Its like sls has charmed our amiable president, and d entire country o, hear foolish words.

chamber2:



You seem to me like one ''obodo oyibo'' bred kid! No economy functions in isolation of the socio-psychological disposition of the people. Spending N40b just to print some piece of paper so as to create some measure of convenience is bad economics if you ask me, especially in a country riddled with poverty, inequality, corruption and unemployment. The ONLY benefit of the N5000 is the assumed convenience it creates and the reduction in currency management cost. Aside this, nothing else. Over the last few months the CBN and it's agents have been selling the ''cashless'' policy gospel to Nigerians. This policy was designed to reduce the quantum of cash in circulation, promote operational efficiency, reduce thievery and other vices, and ultimately leads to job creation through the establishment of POS and other payment infrastructures. Now, tell me where the N5000 enters into the equation? Cashless policy and new currency introduction, complete counter-policy initiative!

On the issue of coins, history has shown that Nigerians dont feel comfortable carrying coins. This may be as a result of lack of facilities that will facilitate the use of coins e.g phone boots, train transportation etc. So, reducing N20 to coin will mean outright disappearance of these lower denominations thereby making N50 the lowest denomination with its attendant inflation pressure. So, couldn't the CBN wait for a while to see how successful the cashless policy will be before this new currency restructuring? Why the haste? The cashless policy would have complemented the new currency if adequate time was given for a complete introduction of the cashless regime.

Now, one CBN deputy governor came up to say that the people can reject the N5000 note from the commercial banks if they deem necessary. Reject a legal tender, how possible? The problem we have as a country is that we live in a time when those in positions of authority systematically lie to its people so as to gain little personal advantage. This is the delima of the Nigerian society

That is why you are a mugu. We spend 40billion naira, what of the benefits? Do you analyse costs alone without benefits? That is why we are economists and we look at cost-benefit considerations before reaching a conclusion. Most of the benefits we see are even intangible and we don't expect mugu's like you to see it. Some of you people are really daft beyond repair. GOSH!!! Is this what Nigeria has become, that young people cannot analyse issues critically? If you take ten 1000 naira notes and put it into two 5000naira notes, is that not savings? In terms of handling, minting, storage e.t.c. To the aggregate economy, more efficient transactions. We know your Alaba brain cannot see beyond the money you store under your bed.

At times when people like you talk about inflation, I want to laugh. So if I convert 500naira into coins today, the price of pure water will become 1000naira and 500naira will disappear? Ikeja to Ojodu Berger will become 1000naira? Osodi to Mushin will become 1000naira? Stop this your ignorant analysis.

Nigerians do not feel comfortable with coins, what you have not admitted is that it is a waste on the economy that people don't spend coins.

Change is what we want, enough of the waste on the economy. The main issues that affect the value of the naira you dolts don't even challenge. You focus all your energy on a reform that has no effect on prices and interest rates.

faithin9ja:

But you foolish oh!!!!!

$20 = N3200, $50 = N8000, $100 = N16,000
In US they use $20, $50 and $100 bills to pay for their goods and services.

We in Nigeria should be able to pay for something worth $50 in less than 5 notes: we currently pay for something worth $50 with at least 8 notes (ie 8 x N1000) - you work out the cost of printing and transporting those 8 notes. Now with N5000 you can pay with 2 notes or 4 notes.

Please remember $5000 is not the N5000.

The phone or laptop you use to post rubbish on this website cost you how much? You probably carried 50 notes to Computer Village to buy the phone or laptop, why wouldn't prefer to carry only 10 notes?

you obviously dont reside within Nigeria...and by the way,pls take ur tranquilizers before u commment on my post ok!

ballabriggs:

That is why you are a mugu. We spend 40billion naira, what of the benefits? Do you analyse costs alone without benefits? That is why we are economists and we look at cost-benefit considerations before reaching a conclusion. Most of the benefits we see are even intangible and we don't expect mugu's like you to see it. Some of you people are really daft beyond repair. GOSH!!! Is this what Nigeria has become, that young people cannot analyse issues critically? If you take ten 1000 naira notes and put it into two 5000naira notes, is that not savings? In terms of handling, minting, storage e.t.c. To the aggregate economy, more efficient transactions. We know your Alaba brain cannot see beyond the money you store under your bed.

