sessions yesterday and kept on the front burner some issue, which have
not ceased raging in the polity.
These were the full implementation of the 2012 budget, the status of
the Director General of Security and Exchange Commission (SEC),
Arunmah Oteh and the planned introduction of N5,000 denomination into
circulation by the Governor of the Central Bank of Nigeria (CBN),
Sanusi Lamido Sanusi.
The Senate, which held a marathon session behind closed-doors,
strategised on the way out of the parlous economy just as the chamber
rose in unison asking President Goodluck Jonathan to stay action on
the introduction of the N5,000 note.
On its part, the House of Representatives, which returned from its
eight-week recess yesterday, focused on the same issues of budget
implementation, Oteh and N5,000 note.
At the commencement of business on the first legislative day of the
first session yesterday, Senate President David Mark called for an
executive session during which he drew the attention of the chamber to
the plan by the CBN to introduce the N5,000 note, huge debts owed
contractors and amendment of the 1999 Constitution.
The senators also discussed the paucity of funds, which is delaying
the release of some of their benefits and the 2013 budget. On the 2013
budget, the lawmakers stressed the need for the executive arm of
government to forward it on time, this month, so that legislative work
on it could be concluded before the National Assembly goes for
Christmas break in December.
To this end, it was agreed that the appropriation committee and allied
committees such as finance, banking and currency and economic planning
should put heads together to take a look at the medium-term plan
submitted with the 2013 budget with a view to doing some preliminary
work on key economic indicators.
It was at this point that the chamber resolved to take in plenary a
motion on the N5,000 note. The senators were asked to exercise
patience over their allowances as necessary steps were being taken to
address the matter as urgently as possible.
During the plenary, Senator Ita Enag (Akwa Ibom North East) drew the
attention of the chamber to the plan by the CBN to introduce N5,000
note as a legal tender and the re-denomination of 50k, N1, N2, N5, N10
and N20. He argued that the "convenience of carrying large amount of
money by way of large denomination now being proposed does not arise
since large volume transaction under the Money Laundering Act are to
be conducted cash-lessly through bank accounts of the transacting
parties.''
He expressed concern that the policy would create multiple economic
problems including inflation, corruption and security challenges and
called on the chamber to take action and save the country.
The following spoke in favour of the motion: Deputy Senate President
Ike Ekweremadu, Victor Ndoma-Egba, Olubunmi Adetunbi, Ahmed Mekafi,
Abdul Ningi, Attai Idoko Ali, Smart Adeyemi and Isa Galadu.
Before putting the question, which was unanimously endorsed, the
President of the Senate, David Mark, remarked: "Let me also quickly
join that I also heard it from the news the way you heard it. I was
not briefed. The only briefing I had about this issue was in the
national dailies. The important thing is that if Nigerians say they
don't 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 N5,000 note at the moment
far outweigh not introducing it and on balance, we should not go for
it."
At its meeting yesterday, the House of Representatives said it would
soon suspend plenary session to allow its committees begin physical
inspection of projects provided for in the 2012 budget to determine
the level of execution of those projects.
Reading a welcome address to his colleagues, Speaker Aminu Tambuwal
made it clear that the House would not abandon its responsibilities of
ensuring that the people got proper benefit from government.
The House urged President Goodluck Jonathan to implement its
resolution on the investigation into the near-collapse of the nation's
capital market, particularly aspects of the resolution, which
requested the sacking of Oteh for being unqualified by law to serve as
the boss of the SEC.
In adopting the motion on the matter brought by Ossai Nicholas Ossai,
the chamber presided over by the Deputy Speaker, Emeka Ihedioha, also
threatened that if within 14 days the president failed to comply with
the resolution, it would henceforth cease to accord any recognition or
deal with Oteh as director-general of SEC.
Ossai had in the motion titled "Need for Mr. President to enforce the
resolution of the House of Representatives on the investigation into
the near collapse of the Capital Market," noted with dismay that the
House's resolution was conveyed to the Executive Arm of the Federal
Government on 30 July, 2012 by the Clerk of the National Assembly but
in a flagrant contempt of the Parliament, the President recalled Oteh
from suspension immediately the report of the ad-hoc panel which
indicted her was made public.
"The President recalled Arunmah Oteh from suspension immediately the
report of the ad-hoc Committee which indicted her was made public, in
flagrant contempt of the House of Representatives and the feelings of
the Nigerian people and investors who lost money in the Capital
Market," he reminded them.
He said amongst the issues in the resolution was the request that the
president terminate the appointment of Oteh for "being unqualified by
law to serve as the DG of SEC; for incompetence and inability to
manage the commission and regulatory failures which may lead to the
collapse of the capital market, if unchecked."
He said even protest by staff of SEC against the recall of Oteh could
not deter the president from going ahead with his decision expressing
further concern that " the president has repeatedly refused to
implement important resolutions of the House and treat with contempt,
important House resolutions that relate to the economic well-being,
social harmony and political stability of Nigeria."
The motion was unanimously adopted and the House committee on
legislative compliance was directed to follow up with the resolution
and brief the House within 14 days on the level of compliance.
On the N5,000 note policy, the House of Representatives asked the apex
bank governor to suspend the planned introduction and all the
processes pending the outcome of its investigation into the matter.
Consequently, the House in a resolution on a motion sponsored by
Chairman of the Committee on Rules and Business, Albert Sam-Tsokwa and
20 others, directed its committee on Banking and Currency to
investigate the planned restructuring and report back in four weeks.
The Committee on Banking has been further directed to commence urgent
process of amending the CBN Act with a view to making it mandatory for
the National Assembly to have input into the introduction and or
restructuring of the nation's currency.
Sam-Tsokwa, while moving the motion on behalf of his colleagues argued
that the CBN Governor, Sanusi's recalcitrant position on the planned
restructuring was tantamount to the use of absolute power, and a
policy somersault against its planned cashless economy.
According to the lawmaker, the developed economies had maintained
moderate value currency denominations for a long time, as he cited the
United States' withdrawal of $500, $1,000 and $5,000 bills from
circulation based on their negative impact on the nation's economy,
after their experiment.
Sam-Tsokwa said he was concerned with "views expressed by some
economists and other professionals that the policy will cause hyper
inflation, reduce purchasing power, currency devaluation and widen the
gap between the rich and the poor," and pointed out that the policy
was "inconsistent with international best practices."
Contributing to the debate, Chairman of the Committee on Banking and
Currency, Jones Onyereri disclosed that he was taken aback by the
information on the planned restructuring, adding that his committee
and its counterpart in the Senate were never engaged.
He said as far as he was concerned, the issue still remained a mere
proposal by the CBN, on which his committee and that of the Senate
were yet to be fully briefed.
Also in his submissions, Minority Leader of the House, Femi
Gbajabiamila, argued that legally speaking, the CBN had been given
unlimited powers, unlike in America where the Currency Act clearly
stated the denominations to be in circulation. He however faulted the
approval of the policy by the Economic Management Team (EMT), which
was not recognised by any law, as against the constitutionally
recognised National Economic Council (NEC).
He said Jonathan should summon an urgent meeting of NEC to debate the
propriety or otherwise of the planned restructuring of the country's
currency.
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