Nigerians say N5,000 note, not necessary

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By ISAAC ANUMIHE

The Central Bank of Nigeria (CBN), has announced it will introduce into the market a N5,000 note, the highest currency denomination in Nigeria when it debuts. Apart from the new addition, the CBN will pick a hefty budget in billions of nara to remodel existing denominations and turn some into coins.

But this is not palatable to so many Nigerians as they speak up. The other denominations introduced recently into the market are the N100, N200, N500 and N1,000 which were issued in 1999, 2000, 2001 and 2005 respectively. While the N1,000 note is protected by a number of sophisticated security features which are sensed by touch and sight, with the aid of a magnifying lens or under ultraviolet light, it is not clear yet what the features of the new note are made of.

When the N1,000 note was introduced in 2005, there were speculations that the e-payment system or the cashless policy would be affected but the then Deputy Governor of the CBN, Dr. Shamsudeen Usman allayed the fears of the public, saying:  “The introduction of the N1,000 currency note is not to suggest that we have jettisoned the e-payment project but to address the cash component of the payment systems. The e-payment project is still on-going. The reality is that cash transaction has refused to die.

You cannot have a cashless society. It’s not possible, not even in the most advanced economies with all the technology. The introduction of the new note will not amount to a reduction in the volume of the lower denominations. All the denominations will continue to be issued in the right mix and volume to meet the demands of Nigerians and the general public.”

The N1,000 note was to be the last in the series of higher denominations  approved for issuance by the federal government. But, according to sources, the N5,000 note will not only enhance the cashless policy of the federal government, it might also be used to immortalize the late President Umaru Musa Yar’Adua who gave so much to the country. Daily Sun was privy to the coming of the new currency and broke the news, and therefore sampled opinion of Nigerians on the development. It was simply surprising that though the interviews were conducted before the CBN made official admission of the plans, the same names our respondents suggested should be on the note were the ones announced by the CBN later. Since news of the N5,000 note broke, it has elicited comments from stakeholders.

Some Nigerians say the major challenge facing an average Nigerian today regarding the naira is not about the singleness of the N5,000 note, but about the availability of economic opportunities that will enable him to generate and earn such amount productively.

The dilemma of the ordinary citizens who are used to poverty is that the naira is almost worthless in value as to secure any reasonable thing.

Comrade Emmanuel Onwubiko, Rights activist I believe it is unnecessary and irrelevant at this critical time of our nation, particularly when the country is afflicted by severe economic adversities such as unemployment, high crime rate, under-industrialization, capital flight, invasion of the local economy by quacks and unfit persons from abroad who breach the expatriate quota and the constant closure of small scale firms due to high interest/lending rates by financial institutions and the imminent threat of food insecurity.

Farmers are not getting the needed financial lifeline from banks to expand and modernize their farming activities to meet with the large demands for farm produce. The Central Bank of Nigeria ought to begin the implementation of projects and policies to promote local industrialization and to bring down the lending or interest rates charged by banks and other financial institutions in Nigeria.

Certainly, the introduction of N5,000 note is not the issue at this moment. The best way to promote cashlessness is to fix the necessary facilities to enable the cashless system work. A nation without the modern socio-economic facilities like electricity and other technology-driven infrastructure are not in place to implement any economic reform.

By and large, the proposed N5,000 note is not needful now. Most people are going electronic banking and we have points of sales machines and automated teller machines and online channels.  So, with all this in place why do you need N5,000 note when we want to institute a cashless society?. To even contemplate using the portrait of Umaru Musa Yar’Adua, former president who incidentally appointed Mallam Sanusi Lamido Sanusi as CBN Governor is to say the least patronizing and selfish.

If indeed Nigeria needs icons and heroes to use their portraits in any naira note why not adopt the photo of Mrs. Margret Ekpo or the lady who led the Aba Women’s riot instead of using pictures of these same politicians of contemporary times that have led Nigeria into this economic mess through corruption? Sanusi Lamido Sanusi should stop introducing divisive policies like his arbitrary award of N100,000 unbudgeted assistance to Kano victims of Boko Haram attacks and now this weird idea of N5,000 note just few months after he introduced the unpopular Islamic banking that violates Section 10 of the 1999 Constitution.

Ayodele Sebiotimo, media rights activist I don’t think that having another denomination of naira is going to solve our problem. It does not have anything to do with the economy right now. To start with, Nigeria is planning against next year to start with cashless society. If you are talking about cashless society, mobile money, why are you talking of another denomination? I don’t have anything with the former president, late Umaru Yar’Adua.  He contributed his quota. But it has always been the Nigerian issue – sentiments. Why do we have to whip up sentiment and put Yar’Adua’s  face on the note? We have a lot of Nigerians who have done better than him. They deserve to be recognized. But right now I don’t think we need another denomination of the naira.

