News
N5,000 Note: Mixed Reactions Trail CBN Decision
The Central Bank of Nigeria’s decision to introduce into
circulation a single N5,000 currency note by early 2013, has generated mixed
reactions from financial experts across the state, who see the move as a
contradiction of much publicised cashless policy.
Speaking in an interview with The Tide in Port Harcourt last
Friday, the former Head of Department, Banking and Finance and Senior Lecturer,
University of Port Harcourt, Dr Prince Nwakanma said the pronouncement by CBN
last week is a contradiction of the
cashless policy which the apex bank is yet to fully enforce.
Dr Nwakanma said cashless policy encourages lower
denomination in circulation, wondering why the N5,000 note should be introduced
now when naira has lost considerable value.
‘What CBN should be thinking is how to raise the value of
naira like other countries”, he said, noting that, there is no wisdom in that
introduction, which definitely will fuel inflation with adverse effects on our
economy.
He stated that by the policy, CBN only aims to reduce the
cost of printing the naira.
The General Manager, Hencon Group of Companies, Mr Silas
Igwe in his opinion, aligned with Dr Nwakanma, adding that the cashless policy
will reduce inflation, armed robbery and indiscipline on the part of leaders
who lack accountability and probity.
Igwe, a fellow of the Institute of Chartered Accountants of
Nigeria (ICAN) warned that the reference made by CBN to USA and other developed
countries’ economies is a clear evidence
that ‘we are treading on a dangerous
ground, adding that “ for every monetary policy there is an effect on the
economy.
He noted that the re-introduction of the coin amounts to
policy inconsistency on the part of CBN, which according to him, had
de-emphasised the policy, saying I think
there is confusion in the system”.
In a related development, the Project Director, BroadBase
Engineering Services Limited, Mr Temple Nwichi has said the policy is a conduit
through which the political elite plans to siphon the Nigerian economy and
pocket the entire money in circulation, using a very small bag”.
Nwichi, also a financial expert noted that aside
contradicting the cashless policy, CBN should know that conversion of currency
notes to coin is a sure way of
eliminating them from circulation”.
He called on CBN to withdraw the N1,000 note in circulation
and go back to what the former CBN Governor, Chukwuma Soludo planned to do to
strengthen Nigerian currency, adding that those listed for immortalisation
should be honoured through other means.
But on the contrary, the Special Adviser to the Rivers State
Governor on Special Projects, Mr Austine Nwakoh expressed satisfaction with the introduction of the
N5,000 note, adding that most developed countries even have higher currency
denominations which are also in circulation.
Nwakoh stressed the need for CBN to enforce the use of coins
by Nigerians, pointing out that the use
of coins has a multiplier effect on the
economy.
Meanwhile, Nigeria‘s foremost opposition party, Action Congress
of Nigeria(ACN) has asked the Central Bank of Nigeria (CBN) to have a rethink
on its intention to introduce the N5,000 note as the highest denominated legal
tender in Nigeria by year 2013, stressing that its demerits far outweigh the
merit.
In a statement issued in Lagos, yesterday, by its National
Publicity Secretary, Alhaji Lai Mohammed, the party warned that though the
introduction of this new high denomination may serve the dual purpose of
raising revenue for government on the one hand and reduce the cost of
transactions on the other hand, the unintended consequences and collateral
damage of introducing the N5,000 may far outweigh the benefits of the new
measure .
According to the party, there is a strong historical
evidence that the introduction of higher and higher face value currency notes
in an economy often signifies a regime of increased and sustained fiscal
deficit financing.
The party said the issuance of such high value currency
notes is likely to be perceived as an indication of government’s failure to
effectively control inflation.
The party stated that the issuance of the N5,000 currency
note runs counter to the recent policy of the Central Bank of Nigeria to
promote a “cashless” economy by encouraging the increased use of non-cash transaction
instruments.
“This policy which is aimed at reducing the use of cash had
been justified by the need to reduce the burden of the cost of printing and
distributing currency notes. The introduction of a high face value currency
note actually does the opposite because by reducing the unit cost of printing
and transportation, it actually would promote the use of cash.
He further stated that the issuance of the new N5,000
currency note also runs counter to the government’s often repeated commitment
to fight corruption. It is widely recognised that large scale corruption tends
to be facilitated by the ease with which unrecorded and large cash transactions
can be made,” the party stressed.