At times when people like you talk about inflation, I want to laugh. So if I convert 500naira into coins today, the price of pure water will become 1000naira and 500naira will disappear? Ikeja to Ojodu Berger will become 1000naira? Osodi to Mushin will become 1000naira? Stop this your ignorant analysis.

Nigerians do not feel comfortable with coins, what you have not admitted is that it is a waste on the economy that people don't spend coins.

Change is what we want, enough of the waste on the economy. The main issues that affect the value of the naira you dolts don't even challenge. You focus all your energy on a reform that has no effect on prices and interest rates.

^^^

If this is how Economists reason in real life then i would rather not study it. What if the same N40b was spent on maybe Agriculture, rural health facilities, education etc wouldn't it have been better? You have obviously lost touch with reality. Where is Soludo's coins after 5yrs of its introduction? Did you know how much that was spent introducing the current N1000 note by soludo and the polymer notes, of what use are they after 5yrs?

chamber2: ^^^^

you are the one talking rubbish! Yes, complete rubbish. You forgot these were still the same problem the cashless policy was designed to curtail. Why do i even need to carry cash to buy a single computer when i can conveniently order online or pay with card?

Do we even need the higher denomination even when cashless policy is being canvassed? The cashless policy, if well implemented, will address almost all the problems you enumerated. It's not rocket science.

leave them...he/she prolly works wif CBN and endorses whatever policy they cough out...so shld we carry strictly N5000 notes simply becos we dont wanna carry large sums of cash?
they keep acting like the economics they study abroad is 100% applicable to nigeria...

I ask who pays for something above $300 dollars in cash in the US?? But i see people buying Laptops worth over 150k cash.

There are more effecient ways to handle cash movement... #5000 is not the only option. I remember Rio Fernand saying 2yrs ago upon receiving £50,000 pounds lottery in cash 'this is the highest/1st time im seeing this amount in cash' but this Guy earns what per week? Does he owe a laptop or phone or automobiles worth over 50k.. Which he paid for?! Or is he a theif?

oradee:



you obviously dont reside within Nigeria...and by the way,pls take ur tranquilizers before u commment on my post ok!

That's problem with Nigerian youth today, jump on a bandwagon without understanding the issues. For your information I reside in Nigeria and do business in both Nigeria and other countries, including Ghana, Uk and US. I have bank accounts in Nigeria, Ghana and UK. I also employ people in Nigeria and pay salaries.

Instead of thinking of how we will increase the income of Nigerians you are thinking that pieces of paper are the problem, or how many 'zeroes' behind a currency. Anyway I can't blame you, I blame IBB for his failed education policies because many of the those who graduating after 1993 are just brain washed poorly educated, pastor chasing follow follow. Anything your pastor or Iman talk is all you do. Think for yourself young man. You can still find the 10 kobo coin minted 40 years ago, where are notes made 3 years ago?

5,000 Note

I don’t give a damn whether N5,000 note is introduced or not. Only those who are likely to benefit from the booty would give a damn. I don’t see how the introduction will improve my personal economy or that of the nation. None of the proponents of the introduction of the N5,000 note starting from the Central Bank of Nigeria (CBN) to the highest echelons of Aso Rock has even made the case that the introduction of the note will improve the Nigerian economy. Not one of them! The only thing I have seen so far is a desperate defensive posture to whatever well-meaning people say. They keep telling us that the introduction of the note will not cause inflation. OK, fine; will it reduce inflation? Or strengthen the value of the naira? Or turn the naira into a convertible currency? So what boost will this move give the Nigerian economy to warrant this desperation to spend a princely N40 billion on its production?

