Business
Analysts Charge CBN On Polymer Notes
Some financial experts have urged the Central Bank of Nigeria (CBN) to reconsider its decision to change the polymer naira notes to paper.
An economist, Mr Henry Boyo, said that the CBN should rather change the polymer notes to coins.
Boyo said in Lagos that coins were more durable as legal tender than notes.
“I expect that the polymer notes will instead be changed to coins because coins can be used more often,“ Boyo, also the Chief Executive Officer of Les Leba Ltd., said.
Reports say that Mr Tunde Lemo, a Deputy Governor at CBN, on Sunday in the U.S., said that the apex bank would soon scrap the polymer notes.
The polymer notes are the N5, N10, N20 and N50 naira denominations.
Another economist, Mr Bismarck Rewane, said that the proposal would not have any negative impact on the economy.
“The change might not be noticeable. Besides, the pursuit of a cashless society will not make the proposal felt by the common man,“ he said.
Rewane said that a full blown cashless society in Nigeria would reduce cash in circulation by N1.7 trillion which had made the proposed policy untimely.
A former President of Association of National Accountants of Nigeria (ANAN), Dr Samuel Nzekwe said that the plan would be a waste of resources.
“Looking at the huge amount of money involved in printing those currencies, such monies should have been used for infrastructural development,“ he said.
Nzekwe said the CBN should focus on reducing capital flight instead of pursuing this proposal.
“The fund to be expended on the plan should be ploughed back to the economy to assist small business with credit,“ he said.
A Deputy Manager, Federal Inland Revenue Service (FIRS), Mr Akin Ojo urged the CBN to critically evaluate the proposal before implementing it.
He said that policy consistency was necessary to grow the nation’s economy.
“The apex bank needs to do in-depth research before embarking on any policy,“ Ojo said.