The party, said, the introduction of the denomination would
lead to increased illegal/criminal, drug related and terrorist activities, as
well as money laundering. “The ease with which the new N5,000 currency notes
can be transported will make it an ideal instrument for the facilitation of
these undesirable activities,” the party said adding that the close
relationship between inflation and the issuance of high value currency notes is
perhaps best illustrated with real life experiences of a number of countries
including Argentina, Bolivia, Peru, Poland, Angola, Zaire/DRC and Zimbabwe, and
called for policy reversal.
However, some politicians have advised the Central Bank of
Nigeria (CBN) to do a thorough cost and effect analysis of the planned
introduction of the N5,000 note early next year on the economy.
The politicians, who spoke in separate interviews with
newsmen in Lagos yesterday, also urged the apex bank to carry Nigerians along
in the processes leading to the implementation of the policy.
Our correspondent recalls that the CBN Governor, Sanusi
Lamido Sanusi last Thursday announced the planned introduction of the N5,000
note and the conversion of N5, N10, N20 and N50 notes to coins.
Sanusi said that new currency would be introduced early next
year under the CBN’s currency re-design programme tagged ‘Project Cure.’
Similarly, a chieftain of the Congress for Progressive
Change (CPC), Mr Denis Aghanya, also
urged the CBN to educate the people for better understanding of the advantages
of introducing the N5,000 note.
“There is need for CBN to educate Nigerians for them to know
that the introduction of the N5,000 note is in order because we need to reduce
the volume of cash in circulation and possibly imbibe the cashless economy.’’
He, however, said that the conversion of the lowest
denominations to coins would not work because Nigerians would abuse it and melt
it into aluminium products.
The Secretary of the Campaign for Constitutionalism and
Human Rights (CCHR), Mr Toyin Raheem, an
NGO, also said that government needed to enlighten the people before
introducing a new denomination.
According to him, the introduction of a higher naira
denomination always brings about unanticipated challenges.
“The government needs to assure us that this new N5,000 note
will not cause inflation because we believe that this is the genesis of
inflationary trend,’’ he said.
He expressed doubts that the introduction of coins would go
down with majority of Nigerians, noting the fate of the existing ones.
However, the National Publicity Secretary of the Advanced
Congress of Democrats (ACD), Dr Breakforth Abraham said he was not in support
of the introduction of the new denomination.
“The N5,000 note will do Nigerians bad than good as it will
devalue our currency and fuel inflation.’’
He argued that the CBN had not deemed it fit to enforce the
usage of the existing coins, the hence the conversion of smaller notes to coins
would not work.
The Deputy National Chairman of the Alliance for Democracy
(AD), Alhaji Musa Umar, also flayed the
introduction of N 5,000 note.
“The proposed introduction of N5,000 note is a surrender
move by the CBN to the inflationary assault on the economy.
“This is an indication that we are losing the economic
battle and mega inflation is foreseeable,’’ he said.
Umar advised that the economy be diversified to return peace
and stability to the polity so as to pave way for foreign direct investments.
“The case of Zimbawe really depicts more graphically how
rapidly things can get out of control on the introduction of high value
denomination currency notes. On the 5th of May, 2007, Zimbabwe issued currency
notes with face values of Z$100million and Z$250 million. On 15 May 2007 a new
bank note of Z$500million was issued, followed by the issue on 20th May 2007 of
currency notes in denominations of Z$5billion, Z$25 billion, and Z$50 billion.
Finally, on 21 July 2007, bank notes with a face value of Z$100 billion were
issued.
“Eventually, Zimbabwe abandoned its own currency and
legalised the use of only foreign currencies. Curiously enough already in
certain places in Nigeria today the American dollar is the accepted legal
tender. In conclusion the party warned that the introduction of the five
thousand Naira currency note may be a step in the wrong direction, and down a
slippery slope towards hyper -inflation and that it is time to abandon failed
inflation-control policies and inadequately thought- through experiments,” the
party recalled.
News
China Alerts Rivers, A’Ibom, Abia Govs To Economic Triangle
The Mayor of Housing, My-ACE China, has alerted the Governor of Rivers, Akwa Ibom, and Abia states to what he calls an emerging ‘Economic Triangle’ within their states.
Mr China, a real estate success strategist who has won numerous local and international awards, has thus drawn the attention of the governors of the concerned states to the emerging development and has urged them to intentionally accelerate the emergence of the economic triangle.
Speaking to newsmen in Uyo, Akwa Ibom State capital at the conclusion of his business trip to the state, Mr China, who is the managing director of the Housing and Construction Mayor Limited, said the envisaged economic corridor would compete favourably with the Lagos economic hub or even better.