Abdulwahab Isa, Economy analyst Although CBN has not officially affirmed that they are going to release N5,000 note and N2,000 inclusive, to me we already have inflation on our hand and CBN has not been able to bring inflation to single digit that they have been trying to achieve. So, why do we want to have another currency denomination when the one we have now has not even improved our economy. We have enough currency denominations now that can serve our purpose. That will even enable the politicians to ‘steal’ our money the more.

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34 Comments

  1. Anyaorah Ifeanyi on

    The mistake Sanusi is making is introducing two opposing policies at the same time; Cashless economy and #5000 note. He said that it will be for a class of transactions, I propose that heavy cash transactions should be performed electronically. Logically Money is a representation of value which represent the people’s money which must be spent, it must end up in the common market to meet basic needs. If it does not end up in the common man’s hand then its value must be reproduced in the smaller denominations hence will is redundancy. What I mean for example is that for five Billion in #5000 note to be consumed it must be reproduced in the smaller notes hence making it just a mere means of storage. Sanusi must also know that higher denominations force people to buy what they don’t need just beause they want to break it down, if #1000 forces Nigerians to buy recharge cards even when they have credit, I wonder what we will buy with #5000 in order to break it down. Sanusi must see from the common man’s eye for the economy is theirs.

  2. The issue about the 5000naira note is not to enhance the cashless policy as many of us are thinking but to be used to immortalize the late President Umaru Musa Yar’Adua whom some people think gave so much to this country but the fact remains that he gave nothing but he took a lot from Nigerians.

  3. well going cashless means reducing cash from the streets as much as possible and not making it portable for you to carry more than usual in your pockets and making the most common notes in the streets coins and uncomfortable for common man to carry. Well we dont need it now at all but if he insist, he should only introduce the new notes and live the fifty naira and others where they are and tommake them coins and secondly thinking of umaru musa s portrate in the note is very rediculos or isit because he gave him his job so he want to pledge his loyalty by this? Nooo it shouldnt be. We have other heros we can think of

  4. I dont know what sanusi lamido sanusi what to prove. N5000 single naira note is not Nigerias immediate problem. Nigerians need food, jobs, good schools AND EDUCATED teachers not 5000 naira single note. mr. sanusi, you have a rethink.

  5. The #5ooo nairia note is more of making the value of our currency to loose than serving the huge amount use in printing the small currentcy

  6. The N5000 note is being introduced to make it easier to carry large amounts of cash . Sanusi and the Government of Goodluck Johnathan are perfecting ways of trafficking currency so the can move out huge amounts of Naira which they embezzle.

  7. Mallam Lamido Sanusi‘s selfish intrest has made him unresonable and an object of mockery in d encomic industry. (Eg)Itroduction of Islamic Banking,(2) Itroduction o #5000 note. His reasoning is 2 shallow 2 b there.

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  9. Note that Nigerians who have machines for printing fake money will be panicking on this new move.
    They will oppose the change with every vehemnece.
    Inflation is not caused by the face of our Naira but by macro and micro economic factors.
    I am sure that a three year budget of the CBN will be less with this high value currency.

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  11. about the issue of #5,000 note,i wonder if that is the problem of nigerians.a country which economic statues is nothing to write home about then thinking on increasing it denomination,why not invest that 45billions on infastructures.we are said to be an oil producing country but facing the impotency of no refinary,a source of electricity to other nation but living in total darkness.let come to our sensess and put things rght not coming up with the issue of 5,000 percentage opportunities of embelzement frame to be #5,000note.

  12. Yes is good to try ideas tht can help beta d economy of nigeria but i suggest d cbn gov shld try n fix a day to sit down with his poor police men tht r attached to him n ask thm abt thr day to day hard ship.thn ride okada into d mix of common nigerians n experians thr hardship for just 2hrs.tht ll b whn he ll realise tht currency denomination in nigeria is d worst human error.

  13. Azubuike Noble .c. on

    That’s the worst that will happen to this country, bcus once it is out #100 will be devalued as commodities sold for #10 will catapult to #100 it will automatically influence everything..lets say NO to this intending avenue for money lundering cartel which sanusi is trying to help…and i urge the NJC to surmon lamido to explain to us what he meant that the 5k note is not for everybody……that statement is corrupt and with hiden agenders….5k note is it the way forward?????

