Senate summons CBN over cashless policy, N5000 note

The House of Representatives Committee on Banking and Currency says it will invite the Central Bank of Nigeria (CBN) to clarify its position on cashless policy.

Rep. Jones Onyereri (PDP– Imo), the Chairman of the committee, made this known at a press briefing in Abuja on Wednesday, said the bank would also clarify the issue on the planned introduction of N5, 000 notes in the country.

"The House Committee will invite the management of the CBN in an effort for the committee to know whether the bank is still pursuing the cashless policy,

"And if it is how this higher currency note complements the cashless policy or if it contradicts the cashless policy, what are the next steps.

"We believe that Nigerians deserve to know whether there is a short, mid-term and long-term strategy that will bring any benefits to the system as a result of this introduction.

"The intervention of the house is to ensure that due process is followed and the rule of law adhered to.

"We assure you that we will also be mindful of the effect of this or any other banking policy on the ordinary citizens," he said.

Onyereri enumerated factors that would ‘’be key to our consideration" including cost of implementing the policy to government, the inflationary trend, devaluation implication and cashless policy derivative.

He said that the committee had not received any information from the CBN on its plan to introduce N5, 000 notes in the economy.

"Whereas we fully respect the separation of powers enshrined in the constitution and the CBN’s autonomy as provided by the Central Bank Act 2007 as amended as well as the Banking and Other Financial Institutions Act.

"We have a responsibility to the Nigerian people to engage the executive on issues that may have a far reaching effect on the national economy and affect the day to day lives of the ordinary Nigerian."

He said the house, which had oversight responsibility over the banking industry, would set up the processes to immediately address the matter.

"In doing so, we will rely strictly on the provisions of the Constitution of the Federal Republic of Nigeria,

"The Central Bank of Nigeria Act of 2007 as amended, the Banking and Other Financial Institution Act as well as other requisite legal and regulatory instruments."

He said the committee on banking and currency had been briefed "extensively on the cashless and wireless payment system policy of the CBN, which we understand is designed to reduce the actual cash in circulation."

CBN had in 2011 introduced the cashless policy and recently announced plans to introduce N5, 000 notes into the Nigeria economy.

NAN