More controversies trail Naira swap
…as Reps, CBN, Banks disagree over 31st Jan deadline
…Reps recommend Emefiele’s arrest
…Gbajabiamila threatens to sign Arrest warrant next week, if…
…There is a dark horse behind the agenda — Investigative Committee
…We are bound by CBN’s directives, House should decide — Banks
The exchange of the old Naira notes with their equivalent new designs, putting in view the January 31st deadline set by the Central Bank of Nigeria (CBN) brewed more controversies on Thursday with hostilities among the House of Representatives, the apex bank and commercial banks in the Country.
The redesign of the Naira by the CBN has since generated controversies with both chambers of the National Assembly questioning the rationale behind the policy,
with invitations extended to summon the CBN Governor, Mr. Godwin Emefiele to justify the policy.
On Thursday, there were more issues rousing from the subject as the Speaker of the House of Representatives, Femi Gbajabiamila, declared his readiness to issue a warrant of arrest on Emefiele if he fails to appear before its committee.
Gbajabiamila said the House against its planned adjournment of plenary till February 28 for the general elections, may reconvene on Tuesday to take an action against Emefiele for failing to honour the summon.
Although he acknowledged Emefiele as his friend, Gbajabiamila stated that he would not hesitate to demand the Inspector-General of Police to effect the arrest of the CBN governor and forceful appearance before the House.
Tension over the January 31 deadline set by the CBN for the exchange of the old notes with the newly designed equivalents has become intense as the deadline draws close amid scarcity of the new notes, informing the House of Representatives setting up an ad-hoc committee to investigate the scarcity of the new notes at the Deposit Money Banks, also known as commercial banks.
Checks till this week have shown that majority of the Automated Teller Machines (ATM) of commercial banks are still dispensing the old notes a few days to the next week January 31st, deadline.
The Chairman of the House of Representatives committee, Alhassan Ado-Doguwa, at the plenary on Thursday, informed the House about the non-appearance of the CBN Governor before it on Wednesday, noting that the committee had rescheduled the meeting to 1pm on Thursday.
However, Gbajabiamila also informed the House that the CBN had written to the Clerk, informing the House of Emefiele’s inability to appear before the committee on Thursday.
The Speaker said the House would exercise its powers as contained in Section 89 of the 1999 Constitution, noting that the CBN Act allows the admittance of an old naira note by banks, even after it had ceased to be legal tender.
“I have no choice now. On Tuesday when we resume to invoke the provision of section 89 of the constitution, you must remember that the summons of CBN was simply based on a motion to clarify a gap and to know where the problem (lies), whereas on hand, bankers are saying that they don’t have sufficient new notes to dispense to the commercial banks, on the other hand, the regulator, the CBN is saying that yes they do have enough notes to dispense. So, somewhere in there lies the truth. How can we get these monies to the public? The president gave his approval based on what he was told. So, on Tuesday, this will follow the proper procedure and invoke or provision of section 89 to compel the presence of the CBN,” he said.
The House had on Tuesday called on President Muhammadu Buhari to intervene on the crisis occasioned by the January 31 deadline of the CBN.
The House called “on President Muhammadu Buhari to intervene in the insistence of the CBN on the tight deadline for the implementation of the cashless policy and currency swap.”
Also, the House had urged the CBN to extend the implementation of the cashless policy to at least six months as well as review the daily withdrawal limit and the charges therefrom.
The resolution followed the unanimous adoption of a motion of urgent public importance moved by a member of the House from Katsina State, Sara Soli, at the opening of the plenary on Tuesday.
On Wednesday, the CBN failed to appear before the committee, with both sides blaming it on short notice.
Apart from asking the CBN to extend the window for swapping the old notes with the newly redesigned one by six months, the House had invited the banks to a meeting on Wednesday over the scarcity of new naira notes.
The Managing Directors/Chief Executive Officers of the banks, under the aegis of the Bankers’ Committee, were to meet with an ad hoc committee of the House to be chaired by the Majority Leader, Alhassan Ado-Doguwa.
