NAN recalls that the CBN on Thursday said that it would introduce N5,000 note and coin existing N5, N10 and N20 notes in 2013, saying the introduction of the higher bill would complement the apex bank’s cashless policy as it would substantially reduce the volume of currency in circulation.
Meanwhile, experts have expressed their views in separate interviews with the News Agency of Nigeria (NAN) in Lagos on Friday.
Dr. Godwin Inedia, a former Economics Lecturer in Ambrose Alli University, said that the proposed introduction of N5000 could lead to hyper inflation.
Inedia said that in developed countries such as Britain and the U.S,, the governments had restricted the circulation of prime currencies in the system.
According to him, the Nigerian economy has not developed to a stage where such a high denomination could be used.
“The economy is not matured enough to start thinking of using N5000 note, I don’t see the rationale behind it,” he said.
Inedia also said that coining the N10, N20, and N50 notes and the new N5000 would cost the apex bank huge amount of money which could be used for more productive uses.
An economist, Mr Bismarck Rewane, said that the introduction of the note would not cause inflation as some expert had said.
He, however, said that there was no longer any need to redenominate the naira in view of the cash-less policy of the apex bank.
Rewane, also the Chief Executive Officer of Financial Derivatives, said that there was no need for high denomination notes with the cash-less policy, but added that it would not negate the cash-less policy.
He said that the introduction of the N5,000 note had been in process for about four years before the cashless scheme came up.
“The fact is that the plan was conceptualised about four years ago before the introduction of the cash-less policy.
“Now, with the cash-less policy, we don’t need the high denomination notes as everybody is going cash-less,” he added.
Mr Olumide Adegoke, General Manager, Standard Alliance Insurance, said that the note could encourage corruption as it would be easy to carry huge sums within the system.
He said that the CBN should also be looking at ways of checking inflation.
The Special Adviser to the president on National Assembly Matters, Joy Emordi, speaking in Abuja, said remembering these women would remind Nigerians, especially the elites, that they will be remembered for their roles in times of national challenges either as heroes or as villains.
Mrs Emordi said the representation of the National Assembly that is to be on the new currency shows that President Jonathan appreciates the efforts of the parliament in deepening the country’s democracy and development.
New N5000 will increase our suffering – ANPP
In a press statement signed by its National Publicity Secretary, Emma Eneukwu tha ANPP said it “has received with interest the announcement by the Central Bank of Nigeria (CBN) of its plans to add a higher currency denomination of N5, 000 to the country’s list of notes by early next year.
“The apex bank also informed the nation of its plans to redesign the N50, N100, N200, N500 and N1, 000 notes to improve their security features while the N5, N10 and N20 polymer notes are to be converted to coins. Our great party believes this is another clear path to inflation and resultant suffering on the part of the hapless citizens of this great nation.
“It is an established fact that the Nigerian populace is averse to the use of coins, and therefore the decision by the Federal Government to convert some lower denomination notes to coins smells of a premeditated agenda to further mop up cash from the nation space and whip the Nigerian people in the process, just as it had done through the increase in the pump price of fuel and hike in electricity tariff. In fact, one does not need an economics professor to know that this move will eventually cripple the value of the naira; countries like Japan, Germany and Singapore do not have strong currencies because they printed higher denominations.
“Moreover, going cashless has nothing to do with printing N5, 000, but everything to do with introducing valid strategies for redirecting the nation’s commercial transactions into the virtual space. Right now, what the CBN and the Federal Government should be engaged in is establishing a clear and comprehensive electronic fraud management framework, as well as delineating of responsibility among key stakeholders, and advocating enabling laws that will inspire confidence in the country’s e-payment network, both locally and internationally; not to saddle the helpless masses with more burdens,” the statement reads.
The party advised the Federal Government to “call the CBN to order, and mandate them to streamline the resources that would be wasted in this ill-timed and unreasonable exercise into more people-friendly fiscal projects with the aim of reviving the fast-waning confidence of the masses in the government.
“We believe that this lame project, instead of curing the economic problems of the nation, will only succeed in deepening the already egregious chasm between the haves and the have-nots of this well-endowed country.”