Since the new naira notes were not readily available, the House of Representatives requested yesterday that the Central Bank of Nigeria (CBN) extend the expiration date for the old naira notes by at least six months.
In addition, it demanded that the country’s bank CEOs appear before the House-appointed ad hoc committee investigating the reasons for the scarcity of the new notes.
In accordance with the CBN Act, both the old and new notes can be used until June, as stated by the lower legislative chamber.
After receiving a briefing from the ad hoc committee, which was led by House leader Ado Doguwa, to resolve issues regarding the new naira notes, Speaker Femi Gbajabiamila of the House of Representatives made the call, stating that the extension had become necessary due to the scarcity of the new notes in commercial banks.
He stated, “Subject to the President’s approval, the House of Representatives recognizes the authority of the Central Bank of Nigeria, or CBN, to determine the country’s legal tender and to recall currency with reasonable notice.”
‘The House is also aware that the Central Bank of Nigeria (CBN) Act, Section 20(3), requires the CBN to redeem the recalled currency’s face value upon demand, even after the notice of recall has expired.
“This House will ensure that this provision of the law is fully honored, despite the deadline imposed by the Central Bank of Nigeria, CBN.
“Permit me to repeat that. Section 20 of the Central Bank Act grants the Central Bank the authority to alter the legal tender. But it also says that this changed naira note will no longer be legal tender after the expiration date.
However, it states that any old notes presented to banks will be redeemed by the banks two, three, or five months later, even in June. The public and the Central Bank must be informed of that. It was not created. It is a legal provision.”