Senate asks CBN to put N5000 note on hold

The Senate Committee on Banking and Finance has directed the Central Bank of Nigeria (CBN) to discontinue the planned introduction of the N5000 note pending the approval of the National Assembly.
The committee warned on Monday the decision may hurt the economy if pursued.
The CBN decision, announced on Thursday, has triggered reactions with many criticising the planned launch. Experts have said the measure will add no value to the economy.
Under the currency restructuring, N5000 will become Nigeria’s highest note while 20, 10, and 5 naira notes will be converted to coins. The remaining denominations are to be redesigned, the bank said.
At a media briefing on Monday, the committee chairman, Bassey Otu (Cross Rivers, South), said the Senate was not informed of the decision and no meetings have been held since its announcement.
“This type of action is only taken where there is a major crisis and the CBN must be very careful in order not to send a wrong signal or message to households, domestic sector and even the external ones that the Nigerian currency is valueless, which I believe it is definitely not; and that for every unit of value they need to carry a large quantity of cash,” the lawmaker said.

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