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.”
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Ok we don hear
ReplyDeletewell done,it is another way to cashless environment but my fair is that would it not further devalue our Nair a
Deleteayoola
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ReplyDeleteE sha want to spoil naira by all means. Very soon even N50 wouldn't be able to buy anything.
ReplyDeleteI thought CBN is talking abt a cashless policy?? so y do dey nid to introduce a higher denomination? dis guys are jst luking for ways to steal more moni, bunch of corrupt idiots.
ReplyDeleteIf this is true, then I seriously believe that the CBN is confused. CBN, who is still test running the cashless policy, now wants to introduce another policy that will make the same cashless policy impracticable. This new policy may adversely affect our economy. I wonder what Mr. President is waiting for before he calls the CBN management to order. Is he waiting for the National Assembly to serve him impeachment notice first before he acts? God help us. FRANK
ReplyDeleteThis again is another show of incompetence by a government body. On one hand, they are saying that they want a cashless banking system which would eliminate the risk associated with carrying large volumes of cash arround. It would also make it more difficult for political and other thieves to steal money because all their transactions can be monitored more easily.
ReplyDeleteI strongly believe that the politicians are behind this move to get larger denominations and ofcourse there is also the kick backs to be made from the printing contract.
I wonder were Nigeria is going to becasue this new policy if implemented, would completely erode the purchasing power of the notes that are to be changed to coins.
May God help us all.
Does the government official at d helms of affairs do read people's comment, why are the policies, principles, plans, and programmed are always contradicting themselves. Here in UK the highest denomination is £50 and is very very very hard to come by in d bank except on request. They still have the lowest of their currency 1 penny in circulation, why are our policy makers so low in common senses, they want to turn N50, N20, N10, and N5 into coins. This is madness of the highest order. Will such coins then be handy? The cheapest commodity will now be N100 note, pls instead of making this paper note coins re-introduce 1Kobo, 50Kobo, N1 and N2. Pls for God's sake don't spoil our currency the more.
ReplyDeleteYou are try to move to cashless economy at the same time still encourage large cash movement, there is no sense in this at all.
Nigerian people don't allow this looters to create another medium of storing our money in the underground vaults in their several building around Nigeria as their activities of money laundering abroad are largely been exposed, this is another way of stealing more money ooooooooooo. Pls we should not buy into their policy.
Thank u fellow Nigerians, may Gid deliver us from our Pharaoh-like leadership. Amen
Balderdash!
ReplyDeleteThis is inflation that is coming to this country, Nigeria. Please God put a stop to this nonsense.
ReplyDeleteI do not uunderstand what is wrong with Sanusi? What kind of new policy is this? Why print new Naira denominations when we have spent billions to embark on a cashless economy. And the idea of coverting N50 and other smaller currencies to coins is totally absurd. All it will lead to is that the minimum prices of godds and services will now cost N100. This will lead to hyper inflation. Please someone should call our CBN Governor to order. He is destroying the economy.
ReplyDeleteA country like ours (Nigeria) that is struggling to be on his feet dose not need any new policy introduced. rather emphasy should be on the already policy they are in. this guys are indid idiots to think in this direction for a country struggling to stop stucking breast milk. what a shame to this fools....
ReplyDeletethey are all criminal, they wat they are trying for dis country
ReplyDeleteWill sanusi and other top government officials use the 50,20,10 naira coins? I just can not understand why we have leaders who have such low thinking abilities, low foresight in fact everything low.They are simply wicked though am not surprise. Just another of their hideous acts
ReplyDeleteIt is obvious that Sanusi has lost touch with reality.
ReplyDeleteI know their mission, is to kill and destroy Nigeria. May God not let them live to carry out these their wicked and obnoxious policies. Amen
ReplyDeleteDevaluation of our currency at dis point in time wil create mor problems dan d CBN try 2 solve. Let CBN weigh policies vry well b4 implementationz!!
ReplyDeleteThis country is so Fucked!
ReplyDeleteThese new polices usually lead us (Nigeria) to more harm than good...
ReplyDeleteAm not in support of this, this will bring more shame to naira than value. if they want to really work on creating more value to this currency, let them bring back our Kobos (5 kobo, 10 Kobo etc.), Pound Sterling exists to d last penny (1penny) & this is part of its value factor. Pls tell them to use their brain & I believe all of them have one.