  14. chibex oko nlia on

    even if we decide to get one million naira note, it won’t still make for the the huge difference we have between the rich and the poor in our society. all we needd as a country is to create and enabling environment for employment wheere the common man can co-habit and have their basic needs met. our problem as a country is not have leaders with the right(not necessarily best of) ideas on what is the presing need of the people

  15. maduagwu nkemakolam on

    Why are our so called leaders so parochial, immature and senseless. Somebody, has just thought immortalising our past president, there is nothing wrong in immortalising Yar adua, must be to the detriment of the Nigerian economy and people. There are so many other ways we can honour him.
    What kind country are in? why 5000 naira note.?
    I am not an economist, it is going to have a terrible effect on our currency and economy.
    And, it is only the poor man that would suffer the consequencies.
    The want to convert some currencies into coins. How many Nigerians like to carry coins?
    WE ARE IN A SERIOUS TROUBLE AS A PEOPLE……………………….When shall salvation come obviously not with these vampires called leaders.

  16. Mr Sanusi, where ar u leading us to? You want this country to be a cashless one but why the 5000 note. Don’t you know that inflation will rise and everything will ignore the coins. Abeg, think of reducing the zeros nt adding. Think of giving back the 50kobo notes so that our currency can appreciate and compete with other currencies.

  17. This is a complete senseless policy. What Nigerians need now is not an introduction a higher denomination but a policy that will ensure a more vibrant and productive economy. Introducing more cash will only spell more doom by aggravating the tempo of inflation reason being that psychologically, producers and sellers in are known to associate introduction of higher currencies as a justification for price hike. The introduction of N5,000 and the coinage of N5, N10 and N20 only means that commodities which costed these amount would now command higher prices. For instance, a satchet of purewater now sells for N10 if this amount is coined, ofcourse one may expect that sooner, it may rise to N20 or even N50 as Nigerian have a lackadaisical attitude to coins. Coupled with the fact that the cost of doing business in Nigeria is too high more reasons for high prices can be justified. Also from economic literature the introduction of more currencies often mount presure on prices to increase except where this productivity increases which the Nigerian economic enviroment has not provided for. What the CBN has to do now is to see how to encourage the growth of SMEs, bringing down the interest rate to encourage the channeling of funds to the real sectors of the economy these and many more are better policies that the apex bank should concentrate on to drive the national economy to success.

  18. The CBN governor should think of some thing better to do for nigeria; if he cannot remember any, he should just for forget about his unreasonable plans to introduce N5000 notes in the country as it would do us every thing but harm. Even a child in the primary school with an elementry knowledge of Economics knows that, introducing N5000 note would lead to inflation. I wonder whether the so called CBN governor and his team have any background in Economics at all.

  19. The CBN governor should think of some thing better to do for nigeria; if he cannot remember any, he should just forget about his unreasonable plans to introduce N5000 notes in the country as it would do us every thing but good. Even a child in the primary school with an elementry knowledge of Economics knows that introducing N5000 note would lead to inflation in Nigeria. I wonder whether the so called CBN governor and his team have any background in Economics at all.

  20. EMMANUEL CRAWLER on

    immortalize yaradua my foot n u think dat is d best way to immortalize hm, i hv alwayz been a true fan of sanusi but am sorry i wont support hm on dis cos only those who are criminals will like d idea. Maybe if u are looking 4 more jobs 2 do y nt work on d value of our dear naira.thanks

  21. so,d problems of nigeria is #5000 denomination?what is d essence dat a sesitive post as economy was given 2 an economist and notin is 2 show at least d definition of economics.Secondly,so CBN governor want 2 paybak late president & his family by imortalizing him wit #5000? ls it d only tin he remember 2 do 4 dem? why nt used d cost and empower citizens?why do we nigerians like 2 imortalize pple wen they’re dead instead of alive?

  22. Igbo must get separated from the Islam moslem. Sanusi must destroy his country in the sake of Qur’an as it’s written falsely, uselessly and senselessly. GO TO HELL NIGERIA

  23. A corrupt entity does not need the 5000 naira note. The minimum wage is 18,000. So, some people will be paid three notes and the looters will take bulk of 5000 naira notes. We still need the military.

  24. Our leaders are so bad that they don’t mind the sufferings of the Nigerians people. What good will N5000 introduction do to the already oppressed and rejected people of Nigria? Our leaders are occultics that whenever the take decision, no one dare challenge the decision taken. So Nigerians shouldn’t be suprised if the woke up one day and hear that the N5000 note has been introduced for public use. They have united themselves to share our God’s given wealth but is very unfortunate that instead of us to unite against them, we are there killing ourselves. They want to introduce inflation with N5000 notes, God will surely fight them for us.

  25. Mallam Sanusi, we all know as you know that you and your boko haram brothers are out to spoil GEJ’s government with your satanic policies. Change your style as you can never play God, be warned!

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