That Noise Over The N5,000.00 Note

On August 23, 2012, the Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi announced plans to introduce a single N5,000.00 note into circulation and to reduce the existing N5, N10 and N20 notes to coins by early 2013 in line with statutory regulations.

Unveiling the plan in Abuja at a news conference, Sanusi said that the three women: Margaret Ekpo, Funmilayo Ransome-Kuti and Gambo Sawaba, involved in the independence struggle of the country have been nominated to be in the new N5,000.00 note, adding that the notes and coins were being introduced under the bank’s currency restructuring exercise tagged: “Project Cure.”

He said the CBN board had considered and approved the new currency series on November 28, 2011, adding that the bank also sought and obtained the approval of President Goodluck Jonathan on December 19, 2011, as required by law.

According go Sanusi, “under the new structure, the existing denominations of N50, N100, N200, N500 and N1000 denominations would be redesigned with added security features,” stressing that when the new structures come on stream in 2013, the Naira currency would comprise of six coins of 50k N1, N2, N5, N10, and N20; and six banknote denominations of N50, N100, N200, N500, N1000 and N5000.

The CBN governor also allayed fears that the new N5000 note might trigger inflation, heighten corruption and ridicule the cashless policy of administration. He said there was no correlation between higher currency denominations and inflation, while the new policy would instead complement its cashless policy and tone down corruption as the volume of currency in circulation would drop.

While stating that the introduction of the new currency series would be a gradual process as the new banknotes would circulate simultaneously with the old ones until they are fully withdrawn from circulation as legal tenders, the CBN assured that it would ensure that “the coins collection is convenient and the infrastructure readily accessible,” just as it would liaise with all stakeholders to encourage use of the coins.

Surprisingly, the proposition attracted some measure of opposition based on a number of fears. Following the un-scientific analysis churned out by some vested interests, many people expressed fears of possible inflation and imputed a hidden ploy for people to steal huge sums of money from the public coffers with ease. Some also feared that counterfeit copies of the N5,000.00 note could ruin the economy.

Even more surprising is the robust opposition put up by the Nigeria Labour Congress (NLC) that threatened to demand pay rise if the currency was restructured. There were also fears of a possible devaluation effect the proposition might have on the naira. For these, some people have already staged public protest in Lagos to raise the noise over the innovation.

In response to these, the Managing Director, Access Bank, Aigboje Aig-Imoukhuede, Chairman, IBTC, Chief Atedo Peterside, Chairman, Dangote Group, Aliko Dangote, and other prominent Nigerians and experts have since endorsed the policy and further explained that the printing of the new banknotes would even reduce the cost of printing the old smaller Naira bills.

They argued that last year alone, the CBN spent N47 billion to print these small banknotes, stressing that with the new structure, it would take less amount to push same volume of money in circulation.

The Tide agrees no less with the CBN, the Federal Government and all well-meaning Nigerians who have supported this bold initiative to give new fillip to the nation’s monetary structure. We also condemn calls for the CBN to rescind its decision on the new structures.

For us, these criticisms of the CBN are orchestrated attempts to fraudulently score cheap political points and callously discredit a performing Jonathan administration. The attempt to politicize a purely financial and lawful action  of the CBN is highly regrettable.

We believe, and honestly too, that all the experts who have defended the new policy mean well for Nigeria and the future greatness of our country.  This is why, The Tide, more than ever before, calls for total support for the innovation, irrespective of political or religious leanings. Anyone who is unable to accept positive change cannot help Nigeria, especially in her quest for transformation.

Clearly, the benefits of the new notes are there for all to see, even the ease of moving bulk sums without attracting attention. Our only hope is that the coins would be made with lighter materials and in small sizes to facilitate easy handling and safe-keeping even in pockets and purses. But let the noise over the N5,000.00 note end, so as not to incite people to respond negatively to this wonderful plan.