If we have N40 billion disposable fund as a nation at this critical time, it is hardly on such trifle idea that we should be spending that kind of money. In spite of all the talk and promises, the nation’s electricity problem has actually worsened since Jonathan took over power. Our obsolescent infrastructure begs for heavy investment: it has been estimated that Nigeria needs an investment of $10 billion yearly over the next 10 years in order to join the modern world. We still have no transportation system and our refining capacity, for a nation of 167 million people, has become a joke, as we now rely on countries like Niger Republic for our fuel needs.

The most intractable issue of our time is the current security challenge. The entire nation has been taken over by hoodlums because our police are ill-equipped and poorly funded. In the last three years, the police have not received up to 20 per cent of their approved budgets and we only need to compare the quality of weapons used by our police with those of Boko Haram or the Niger Delta militants or even armed robbers – who, these days, use grenades to rob banks – to know that Nigeria doesn’t stand a chance. So, if we have N40 billion to spend, it will certainly not be to print fancy N5,000 notes. Our current police strength of about 360,000 is scandalously inadequate for a population of 167 million people.

To start with, to have a fighting chance of surviving our current insecurity mess, Nigeria needs at least one million well-trained and equipped policemen to match the threats of all the militants and kidnappers and armed robbers that have currently declared a war against the Nigerian nation. And if we have any disposable N40 billion, this is one of the projects we should be deploying our minds towards.

A major problem the Jonathan government and all those associated with it face is the trust deficit among Nigerians. The turning point for Nigerians was at the point of the revelations that came out in the wake of the fuel subsidy removal uproar. By the time it was revealed that all those who had hidden under economic principles to support the president’s plan to remove the subsidy were economical with the truth – it was eventually exposed that they knew about the theft of N2.6 trillion in the name of subsidy payments at the time they were heartlessly pontificating on economics – whatever credibility they had collapsed. So, even if they mean well on this idea of spending N40 billion to print the N5,000 note, Nigerians already think the idea is corruption-driven. That is what happens when government people lose credibility. What Nigerians believe is that the idea of the N5,000 note itself is driven principally by the N40 billion. Or, putting it more plainly, what would be made from the N40 billion contract, which many believe will not be less than N10 billion. And this is a very, very conservative estimate.

This corruption narrative of the N5,000 note doesn’t even end there. Many believe that the N5,000 note makes it very easy to share bribes as it is easier to carry. For instance, N2.6 trillion corruption money is easier to carry around in N5,000 notes than it will be in N1,000 notes. And it would be much easier to share bribes to delegates in 2015 in N5,000 notes than the current N1,000 notes. That’s just basic common sense or, as the Americans would say, it’s a no brainer. Well, if the proponents of the N5,000 note want to deny this assertion, then, they should make N5,000 coins instead.

There is nothing that those who want to spend N40 billion to produce N5,000 note will say that will make sense. The world’s biggest economy, the United States, used to have $1,000 and $500 bills but they have gradually been phased out and their current $100 bill is their highest dollar denomination. The distribution of the $1,000 denomination was discontinued in 1964, and the $500 bill in 1969. The reason that was given for stopping these denominations was that they aided drug traffickers in their trade. This would be like saying that the N5,000 denomination will aid corruption and election rigging in Nigeria.

Those who want to produce larger naira denominations in Nigeria are only being clever by half. They should work on the Nigerian economy to gradually phase out the N1,000 and N500 denominations instead, and make the N100 note our highest bill. But they will not. The stakes for them are really quite high.
-Sam Nda Isaiah

oradee:



you obviously dont reside within Nigeria...and by the way,pls take ur tranquilizers before u commment on my post ok!

