Nigeria: Representatives Demand CBN Removal Of Surcharge On Commercial Banks

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National Assembly Plans Inclusion Of Environment In Concurrent Legislative List
National Assembly Plans Inclusion Of Environment In Concurrent Legislative List

Nigeria: Representatives Demand CBN Removal Of Surcharge On Commercial Banks.

The House of Representatives Demand CBN Removal Of Surcharge On Commercial Banks.

Yesterday The House of Representatives asked the CBN (Central Bank Of Nigeria) to immediately remove the surcharge placed on commercial banks by the apex bank on destruction of old mutilated naira notes in the country.

The lawmakers also directed that the CBN as a matter of statutory responsibility withdraw old and mutilated notes from circulation and re-issue new ones.

The members’ resolutions followed the consideration and adoption of a motion by Sergius Ogun (PDP, Edo), entitled, “call for removal of surcharge by the Central Bank of Nigeria on mutilated notes,” which was unanimously supported at plenary.

Leading debate on the motion, Ogun cited Section 20 of the CBN Act of 2007, which he said provided that “the currency notes and coins issued by the CBN shall be the approved medium of exchange, and as a result, should be accepted for all transactions in Nigeria.”

He lamented the action of the apex bank, which either refused to accept worn out notes from commercial banks, or expects them to pay fees for their replacement.

Ogun said in the past, “such notes were replaced by commercial banks, but now, the banks routinely reject torn, defaced and mutilated Notes which customers bring for deposits.” He further argued that despite the regulatory position of the CBN, it has consistently rejected the notes. He worried that the continued circulation of worn out, dirty and mutilated Notes called for concern, thereby heightening the need for close investigation and constant monitoring of the process of destruction of the naira notes.

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The motion was passed and referred to the House Committee on Banking and Currency to liaise with the CBN to harness the modalities for handling, returning and destroying damaged and mutilated Notes and report back within eight weeks for further legislative action.

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