Ex-President Olusegun Obasanjo is a bad economist, although he is a successful farmer, Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi said yesterday.
Mr Obasanjo had on Thursday said the introduction of the N5000 note would kill production and affect small businesses negatively.
The former president, who disclosed this at a roundtable advocacy forum organised by the Institute of Directors, in Lagos, said the way, Mr Sanusi, was fighting inflation by removing money from circulation was improper.
However, speaking at the sixth annual conference of the Chartered Institute of Bankers of Nigeria, Mr Sanusi said Mr Obasanjo had introduced more high denomination in Nigeria than any other Head of State.
“General Obasanjo did N20; he did N100, N200, N500 and N1000. He has introduced more higher denomination than any Head of States,” Mr Sanusi said.
The CBN governor said that during the period Mr Obasanjo was introducing high denomination inflation in Nigeria was actually low.
“General Obasanjo did N100 in 1999; then he did N200 in 2000; he did N500 I think two years later; and did N1000. In that period, inflation was coming down because it was accompanied by very tight monetary and fiscal policies during his reforms.
“For somebody who have gone through that to come and stand up and say ‘introducing a higher denomination causes inflation’ I don’t know if somebody wrote his speech. I’m trying to see him or if he was misquoted.
“If he actually said that then he must be the single most important determinant of inflation in our history given the number of notes that he introduced,” he said
Mr Sanusi said printing higher denomination without increasing the money supply in the economy will not increase inflation. “This is simple economics,” he said.
He said that the cost of printing and minting all denomination of currency in 2009 was N47 billion and that by 2011 the CBN brought this cost down to N32 billion.
He said that by 2014 the cost would further be reduced to N25 billion thereby saving about 50 percent of the total cost of printing and minting all denomination of currency.
Mr Sanusi said the N5000 note would not cost more than N3 billion to print.
Posted: at 12-09-2012 09:42 AM (11 years ago) | Upcoming
geraldduruike at 12-09-2012 10:03 AM (11 years ago) (m)
Ok Mr Sanusi we heard you well then use this opportunity and reduce the higher denomination to 200naira and supply more cash..Cancel 500 and 1000.Talkless of making thing worst to introduce 5000..You want use to be like OLD GHANA..Teach us as one of Nigeria Leader not we to teach you,While no body knows us,Only that we have Nigeria Passport,That is the only Benefit..Hope this will decrease inflation..If really You are An Economist..Check out other suitable country..Like Singapore and Malaysia..America the Highest denomination is 100 note.Then other higher denomino is not legal tender..Hope you do visit those country as a wise international man of you caliba..Ejoo Ntori Olowuu Help Nigeria..Cancel this 5000naira note,make people no go die for street...
Posted: at 12-09-2012 10:03 AM (11 years ago) | Upcoming
usman212s at 12-09-2012 10:21 AM (11 years ago) (m)
The notion of a criticism sanusi is making of OBJ could equally be well apply to him........ Sanusi just shut that hole in your face you called mouth...
Posted: at 12-09-2012 10:21 AM (11 years ago) | Upcoming
Treasure2 at 12-09-2012 10:33 AM (11 years ago) (f)
Quote from: usman212s on 12-09-2012 10:21 AM
The notion of a criticism sanusi is making of OBJ could equally be well apply to him........ Sanusi just shut that hole in your face you called mouth...
Hissssssssssss
Posted: at 12-09-2012 10:33 AM (11 years ago) | Hero
richi192 at 12-09-2012 10:50 AM (11 years ago) (f)
hmm Obasonjo has said well o because he did the currency that will best suit Poor man, but this 5000 note is just too much becox it will only be beneficial to top politicians not considering the Masses. GEJ pls stand up and do something abot dis, Sanusi an experience President is telling u what to do and u are insulting him
Rachael baby(daughter of holy Ghost) says "Jesus Christ is coming soon"....
Posted: at 12-09-2012 10:50 AM (11 years ago) | Gistmaniac
Why cant Sanusi respect and accept the opinion of the people who reject the introduction of his N5,000.00 notes.? Why does he want to force it on Nigerians even when they dnt want it? Does he have a limitless power? Something has to be done about his behaviour towards the people he is supposed to serve. I don't understand why he is still allowed to be d CBN governor. He shld be sack. Idiot
Posted: at 12-09-2012 11:32 AM (11 years ago) | Hero
geraldduruike
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