He said: “Talking about ‘Economic Triangle’, the only place that can wrest economic power from Lagos is Akwa Ibom, Abia, and Rivers states axis or corridor. This corridor contains more than Lagos has, if they can be interconnected with smooth roads, ports, and if their blue potentials are unlocked. They will not only wrest power from Lagos but would be more lucrative.”
The investor who is behind the emerging Alesa Highlands Green Smart City in Eleme, near Port Harcourt, said the new ‘Economic Triangle’ has a bigger potential due to massive land assets with the corridor plus blue economy and the existing hydrocarbon industry.
Explaining, Mayor of Housing said Aba (Abia State) provides the biggest fabrication capacity in West Africa to supply goods to the Gulf of Guinea; Port Harcourt provides access to the Gulf of Guinea for off-taking Aba products, and the Uyo provides deep sea port at Ibaka and international airport facilities as well as forest reserves for massive agro-economy.
He said with sea ports in Rivers State and deep seaport in Akwa Ibom, and international airports in Rivers and Akwa Ibom, Aba can focus on adequate power supply and fabrication boom to supply a new booming market around the economic triangle.
By doing this, he said, jobs would spill out in huge quantities and more manufacturers would be drawn from all over Africa to boost the fast coming African Continental Free Trade Agreement (AfCFTA). He said Nigeria would thus have two major trade nodes in West Africa; Lagos and the PH/UYO/Aba triangle.
He said goods going to or coming from Chad, Niger, and the rest of Central Africa can head to the Lagos ports or to the Ibaka/PH ports zone in the new economic triangle.
He said with power supply made stable, good roads, excellent security system, and ease of doing business enthroned in the zone, the South-South and South East would become the biggest economic nerve in the near future.
Mayor of Housing called on governors of the three states to be intentional about the new corridor, put away political differences (if any), and create this corridor by agreeing on projects each state would execute with a short period of time so the states would be linked by good roads, communication, security, trade laws, concessions to investors, etc.
He remarked that northerners were already heading to the Onne Port in Rivers State to export goods, saying creating a commission to oversee the development of the ‘Economic Triangle’ would fast-track its emergence.
He observed that people of the three states are peaceful and usually preoccupied with zeal for economic prosperity, saying that if they are linked to such huge opportunities staring at them in the emerging economic triangle, they would totally shun violence and focus on prosperity.
Mr China insisted that the emerging economic triangle would form a big node not only into the Gulf of Guinea economic zone but into Africa because AfCFTA is about production, certification, market availability, and easy transport nodes by sea and air. He said the new economic triangle boasts of all the factors.
“They can only realise this by working together, through collaboration. One state cannot do it but a triangle of the three will create it through seamless interconnection, ports, industrial park, etc. The people will be the richest and internally generated revenue (IGR) will be the biggest in the country,” he said.
News
Tinubu Nominates Ex-INEC Chair Yakubu, Fani-Kayode, Omokri, 29 Others As Ambassadors
President Bola Tinubu has sent the names of 32 ambassadorial nominees to the Senate for confirmation, days after he sent the first batch of three names.
Among them are the immediate past chairman of the Independent National Electoral Commission, Mahmud Yakubu, an aide to former President Goodluck Jonathan, Reno Omokri (Delta), and former Enugu State Governor, Ifeanyi Ugwuanyi, among others.
“In two separate letters to the Senate President, Godswill Akpabio, President Tinubu asked the Senate to consider and confirm expeditiously 15 nominees as career ambassadors and 17 nominees as non-career ambassadors,” read a statement on Saturday by the Special Adviser to the President on Information and Strategy, Bayo Onanuga.
In the statement titled, ‘Tinubu nominates 32 additional ambassadors,’ Onanuga noted, “There are four women on the career ambassadors’ list and six women on the non-career ambassadors’ list.”
“Among the non-career ambassador designates are Ogbonnaya Kalu from Abia, a former presidential aide, Reno Omokri (Delta), former chairman of the Independent National Electoral Commission (INEC), Mahmud Yakubu, former Ekiti first lady, Erelu Adebayo, and former Enugu governor, Ifeanyi Ugwuanyi.
“Others are Tasiu Musa Maigari, the former speaker of the Katsina House of Assembly, Yakubu N. Gambo, a former Commissioner in Plateau State and former Deputy Executive Secretary of the Universal Basic Education Commission.