Answer the question; when you bought your phone or laptop how did you pay?

chamber2:

^^^

If this is how Economists reason in real life then i would rather not study it. What if the same N40b was spent on maybe Agriculture, rural health facilities, education etc wouldn't it have been better? You have obviously lost touch with reality. Where is Soludo's coins after 5yrs of its introduction? Did you know how much that was spent introducing the current N1000 note by soludo and the polymer notes, of what use are they after 5yrs?

Okay, so because "Soludo spent money printing notes", we should stop looking for more and more efficient ways to improve our currency regime? We should not spend money printing notes and spend on agriculture. How will you exchange for your agricultural produce now? Okay, I see, you want us to go back to 'trade by barter' as your forefathers did?

Take this your Matori mentaliy and go back to your shed.

ballabriggs:

That is why you are a mugu. We spend 40billion naira, what of the benefits? Do you analyse costs alone without benefits? That is why we are economists and we look at cost-benefit considerations before reaching a conclusion. Most of the benefits we see are even intangible and we don't expect mugu's like you to see it. Some of you people are really daft beyond repair. GOSH!!! Is this what Nigeria has become, that young people cannot analyse issues critically? If you take ten 1000 naira notes and put it into two 5000naira notes, is that not savings? In terms of handling, minting, storage e.t.c. To the aggregate economy, more efficient transactions. We know your Alaba brain cannot see beyond the money you store under your bed.

At times when people like you talk about inflation, I want to laugh. So if I convert 500naira into coins today, the price of pure water will become 1000naira and 500naira will disappear? Ikeja to Ojodu Berger will become 1000naira? Osodi to Mushin will become 1000naira? Stop this your ignorant analysis.

Nigerians do not feel comfortable with coins, what you have not admitted is that it is a waste on the economy that people don't spend coins.

Change is what we want, enough of the waste on the economy. The main issues that affect the value of the naira you dolts don't even challenge. You focus all your energy on a reform that has no effect on prices and interest rates.

Bros/Madam are you for real? all these vituperation just to prove how knowledgeable you are and how ignorant the rest of us? hmmm...and you are the one analyzing issues critically? Pls read through @chambers2 and tell us what new economic theory you have been able to postulate to counter his sound argument.
(I just want to believe that your likes have lost touch with the realities in Nigeria). This policy is designed to simply help the rich and further impoverish the poor, can't seem to know how else to explain this to you with you vast knowledge of economics without receiving invective from you as you threw at chambers2.

Why not use your economic acumen to advise CBN to logically, methodically pursue the cashless policy to a desired end first. that way cost will be reduced and efficiency will be brought to bear on our economy. What is the opportunity cost of this CURE programme, should it be our priority as a nation now? are there no better alternative?(in view of the backlash from the citizenry), these are the questions that bothers us sir/ma

[quote author=Odunnu]How does this thrash even sound in their ears?
'you can reject' a legal tender?
*smh*
We were compelled to take the coins, now we can reject the note.
indeed dis guys r confuse

Olu_Bendel:


Bros/Madam are you for real? all these vituperation just to prove how knowledgeable you are and how ignorant the rest of us? hmmm...and you are the one analyzing issues critically? Pls read through @chambers2 and tell us what new economic theory you have been able to postulate to counter his sound argument.
(I just want to believe that your likes have lost touch with the realities in Nigeria). This policy is designed to simply help the rich and further impoverish the poor, can't seem to know how else to explain this to you with you vast knowledge of economics without receiving invective from you as you threw at chambers2.

Why not use your economic acumen to advise CBN to logically, methodically pursue the cashless policy to a desired end first. that way cost will be reduced and efficiency will be brought to bear on our economy. What is the opportunity cost of this CURE programme, should it be our priority as a nation now? are there no better alternative?(in view of the backlash from the citizenry), these are the questions that bothers us sir/ma

Mr Man your grammar is too plenty

When I pay you [/b]N50,000 for developing my website and give [b]you the whole payment in N5000 notes, please refuse it and accept only N200 notes.