ReplyDeleteSanusi should be taken to a psychatric hospital for cross examination. He called himself professor yet with low thinking ability. God wil surely judge him if he suffers the poor masses.
ReplyDeleteI don't blame them headless and prodigal leaders.Instead of devaluing the naira to stabilize the economy they are now looking for a way to siphoning our currency since,the western world has banned them from using their country as a means.So they must seek a way out of their predicament.
ReplyDeleteThat suggestion is rubbish it doesn't make sense at all.
ReplyDeleteSanusi is not a professor and I more surprised by people's reaction to this news than to the news itself. What do you expect of someone that has a BSc and then diploma in islamic banking from Sudan? We prefer federal character to intelligence. Watch out, despite killing our economy with all his anti-economic policies, some people will demand that he serve a second term just like Soludo did. But we all know that Eagle and vulture are not the same even though they are birds.
ReplyDeleteSanusi seems to have lost his senses. This policy is hyper-nonsensical.....He wants to look for a smarter way of embezzling our money by making N100 the lowest currency....hmmmmm God, where is thy face? Hear our cry in Nigeria these leaders are killing our economy.
ReplyDeletePoor man is in trouble! What N50 note can purchase, N50 coin can‘t. One of the economy implication is that there‘s going to be an increase in price of goods. Producer and sellers will hide under the pretence of “i can‘t carry load(coin)“. Is there a way we can stop them? A day shall come when the lord will hear the cry of the poor and make their words meaningful and acceptable in the sight of the rich man.
ReplyDeleteWhy are we facing all these sufering from our leaders. God is all Hearer and all knower.
ReplyDeleteHi guys!
ReplyDeleteAm really impressed to see fellow Nigerian voice out their minds. But all is not done yet. My advise to you folks is to understand that though they might have the power today, we as the masses still have the power on the day of rekonning which is Election.
I know some of us do not believe in voting because we feel it will get rigged- but am really amazed that we forget so easily. Even in the hands of the Evil Genius as he was called, the masses came together and their voice was heard through their votes. Abiola emerged the winner! With all his scheming he could not rig the election. He had to resort to blatant force. Anyway, my point is we can do this again. Many of us saw the right candidates during election but some through FOOLISHNESS (sorry for that choice of word) begin to apply sentiments. Some says his name his Goodluck so he will bring luck, and several bunch of rubbish which you can't even believe was said by several educated folks. Ribadu for instance was there but the youths never encouraged him. The likes of Pat Utomi, Bakares etc were there but it was several rubbish that people said about them instead of voting people with vision and policy. So why are we crying to God now? If he listen to our cries I will believe its just by mercy.
God will not come down and save us from this bunch of rogues, you and I have to do it so start now.
And for those calling Sanusi a Prof - it was on this same site I read a news of him being sued for Plagiarism. So what do you expect.
My advise - when election time comes do not seat at home taking the day as another public holiday. Go out and vote and that is the answer to your prayers for God's help. Remmeber: God will work WITH you and not FOR you. And when you choose candidates, do so with sense. Research their backgrounds and resumes to see what they have to offer. This is the simple solution to our predicament.
Thank you
Adeyinka Fadehan
I feel bemused at times by some of d stories I read. Is aving 5000 nd 2000 naira notes part of d cashless society syndrome? Is dat what we need at ds tym? How many coins av survived till date? Why did d coins dsappear? Are ds leaders of ours from ds part of d world!!!
ReplyDeleteSO HOW WE GO DEY ENTER BUS O? WIA CONDUCTOR WON SEE CHANGE FOR 5,000 NAIRA FOR A 100NAIRA TRIP.....WHALA GO DEY OOOOO...LOL
ReplyDeletei can see that sanusi does not have any agender at all. first he brought nylon naira, now he is diminishing other ones to coin. whats wrong with that hausa man
ReplyDeleteOur policy makers are so selfish, they only see things from their own perspective. God will definitely fight for the masses...but the masses should be responsible for themselves and unite. Together we can create our desire Change!
ReplyDeletewith de dig notes it will be easy yo steal billions inside pocket
ReplyDeletea more easy way to transport our stolen money
ReplyDeletePlease I want to asked just 1 question and my question is where are the N1.00, N2.50k and other coins we have before? If the federal government don't know what to do let them just quit that place. to me it is total nonsense. They don't want a common man to buy something with N5.00 again because as soon as they implement this their crazy idea the N50.00 goods will automatically climb to N100.00
ReplyDelete