FG bows, suspends N5,000 note issue

Posted by admin CBN (Central Bank of Nigeria), Latest Politics Friday, September 21st, 2012

By Ben Agande
FOLLOWING the outcry from Nigerians over the planned introduction of the N5,000 note, the Federal Government has confirmed it is stepping down the introduction of the note by the Central Bank of Nigeria.

Presidential spokesman, Dr Reuben Abati who confirmed this last night said the move was to allow more enlightenment by the Central Bank of Nigeria.

Dr Abati while responding to inquiries, said “the introduction is being suspended for now to enable the CBN do more enlightenment on the issue. Yes, President Jonathan has directed that the implementation of the new N5,000 note be suspended for now. This is to enable apex bank to do more in terms of enabling Nigerians understand why it proposed it in the first place. So, for now, the full implementation is on hold.”

Only last Tuesday both the Senate and the House of Representatives passed separate resolutions asking President Jonathan to suspend the introduction of N5,000 saying it is anti-people.

Minister of Information, Mr Labaran Maku on Wednesday, however, insisted that there was not going back on the issue.

Speaking in Abuja on Wednesday, the Information Minister said the Central Bank of Nigeria, which is responsible for the planned action should not be crucified as according to him, its head, Mr Sanusi Lamido had not misled the country in any form. He said the CBN boss meant well for the country, citing the action he took few months after mounting the saddle, which he noted had reformed the banking sector today and built customers’ confidence as well as providing efficient service delivery in the banks. “I think the way the Central Bank of Nigeria has been able to manage our economy without borrowing, is quite commendable and should be appreciated”, he insisted.

The minister said no action of the apex bank as regards currency restructuring in Nigeria’s history had come without criticisms, saying at the end of the day, the same people who had stood against it would see reason and begin to applaud the development. “When the N20 note, N500 note and N1000 note were introduced, people said they were not good for our economy but after the whole thing, they began to see reasons”, he noted.

He said the Economic Management Team endorsed the restructuring bid after the CBN boss was able to convince the team with his explanations on what the country stands to gain in carrying out the action, and urged every other citizen to do same. “I think we should allow the Central Bank of Nigeria to provide leadership, give us what they are to do. It is not a matter of opinion poll but it is a matter that the experts know what they are doing. See the way he (Sanusi) took us through the period of financial meltdown, we were able to survive the situation without borrowing. The Central Bank has exuded a lot of confidence that we should give them support”, he charged.

However, there were insinuations that President Goodluck Jonathan may agree to reverse his administration’s plan to introduce the 5000 naira note. The President was said to have met with the leadership of the National Assembly hours after the stormy sessions of the Assembly on Tuesday and assured that any “approval given in this regards can be reversed since it is the wish of the people”. It is unclear whether the president has issued a directive to that effect.

-Vanguardwp_posts