Many Nigerians are speaking against the introduction of N5,000 note by the Central Bank of
Nigeria, (CBN) even as the Governor of the apex bank Sanusi Lamido Sanusi explained that
the new bill is introduced to cushion the effect of “inflationary pressures.”
According to him, by next year, all coins will be 50k, N1, N2, N5, N10 and N20 while the banknotes will be N50, N100, N200, N500, N1,000 and N5,000.
However, a cross section of Nigerians who spoke to African Examiner faulted the apex bank
saying the new note will only increase the inflation which Sanusi said he wants to curtail.
Dr Oladele Ishola, a financial expert is surprised that Sanusi is introducing a high
denomination while at the same time drumming support for a cashless economy.
A Nigerian, Adebisi Abiodun in his comment wrote: “The following are highly likely: This will now
give politicians opportunity to steal easily and pack Nigeria’s little balance that is left away.
More funds will leave the banking sector as people can easily store away funds in higher
currency now. For example, one can easily package N5m in the same space for N1m of the
present moment.
“Many job loss is imminent in the banking sector as most customers can now store their fund
with the higher denominations. Robbery will likely increase as there is higher probability of
making big breaks if those with high currency storage are robbed giving them encouragement
to do more.
“The fight against money laundering will be virtually lost as it is now easier to transfer fund via
unconventional ways out of the country. People will now be smuggling Naira out to other
countries for exchange to those visiting Nigeria. Ghana made their economy stronger by
bringing down their currency denominations by removing 4 Zeros but we are adding more to
our own Zeros. Too bad Nija. By the time Sanusi finish with the economy, Nigeria will have
nothing left again.
“All this quota system CBN Governor will speed up the burial of Nigeria economy. Weep now
my country because the end is now closer than expected. The best anyone can do to help the
economy is to remove the high bills if possible from N100 out of circulation but alas, our own
economic “native” doctor has turned the whole situation upside down. Too bad Nigeria.”
Another commentator who simply drops his name as Fazona wrote: “One of the worst
decisions ever made by any human being much less the Governor of a Nation’s Central Bank.
This is the height of huge economic Ignorance.
“There is little or no money in the real economy of Nigeria, except within the circle of the Rulers
in Abuja and the State Capitals, and their Sycophants. In other words, the masses have no
money to buy available yams, garri, pepper, okra. akara, shoes and clothes in the real
economy of Nigeria. This is why there is massive poverty and hunger all over Nigeria. How
then, will insufficient or no money cause demand-pull inflationary pressures? Impossible and
simply unbelievable. This is economics 101 taught in High Schools in the US and most
developed countries.
“So the introduction of higher denomination currencies to cushion non-existent inflationary
pressures, even if there is inflation, the higher denomination currencies will not reduce the
inflation but will simply cause devaluation of the Naira. It will make the Naira more worthless.
“It’s just a pity that President Jonathan cannot surround himself with ministers and advisers
who know what they are doing. Rather, he has surrounded himself with those who are not only
destroying the credibility of his Administration but the economy of Nigeria and hence, tens of
millions of Nigerian lives. It’s a pity. Mr. Sanusi deserves to be fired for such incompetence.”
Sanusi says the new N5, 000 bill will be in circulation next year. He however added “that there
will be no urgent need for exchange of the old for the new bank notes by the general public for
as long as the old banknotes are in circulation, they will remain legal tender.”
Nigeria, (CBN) even as the Governor of the apex bank Sanusi Lamido Sanusi explained that
the new bill is introduced to cushion the effect of “inflationary pressures.”
According to him, by next year, all coins will be 50k, N1, N2, N5, N10 and N20 while the banknotes will be N50, N100, N200, N500, N1,000 and N5,000.
However, a cross section of Nigerians who spoke to African Examiner faulted the apex bank
saying the new note will only increase the inflation which Sanusi said he wants to curtail.
Dr Oladele Ishola, a financial expert is surprised that Sanusi is introducing a high
denomination while at the same time drumming support for a cashless economy.
A Nigerian, Adebisi Abiodun in his comment wrote: “The following are highly likely: This will now
give politicians opportunity to steal easily and pack Nigeria’s little balance that is left away.
More funds will leave the banking sector as people can easily store away funds in higher
currency now. For example, one can easily package N5m in the same space for N1m of the
present moment.
“Many job loss is imminent in the banking sector as most customers can now store their fund
with the higher denominations. Robbery will likely increase as there is higher probability of
making big breaks if those with high currency storage are robbed giving them encouragement
to do more.
“The fight against money laundering will be virtually lost as it is now easier to transfer fund via
unconventional ways out of the country. People will now be smuggling Naira out to other
countries for exchange to those visiting Nigeria. Ghana made their economy stronger by
bringing down their currency denominations by removing 4 Zeros but we are adding more to
our own Zeros. Too bad Nija. By the time Sanusi finish with the economy, Nigeria will have
nothing left again.
“All this quota system CBN Governor will speed up the burial of Nigeria economy. Weep now
my country because the end is now closer than expected. The best anyone can do to help the
economy is to remove the high bills if possible from N100 out of circulation but alas, our own
economic “native” doctor has turned the whole situation upside down. Too bad Nigeria.”
Another commentator who simply drops his name as Fazona wrote: “One of the worst
decisions ever made by any human being much less the Governor of a Nation’s Central Bank.
This is the height of huge economic Ignorance.
“There is little or no money in the real economy of Nigeria, except within the circle of the Rulers
in Abuja and the State Capitals, and their Sycophants. In other words, the masses have no
money to buy available yams, garri, pepper, okra. akara, shoes and clothes in the real
economy of Nigeria. This is why there is massive poverty and hunger all over Nigeria. How
then, will insufficient or no money cause demand-pull inflationary pressures? Impossible and
simply unbelievable. This is economics 101 taught in High Schools in the US and most
developed countries.
“So the introduction of higher denomination currencies to cushion non-existent inflationary
pressures, even if there is inflation, the higher denomination currencies will not reduce the
inflation but will simply cause devaluation of the Naira. It will make the Naira more worthless.
“It’s just a pity that President Jonathan cannot surround himself with ministers and advisers
who know what they are doing. Rather, he has surrounded himself with those who are not only
destroying the credibility of his Administration but the economy of Nigeria and hence, tens of
millions of Nigerian lives. It’s a pity. Mr. Sanusi deserves to be fired for such incompetence.”
Sanusi says the new N5, 000 bill will be in circulation next year. He however added “that there
will be no urgent need for exchange of the old for the new bank notes by the general public for
as long as the old banknotes are in circulation, they will remain legal tender.”