The House had particularly resolved that the banks should be invited to explain the alleged supply shortage from the CBN, after which the lawmakers would invite the leadership of the apex bank for questioning.
…We are bound by CBN’s directives, House should decide – Banks
Meanwhile, upon appearance on Thursday before the committee, commercial banks told the House of Representatives that they had no choice and were bound by the guidelines of the CBN, their regulator, in the implementation of the cashless policy, leaving the lawmakers to take a unanimous decision.
The banks in a meeting with the adhoc committee of the House said that they are getting allocation of the new naira notes from the CBN and dispensing same to their customers through ATM, maintaining that the January 31 deadline of the CBN was still sacrosanct.
The banks which were respectively represented by their various staff said due to the cashless policy, they were not expected to collect as much money as deposited with the CBN.
They also revealed that the new naira notes can only be accessed through the ATM and not at the counters.
The banks in their respective submissions disclosed that the reason why the new Naira notes have been scarce is in furtherance with the CBN’s cashless policy, disclosing that while they have been receiving the new notes and returning the old notes, the supply of the new notes from the CBN to commercial banks has in the last few weeks, been fluctuating and insufficient.
Representative of Access Bank, Hadiza Ambuza said, “We are collecting the money and loading them at the ATM as quickly as we get them. Unfortunately, we are not getting them quickly. We have gotten about 10 per cent of the total money. That’s the challenge that we have. We are doing the best we can up until the deadline.”
Representative of Sterling Bank, Orlando Umoren said, “The reason why the new naira note is not coming: it is in the furtherance of the cashless policy. The banks are still under pressure to ensure that they met the deadline.”
Representative of Fidelity Bank, Hassan Umar said, “We do receive about 60 per cent of what we deposited with the Central Bank in terms of the new notes.”
…Reps recommend Emefiele’s arrest
The responses of the bank’s representatives appeared to have fallen short of the lawmakers expectations, as they lamented lack of harmony in figures presented.
“It is very discouraging that you don’t have figures. We need to have the fact and figures when the CBN is insisting we have given you enough.
“When CBN is issuing a guide that is not in the interest of your customers, you don’t ask them? You are shortchanging your customer. You collect the old notes across the country and dispense the new notes only through the ATM,” the Chairman of the Committe said.
Doguwa who read section 20 (3) of CBN Act and distributed copies amongst the bankers said a dark horse was behind the agenda, stressing that the committee would recommend that the Speaker invokes the relevant sections of the law to issue a warrant of arrest on the CBN Governor.
“It is our position of this committee and by extension, the position of the house of representatives that the letter they have earlier sent to us is only an action in futility. The House does not count on that letter whatsoever and it holds no water at all.
“I want to rule that the Central Bank of Nigeria through its chief executive, who is the Governor of the Central Bank, has decided to flagrantly disregard and disrespect the institution of the legislature. And on this note, I would want to say that this committee will outrightly inform the House.
“Commercial banks are complaining, their customers are complaining, the economy is bleeding, and we go to the polls in these circumstances. I want to believe that somewhere, somehow, there is a dark horse behind the agenda and we will not allow that cause to continue to drag the success of our electoral process.
“By this position, the House of Representatives is now compelled to recommend to Mr Speaker to go ahead and initiate the necessary instrumentality of the law to compel the governor of the Central Bank to appear before this constitutional committee,” he said.
Another lawmaker, Hon. Obinna Chidoka. lamented the banks were unprepared, and are wary of divulging information, being scared of their licences revoked by the CBN.
He said, “You came here not prepared. I see a disconnect. You are very wary of your license and can’t really talk.”
Another lawmaker, Hon. Ahmed Jaha, argued that “in the law, no time was given for the bank to stop collecting the old notes.”
“For every money printed, there is a value for it. If at the end of January, the new notes are not accepted, don’t you think it’s an economic sabotage? Operators should let us know,” another lawmaker, Hon. Nkem Abonta queried.
