need for it to take place now.
“There is no ambiguity on our stand on the issue. I am not sure that Sanusi is aware of the Constitution, if he was, he would make reference to us before addressing the issue.”
According to Senator Ita Enang the Chairman Senate Rules and Business Committee who stood on order 52 of the Senate standing order on matter of urgent National importance who sponsored the motion in the lead debate ask the senate to reject the new N5, 000 because it is capable of increasing the already biting inflation trend in the country.
Enang who led the debate on the motion stated that the CBN policy would lead to widespread corruption and untold economic problems for the nation.
He disclosed that the senate considers the proposal as a direct negation of the cashless policy of this administration which discourages cash transaction in preference for electronic cashless transactions, now in operation.
Enang insisted that the policy will create multiple economic problems like inflation, corruption and security challenges, and would erode the value of the nation’s currency and ruin the economy.
According to him “ the introduction of the said N5,000 note and the withdrawal of notes, conversion of some to coins and general re-denomination of the Naira has the ultimate effect of de-valuing the Nigerian Naira making lower currencies to be coined, almost non-value monies for transactions and subtly yield to the off-demand of certain international financial institutions for the devaluation of our currency”
The Chairman, Senate Committee on Media and Publicity, Enyinnaya Abaribe, who addressed journalists at the end of plenary accused the CBN of contravening the section 4 (2) of the 1999 constitution.
Abaribe said, “The proposed action is illegal because it directly contravenes section 4 (2) of the constitution.
The section empowers the National Assembly to legislate on issues of currency, coinage, and legal tenders. The CBN acted ultra vires by even contravening its own law too because section 8 states that they must consult with National Assembly.”
The Leader of the Senate Victor Ndoma-Egba while seconding the motion said monopoly of wisdom and knowledge is alien to democracy adding that in a democracy it is the right of the people to reject even what is good to them.
He said “I am not an economist and I don’t pretend to be one. A former President of this country, Chief OlusegunObasanjo and other prominent Nigerians has spoken against the introduction of this new note and we must listen to them” warning that government must re-affirm the fight against corruption beyond spoken words and must not allow people to move around with millions of naira.
Senator Smart Adeyemi said that the introduction of the new policy was part of the agenda of the World Bank and the International Monetary Fund {IMF} saying “Nigerians have spoken that the introduction of the N5000 note is to further impoverish Nigerians”.
Adeyemi cautioned President Goodluck Jonathan to warn his advisers not to mislead him in the running of the country accusing the CBN governor Sanusi Lamido Sanusi of sabotaging the efforts of the National Assembly and frustrate them from amending the Act setting up the CBN.
“The policy will create multiple economic problems like inflation, corruption and security challenges, and would erode the value of the nation’s currency and ruin the economy.
Deputy Senate President, Ike Ekweremadu, who also opposed the policy urged the CBN governor to listen to the people warning that his failure to do so may lead to disaster for the country.
“Section 4 (2) is clear that sovereignty belongs to the people. Any government that fails to listen to the people is heading for disaster. Let Sanusi listen to the people today.” He warned.
Senator Atai Aidoko, ANPP, Kogi also said “This policy displayed how principal officers mislead Mr. President. This is an agenda of the West to colonize this country. This also bothers on the issue of arrogance of the CBN governor.
He has displayed so much arrogance, insulted a former President, he has to be called to order.”