The move by the governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi to introduce N5, 000 notes as legal tender in Nigeria may have received the endorsement of the Economic Management Team.
After its weekly sitting presided over by President Goodluck Jonathan some of the members of the team who spoke to state house correspondents said that the move was in the right direction and remains the prerogative of the CBN.
The Minister of National Planning, Shamsudeen Usman, who was the first to speak after the meeting, said that the CBN merely proposed the introduction of the N5000; the president approved it while the economic management bteam endorsed.
“Obviously, the discussion today was basically to endorse. Mr. President had already approved; that is the only requirement by law. The CBN is to propose and Mr. President is to approve. And since Mr. President has approved, really what is important is to just explain. I personally had some concerns about the coins but since some discussion with the CBN governor, he has actually clarified that even the media didn’t get it”, Mr Usman said.
Arguing that the N5000 note, unlike some people were misrepresenting it, was not going to lead to higher inflation, Mr Usman also hinted that CBN was going to communicate to Nigerians that the coins will run concurrently with the naira notes they are replacing as a form of test-run for Nigerians to accept them first.
He said, “There is absolutely no link. I am an economist. I have been deputy governor operations of the Central Bank. In the last review of the introduction of N1000 note and the various coins I was deeply involved; it was my responsibility at the central bank. There is absolutely no link between inflation and the currency denomination.
“The coins are being introduced on an introductory basis so that if people accept them and are using them, then gradually they will withdraw the other notes but they will run concurrently with the notes. Those were my concerns initially because you remember during my time in the CBN; we introduced the one naira and two naira coins. Unfortunately, they were not utilized at all. Part of that is really the value of one naira and two naira today. What can you buy?”
On the contention that there is a link between the N5000 note and corruption, he said, “It is an area that I obviously know nothing about. I think people alleged that part of that corruption is being done in dollars. A $100 bill is N16, 000 and N5000 note will be $30. So, which one is bigger to carry if you are doing corruption?
“So, I don’t think it is necessarily going to increase the level of corruption. Those doing corruption will probably find that too small. $100 bill is still bigger than the N5,000 note”, the minister added.
Also speaking, some members of the team from the private sector including Peterside Atedo, business mogul Aliko Dangote and Aigboje Aig-Imoukhuede said the introduction of the N5,000 notes has nothing to do with inflation.
On his part, the governor of Anambra State, Peter Obi said that what Nigerians should concern themselves with is how to increase improvement in manufacturing and agriculture.
