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Margaret Ekpo,Funmilayo Ransome Kuti and Gambo Sawaba |
Following the announcement by the Central Bank of Nigeria (CBN) on the introduction of a N5000 note
into the system, some experts have expressed mixed reactions to the
plan. President Jonathan has commended it while ANPP party condemned it.
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 re-denominate 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.”