Under the plan expected to take effect early next year, according to the Governor of CBN, Mallam Sanusi Lamido Sanusi, this would lead to the introduction of N5,000 (Five thousand Naira) as the highest Naira denomination, while existing N5,000, N200, N100 and N50 notes would be redesigned. Should the apex bank have its way, the new currency denominations will have the portraits of three prominent women who reportedly help to fight for the nation’s independence.
These women were Mrs Margaret Ekpo, Mrs Funmilayo Ransome-Kuti and Hajiya Gambo Sawaba, while the N5,000 bill would have the picture of the National Assembly, Sanusi while unveiling the new structure in Abuja on August 23, called the exercise a “Project Cure” that would allow the apex bank to convert current lower denominations of N5, N10, and N20, respectively into coins, which he said would increase the currency structure 11 to 12. Sanusi had assured that the new denominations would be a gradual process to be used simultaneously with the existing series until they are completely phased out.
He also hinted that the exercise was aimed at “upgrading the design of the entire range of the nation’s currency denomination in order to enhance their quality and integrity. The exercise is projected to gulp a hefty N40.3 billion. CBN has stoutly defended the proposal and claimed that the N5,000 was designed to serve high net-worked individuals in the society, and not for all Nigerians.
The proposal was reportedly approved by the Board of the apex bank on November 28, 2011 while President Goodluck Jonathan is said to have endorsed the proposal on December 19, last year. But most Nigerians have stridently opposed the plan.
The Senate has also kicked against the proposal and asked the CBN to stop action on the plan. As so does this newspaper. We find no redeeming grace for this exercise, at least not now. It is a wasteful venture that can only serve the vested interest of few in the society. The argument by the CBN that similar plan has been introduced in other economies does not make it desirable in Nigeria at this point in time.
As hard as the CBN is doing to force this proposal through, we have observed with dismay that the CBN under the leadership if Sanusi has overreached itself many times over in most of its macro-economic policies in the last two years at least. The currency review proposal is one that should not be allowed to stand. It is also disheartening to hear the CBN Governor argue, that the exercise was also necessitated to make it easy for foreigners who do business in Nigeria to handle large volume of cash.
That argument is simply puerile. We ask: Is CBN serving the interest of foreigners or that of our nationals? Whatever benefits that may surface in this plan, if allowed to come into fruition, its drawbacks will hurt the economy and the citizens very hard. Clearly, it will encourage the stealing of public funds and money laundering which the present administration has been labouring to fight. In short, the plan if allowed, will facilitate corruption.
We therefore advise the CBN to focus its attention on polices that will spur economic growth and cushion some of the already negative impact that some of its policies have had on the banking sector and the economy at large. The cash-less policy is one of such flip-flop policies that the banking public are yet to fully embrace.
There is no real economic logic to embark on another policy when the ones already in place are not helping the economic and the well-being of the people. It needs re-stating that the present leadership of CBN should exercise extreme caution and carefully think through a policy to avoid disruptions capable of sending the wrong signals to both the domestic sector and to the international community.
The current plan to introduce higher denomination in our currency regime is ill-digest and should be discontinued forthwith. We recall that the process to re-denominate the currency in 2008/2009 under Sanusi predecessor, Prof Charles Soludo failed because it was not well thought through.
Same with the introduction of Islamic Banking. his is the right time for the National Assembly to carry out the much-awaited review of the CBN 2007 Act to align it with the best international banking practices. CBN must stop using its prerogative to harm the economy and cause untold hardship on the people. As so does this newspaper. We find no redeeming grace for this exercise, at least not now. It is a wasteful venture that can only serve the vested interest of few in the society.
The argument by the CBN that similar plan has been introduced in other economies does not make it desirable in Nigeria at this point in time. As hard as the CBN is doing to force this proposal through, we have observed with dismay that the CBN under the leadership if Sanusi has overreached itself many times over in most of its macro-economic policies in the last two years at least. The currency review proposal is one that should not be allowed to stand. It is also disheartening to hear the CBN Governor argue, that the exercise was also necessitated to make it easy for foreigners who do business in Nigeria to handle large volume of cash.
That argument is simply puerile. We ask: Is CBN serving the interest of foreigners or that of our nationals? Whatever benefits that may surface in this plan, if allowed to come into fruition, its drawbacks will hurt the economy and the citizens very hard. Clearly, it will encourage the stealing of public funds and money laundering which the present administration has been labouring to fight. In short, the plan if allowed, will facilitate corruption. The exercise is projected to gulp a hefty N40.3 billion.
CBN has stoutly defended the proposal and claimed that the N5,000 was designed to serve high net-worked individuals in the society, and not for all Nigerians. The proposal was reportedly approved by the Board of the apex bank on November 28, 2011 while President Goodluck Jonathan is said to have endorsed the proposal on December 19, last year. But most Nigerians have stridently opposed the plan.
The Senate has also kicked against the proposal and asked the CBN to stop action on the plan. Clearly, it will encourage the stealing of public funds and money laundering which the present administration has been labouring to fight. In short, the plan if allowed, will facilitate corruption. This is the surface in this plan, if allowed to come into fruition, its drawbacks will hurt the economy and the citizens very hard.
Clearly, it will encourage the stealing of public funds and money laundering which the present administration has been labouring to fight. In short, the plan if allowed, will facilitate corruption.
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