Reps mandate c’ttee, CBN to unravel cartel behind mutilated currency circulation

The House of Representatives on Thursday, directed the Central Bank of Nigeria (CBN) to immediately commence the withdrawal and destruction of mutilated currency notes in circulation and replace same with new notes.

The house also urged the National Orientation Agency (NOA) to carry out a sustained public sensitization and enlightenment programme to educate Nigerians on the need to handle naira notes with care.

These resolutions by the house followed the adoption of the motion sponsored by Rep. Adekola Alexander (PDP/ Ekiti).

Moving the motion, Rep. Alexander said that the alarming rate of mutilated currency notes in circulation has become a national embarrassment, adding that banks are issuing torn, mutilated and unhygienic currency notes through ATM machines and across the counter.

He added that despite the “arrest and subsequent prosecution of the culprits, there is still an existing cartel in both the CBN and commercial bank who make brisk business recycling old naira notes meant for destruction.

“They thereby enrich themselves, acquiring properties through these illegal proceeds by converting the equivalent of the mutilated notes into their accounts and selling printed mint meant for customers to touts and hawkers.

“Section 21 (4) of the CBN Act of 2007, makes it a punishable offence for any person to hawk, sell or trade in naira notes, coins or any other legal tender issued by the apex bank,” he said.

The lawmaker expressed worry that most of the mutilated currency notes in circulation harbour pathogenic micro-organisms hazardous to human health and that infectious disease like diarrhoea, food poisoning and respiratory problems could be spread through these bacteria infected bank notes.

The House consequently, mandated its committee on Banking and Currency to conduct an investigation into the activities of the cartel by beaming its searchlight on the CBN, commercial banks and other allied banks in order to ascertain those involved in the sharp practices of injecting mutilated and defective notes into circulation and report back within six weeks.