Nigeria: CBN To Introduce N5000, N2000 Notes; N50, N20, N10 Coins

Nigeria In an attempt to reduce the volume of cash baggage and security exposure in cash transactions, the Central Bank of Nigeria may be contemplating the introduction of new currency denominations of N2,000 and N5,000.

The bank has also made plans to convert N5, N10, N20 and N50 into coins which are all presently notes.

The policy would make it easier to move large quantities of cash around with little exposure to risk, but financial critics have suggested that it would be a contradiction to the CBN policy to migrate to a cashless economy.

Spokesman of the Central Bank Ugochukwu Okorafor, who spoke to LEADERSHIP, however, said he could not confirm that the bank’s governing board was thinking of introducing two new denominations in addition to the existing ones.

Okoraforwho made no outright denial that such a policy was being contemplated, said instead that he had to get further clarification from the bank’s leadership. And as at press time yesterday, the CBN spokesman was unable to reach any of the bank’s directors.

But a source who is a staff member of the bank told LEADERSHIP, under the condition of anonimity that, “The top management of the CBN have decided to introduce currency denominations of N2,000 and N5,000. This is being done in the best interest of the economy.”

The source who could not say when the policy would take effect or when it would be announced to the public said, “All the smaller denominations from the N50 downwards are also to be converted into coins.”

A financial expert and executive chairman of the Society for Analytical Economics, Nigeria, Dr. Godwin Owoh, has said that if the policy is carried out, it would not only lead to inflation but would increase the ability to carry out cash transactions.

He said the activities of the CBN were becoming more commercial in nature, suggesting that this was more of a fiscal policy than a monetary one and that it should be decided by either the minster of finance or the president.
Owoh said, “There has been no official pronouncement from the CBN on this policy but, if it is carried out, it will only give the bank’s management the capacity to award more contracts, making it a purely selfish and commercial endeavor. The CBN has been carrying out commercial activities, which are normal banking operations – they set rules on how to withdraw or not withdraw money.”

He said, “ The CBN has invested a lot into the cashless policy and point of sale terminals will suffer; 100,000 units of hardware for e- transactions have been installed in different places.

“The process of printing money is clearly a fiscal issue. Embarking on this policy would indicate a lack of harmony between the fiscal and monetary policies.”

Culled from Leadership News

  1. Mustapha seden Reply

    I think the idea is very good if only we can manage it very wel. Tnx to the federal Government.

  2. Muhammad Adamu Tsafe Reply

    This is a very good idea because with the existance of coins, small businesses can easily run smothly more especially in giving change. Thank sanusi lamido thank CBN

  3. chinwe Reply

    before u praise him, please try to look back into history to see the “benefits” of such moves. Did it do what you are praising him about? did small businesses run smoothly? think before u speak.

  4. Adam Reply

    This is a bad idea because only the rich people will benefit from that and introduction of 5000and2000 naira note will not add anything to the economic of the country but rather degrade it.

  5. jane Reply

    The idea of introducing N2000 and N5000 notes is not in d interest of d poor masses.One problem we are facing in Nigeria is bad leadership.What of d cashless society policy? Which way Nigerian leaders?

  6. Iliya adamu ogu Reply

    Well the decision is very very bad,becouse it is an attempt to devaluate our currency.if such money will be introduce most esecially the lower denomination i assured u that the currency will b totally lost just the way it happen with our naira and kobo.which it will lead to more corruption and the masses will suffer most.

  7. biodun Reply

    Ȋ̝̊̅ Α̲̅ not in D̶̲̥̅̊ support Ơ̴̴͡f D̶̲̥̅̊ motion,Nigeria currency Ȋ̝̊̅ƨ̣̣̣̇̇̇ already valueless,introduction Ơ̴̴͡f 2000 ãήϑ 5000 can neva help D̶̲̥̅̊ masses only the minority Ȋ̝̊̅.e the elit will only benefit from į̸̸̨ƭ while the majority will not,N5 ãήϑ N10 α̲̅я̩̥̊ε̲̣̣̣̥ almost going †̥ there dead end caused by inflation Ơ̴̴͡f tin.Think B4 U̶̲̥̅̊ do

  8. Kennyfido Reply

    Is d idea best kwn 2 genera public?

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