The Central Bank of Nigeria (CBN), on Monday, said that the planned introduction of the N5000 note will save the nation about N7 billion in cost of printing money this year.

Ugochukwu Okoroafor, the apex bank's spokesperson, denied claims that the printing of the proposed N5000 note will cost N40 billion. He insisted that the new denomination is aimed at saving the nation the cost of printing money, allow for easy transportation of cash, and better management of the nation's currency, among other benefits.

Reacting to claims that the new note will jeopardise the ongoing Operation Cashless of the apex bank, Okoroafor said that the new note will complement it and stressed that the new note will not lead to inflation.

"The amount of money in circulation will not be affected," he said.

The planned introduction of the N5000 denomination has been severely criticised by Nigerians and experts who believe that the introduction of the note will render the lower denominations valueless, thereby spurring inflation in goods and services.

http://dailytimes.com.ng/article/n5000-note-will-save-nigeria-n7b-2012-cbn?utm_source=twitterfeed&utm_medium=twitter

So How much will it cost NIGERIANS. .?

I bumped into this article and I believe we should read and note that history is about to repeat itself. Is this a grand receipt by CBN? You may need to read the whole article to understand fully what the writer was saying.

Polymer currency: waste, deceit & commonse- by les leba
Posted on November 2, 2009

...In an article titled “Hurray! The Coins are Back, But…” of 26/02/2007 in this column, we noted that “the economic wisdom in coin production is in their long lifespan (coins can last over 50 years)… and that the initial production cost can be amortized profitably over its lifespan, but that is assuming that the coins are available and remain in use”. “If, however, the coins disappear or receive the undue patronage of makers of jewelry, gift items, modern art, etc, both at home and abroad, because of their inherent purchasing poer, the lifespan of the coins will have been truncated on the altar of commercialism, and our CBN may unwittingly end up funding or indirectly subsidizing the cost of finished products made from Nigerian coins which have been melted and recycled! If this scenario becomes reality, then, the new currency profile, including coins may die a premature death and our expectation of a damper on inflation or the facilitation of change for consumer purchases may become unrealized; meanwhile, Nigerians would have wasted the economic cost of production (running into tens of billions of naira) and the additional cost of promoting the acceptance of the new currencies!”

Alas, I regret that less than three years after, this prediction is bang on target! The CBN has since admitted that the coin introduction was misguided and have since withdrawn these coins and offered them for sale, no doubt, at a discounted price! Oh my country! In October 2009, as if in demonstration that the CBN has not learnt its lesson with regard to profligacy with public funds, N5, N10 and N50 denominations which had earlier been released as new note issues in late 2006 have again been re-released, this time, with much more expensive polymer material. Meanwhile, cost-effectiveness and security of currency which were touted as the objective of billions of naira expenditure on refurbishing CBN owned “Nigeria Mint and Security Co.” had been jettisoned….

...Once again, with a sinking feeling of déjà vu, the CBN has embarked on an extensive and expensive media blitz to promote the acceptance of these new notes, but the question as to their utility and adoption would, no doubt, depend on their perceived purchasing power. The superiority of the polymer notes are identified in ongoing CBN adverts as being user-friendly; they look better and remain crisp over a long period; and they do not stain, rumple or tear easily. The CBN also claims that polymer notes will save the nation huge sums of money used for reprinting. What, of course, the adverts do not say is that the polymer notes are multiple times more expensive than paper notes; although the polymer notes may be more durable than the paper version, we do not know anything about its cost effectiveness vis-à-vis coins, which can last for over 50 years, in spite of any rough handling or harsh climate. However, the Nigerian public, as noted in our article “The Putrid Mess Also in CBN – 3” of 28/09/08, have recognized that polymer notes fade and peel easily, especially when they are wet or folded; polymer notes will shrivel when they come in contact with any heated object and they are less amenable to the abiding Nigerian culture of folding notes…”…
http://www.businessguideghana.com/?p=2795