The Governor of the Central Bank of Nigeria, Mallam Lamido Sanusi, on Tuesday, described former President Olusegun Obasanjo as “a very bad economist.” but a "good farmer" anyway
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. Click to signup for FREE news updates, latest information and hottest gists everyday
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We "NIGERIANS" say NO to #5000 note.
ReplyDeleteSanusi is the bad economist, you do not just copy every foreign idea you see or hear and try to apply it here in Nigeria.
ReplyDeleteA good economist understands the scale of preference, please tell me with all the things we need in Nigeria, why should we be spending billions on printing new notes.
The people of Nigeria are more important than any crazy economic policy, and the funny thing is that the economy has steadily gotten worse even with all of Sanusi's grandstanding!
Why not fix our roads, fix Benin Ore road, fix our schools and pay our teachers well rather than waste more money printing new notes.
Obj is right, it is you Sanusi that is a good farmer and a poor economist!
CBN has not told us yet how the N5000 note will better the lots of 85% of Nigerians who still live beyond the average
ReplyDeleteOBJ thought he would be able to control GEJ but GEJ proved too much for him. How can a man that introduced all the high denominations come round to say it is bad? OBJ is just looking for relevance after losing control of Aso rock
ReplyDeleteBros Sanuzi, What is your Agenda on this printing of 5000 naira notes. I hope you won't end up going the way your Predecessors Soludo did, After his tenure he went straight for Governorship Post. If am right you are planing to use the proceeds of this money to purse your political ambition.
ReplyDeleteBros, God go punish you if you want to put poor Nigerians through Inflation and hardship.
Enough of all these jambory/experimentation of N5,000 notes, Nigerians need more than that we are suffering, we are jobless, no roads, why not direct these same money for printing to solve these problem. OBJ is a Very Good Farmer and Economist also. Lets build Nigeria together.
ReplyDeleteSanusi, Sanusi, Sanusi, how many times did i called you? you are putting hardship on the less privilege stop all this your unnecessary argument, Obj is saying the truth. it is you sanusi that is a bad economist, do something that people will pray for you not cursed you. A word is enough for the wise.
ReplyDeleteMallam u r bad economist not obj. Why do u conspire wit those evil cabal to put poor masses in endless surferness. We see u having good intention for this nation not knowing that it is bad one. Plz mallam have a rethink for the betterment of this nation.
ReplyDeleteOBJ had his own falls bcos he was once a player but on this issue Sanusi is either playing dumb or he is just a thief like others. Of what advantage is the #5000 note to us now when we av more pressing issues that can directly affect the lives of Nigerians to be solved. All these our elites, why are the so self centered? Why are they doing things for themselves instead of doing it for Nigerians! Na wa o!
ReplyDeleteAre you people daft? It's lack of understanding of basic economics and arithmetic that is causing you to say this. He said with the introduction of the #5000 note, the total cost of printing currencies will reduce to about #25bn by 2014.He is not changing the money supply but the STRUCTURE of our currency.Therefore, inflation will not be affected as we don't have more money chasing fewer goods since the money SUPPLY is still the same. Instead, we will have cost savings as we would need to print only one #5000 note instead of five #1000 notes for instance. The cost of printing the notes is a cost we would bear whether or not we introduce #5000 note. Notice that he is not stopping the use of currencies still in circulation. Rather, as old currencies are due for destruction and destroyed, the new currencies will be printed to replace them. So this is a gradual phase out of the currency. SIMPLE!
ReplyDeleteI keep wondering what this Sanusi of a man is till doing in CBN.
ReplyDeletei will like him to answer this questions if he claim he knows what he is doing:
1. What is the economic effect of a State having large quantity of money in curculation?
2.Why is he introducing a single currence of N5,000 when He was the person preaching cashless Nigeria.
I can see the spirit of confusion here
5000
ReplyDeleteThere is a whole lot of ignorance here. Most of the posts express disagreement with the policy but do not giv cogent reasons for for their arguements. Introduction of d 5000 note reinforces d cashless policy. It reduces the amt of cash because instead of holding five 1000 notes, for instance, u only need one 5000 naira note. Simple. It naturally translates to mean that fewer notes could be printed for the same amount of money which naturally saves cost of production. I think it's a straight forward explanation.
ReplyDeletePeople may argue about the desirability of this policy at the moment, and they have every right to question!! But you need to put up informed arguements that will enrich d conversation ...
@Anonymous 3:21pm, i don't see how this reinforces the cashless policy. Yes, there will be fewer notes, but if we use that logic, then there should be a 10,000 or 20,000 note, to stop people from carrying 10 or 20 N1000s around. My problem with the N5000 is that there is no need for it since we are moving over to a cashless society. If you can carry all the money you want in a bank card, why does there need to be a higher denomination? If most people use the cashless method, then automatically the government will print fewer notes!
ReplyDeleteBesides, I just feel Sanusi is not very smart, I gave up on his issue after he stopped ATMs from functioning everywhere but in banks, thus defeating the purpose of an ATM! If he's not smart enough to realize that, I can't trust him on anything else really...
First and foremost my Question goes to Nigerian Eye, where in this conversation did mr sunusi called OBJ a bad economist and good farmer. Rather he described him as good economist who introduces higher denomination with minimal inflation and wonders why he is against their own. Secondly i personally with almost everyone around me see the introduction of 5000 naira note not only unnecessary but evil. Worst still is turning the lower denominations i.e 5 10 20 naira to coin. God will judge you Sunusi ?
ReplyDeleteSanusi. Mind yourself or you go die for sleep. Omo fulani. Do you think Nigerians are cows.
ReplyDeletemy concern is to remove Arabic from our Naira....shikenah!!
ReplyDeleteif your concern is about arabic in Niara, what about the cross used in all our hospitals and clinics? may be you have never been to hospital/clinics before. You better have a rethink. Don't let your be polutted with tales of lies from your leaders, they know the truth only that they will not say it.
ReplyDeleteThere is nothing as stupid as an educated man if you get off the things he was educated in. the bros saying that instead of printing five N1,000 u will only have to print one note. what happens wen i give u N5,000 not for a N1,000 naira transaction? it will only increase cost. imagine that you have 15notes of 1000 in the economy. u now discard 10notes and print 5000 instead which means u will have 7notes. if those 2 5000 notes are used to pay for N1000 goods, how will the two ppl get their N4000 change?Sanusi, financial boko haram. what is ur agender.
ReplyDeleteLets rest our contribution on objective assessment not not tribal or religious grudges i mean unity of purpose, respect for each other, one nation. May God help us.
ReplyDeleteWho is that bigot talking about Arabic language on notes, who cares! If u like put Jesus on it! The issues Is #5000 note coming into circulation is dumb!
ReplyDelete