“Professor Nora Ladi Daduut, a former senator from Plateau; Otunba Femi Pedro, a former Deputy Governor of Lagos State; Femi Fani-Kayode, a former aviation minister from Osun State; and Nkechi Ufochukwu from Anambra State are on the nomination list,” the statement read.
Also on the list are former First Lady of Oyo, Fatima Florence Ajimobi, former Lagos Commissioner, Lola Akande, former Adamawa Senator, Grace Bent, former governor of Abia, Victor Okezie Ikpeazu, Senator Jimoh Ibrahim, businessman, lawyer and Senator from Ondo State, and the former ambassador of Nigeria to the Holy See, Ambassador Paul Oga Adikwu from Benue State.
Among the nominees for career ambassador and high commissioner-designates are: Enebechi Monica Okwuchukwu (Abia), Yakubu Nyaku Danladi (Taraba), Miamuna Ibrahim Besto (Adamawa), Musa Musa Abubakar (Kebbi), Syndoph Paebi Endoni (Bayelsa), Chima Geoffrey Lioma David (Ebonyi) and Mopelola Adeola-Ibrahim (Ogun).
The other nominees are Abimbola Samuel Reuben (Ondo), Yvonne Ehinosen Odumah(Edo), Hamza Mohammed Salau (Niger), Ambassador Shehu Barde (Katsina), Ambassador Ahmed Mohammed Monguno (Borno), Ambassador Muhammad Saidu Dahiru (Kaduna), Ambassador Olatunji Ahmed Sulu Gambari (Kwara) and Ambassador Wahab Adekola Akande (Osun).
“The new nominees are expected to be posted to countries with which Nigeria maintains excellent and strategic bilateral relations, such as China, India, South Korea, Canada, Mexico, the United Arab Emirates, Qatar, South Africa, Kenya, and to Permanent Missions such as the United Nations, UNESCO, and the African Union.
“All the nominees will know their diplomatic assignments after their confirmation by the Senate,” it read.
Last week, Tinubu sent three ambassadorial nominees for screening and confirmation.
The nominees were Ambassador Ayodele Oke (Oyo), Ambassador Amin Mohammed Dalhatu (Jigawa), and Retired Colonel Lateef Kayode Are (Ogun).
All three are in the pot for posting to the UK, USA, or France after their confirmation.
“More nominees for ambassadorial positions will be announced soon,” Onanuga revealed.
News
Investment In Education Remains Top Priority For Gov Fubara – SSG
The Secretary to Rivers State Government, Dr. Benibo Anabraba, has reiterated that the administration of Governor Siminalayi Fubara remains committed to improving access to quality education at all levels.
Dr. Anabraba gave the assurance while receiving the Deputy Registrar/Zonal Coordinator of the West African Examinations Council (WAEC), Mr Ayanfemi Adeniran-Amusan in Port Harcourt during a courtesy visit.
He emphasised that Governor Fubara remains resolute in sustaining investment in the education sector to improve the quality of teaching and learning.
According to him, “We appreciate the work you are doing and know that our students are amongst the highest in ranking.
“His Excellency, Sir Siminalayi Fubara, takes education very seriously. He is sponsoring the free registration of students for the West African Senior School Certificate Examination (WASSCE) in Government Schools.
“Also, Governor Fubara has approved the establishment of Computer-Based Test (CBT) Centres across the State’s three senatorial districts and the 23 LGAs. The project is intended to improve access to digital learning and examination facilities for students so that our children are at breast with digital literacy, a prerequisite for today’s students.
“We are currently working assiduously to get those centres, both mega and mini, across the three senatorial districts and the 23 local government ready in order to meet up with your deadline,” he said.
The SSG also conveyed the assurances of the Governor to WAEC on Government’s willingness in providing land for its Zonal Office.
Earlier, the Deputy Registrar/Zonal Coordinator of the West African Examination Council, Mr Ayanfemi Adeniran-Amusan, promised to collaborate with the State Government in matters concerning education development.
In another development, the Secretary to State Government, Dr Benibo Anabraba, also met with officials of the National Agency for the Prohibition of Trafficking in Persons, NAPTIP, led by the Assistant Director of Intelligence, Rivers State Command, Barr. Ikediashi Nwamaka.
The SSG while appreciating the Agency for its effort in the protection of vulnerable persons, also raised Government’s concern on the activities of orphanages and care homes in unwholesome practices such as child trafficking, abuse of underaged girls also known as baby-factory, and the lack of regulations on surrogacy.
He however assured that the Rivers State Government has already put plans in place towards legislation to regulate these acts against vulnerable persons, particularly women and children.
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