Likewise Mr Keke Marwa, when your passengers pay you with N20 coins, please refuse to accept it, insist on them giving you torn and dirty N20 notes.

faithin9ja:

That's problem with Nigerian youth today, jump on a bandwagon without understanding the issues. For your information I reside in Nigeria and do business in both Nigeria and other countries, including Ghana, Uk and US. I have bank accounts in Nigeria, Ghana and UK. I also employ people in Nigeria and pay salaries.

Instead of thinking of how we will increase the income of Nigerians you are thinking that pieces of paper are the problem, or how many 'zeroes' behind a currency. Anyway I can't blame you, I blame IBB for his failed education policies because many of the those who graduating after 1993 are just brain washed poorly educated, pastor chasing follow follow. Anything your pastor or Iman talk is all you do. Think for yourself young man. You can still find the 10 kobo coin minted 40 years ago, where are notes made 3 years ago?

You can easily spare us your elderly advise and information on the countries you've been to....doesn't make you a wise man or an authority on economic issues.(Half of you so called rich in Nigeria are just stark illiterates with stolen public funds).
Security is still a major challenge.....power....road....educationad almost all sectors are collapsing and the next best thing that can happen to the COUNTRY is this debatable 5000 naira note.
In all your various sojourns....it is well know that it is only Nigerians that spend cash in abroad. Haven't bought anything over a 1000$ with cash before in the US. What's the idea behind the cashless policy if we are still rolling out 5000 naira notes? Thought that was the reason behind the cashless policy? Less cash so as to have money trails and to monitor all these corrupt politicians and heartless businessmen.
And you can ask yourself what happened to our 5k and 10k coins that were introduced and even the 5naira notes self.
The 40billion should be used to fight corruption and build infrastructures and probably to remove nitwits like you who hide behind the anonymosity of social networks to proliferate garbage out of their mouth and still have the audacity to challenge right thinking people calling them 'youths'. Mtschewww

infolekan:

You can easily spare us your elderly advise and information on the countries you've been to....doesn't make you a wise man or an authority on economic issues.(Half of you so called rich in Nigeria are just stark illiterates with stolen public funds).
Security is still a major challenge.....power....road....educationad almost all sectors are collapsing and the next best thing that can happen to the COUNTRY is this debatable 5000 naira note.
In all your various sojourns....it is well know that it is only Nigerians that spend cash in abroad. Haven't bought anything over a 1000$ with cash before in the US. What's the idea behind the cashless policy if we are still rolling out 5000 naira notes? Thought that was the reason behind the cashless policy? Less cash so as to have money trails and to monitor all these corrupt politicians and heartless businessmen.
And you can ask yourself what happened to our 5k and 10k coins that were introduced and even the 5naira notes self.
The 40billion should be used to fight corruption and build infrastructures and probably to remove nitwits like you who hide behind the anonymosity of social networks to proliferate garbage out of their mouth and still have the audacity to challenge right thinking people calling them 'youths'. Mtschewww

Actually I have never had a government contract in my live, i never worked for any Nigerian company or Nigerian government. I am infact a trader. And you are right when I am in UK or US I hardly pay for anything over even $100 in cash, in recent years I use my Nigerian issued Fidelity Bank Visa card (naira account oh!!! not dom account). I use this Nigerian card all over UK even to buy fuel of £20 (N5200). I actually feel proud to use a Nigerian bank card like this.

I hate it in Nigeria that just to pay for Mr Biggs with my family on a Sunday afternoon I have to bring out a bundle of notes to pay out just maybe N7500.

I also enter Keke Marwa and Okada near my business premises, I would willing pay these people with coins if coins were available.

We should concentrate on the real problem in Nigeria, ie income of the people - not the unit of currency. Ghana removed 'zeroes' from their currency, it did not suddenly make everybody richer, just easier to conduct business. The cedi did not gain in international value because zeroes were removed from the back of it.

infolekan:

You can easily spare us your elderly advise and information on the countries you've been to....doesn't make you a wise man or an authority on economic issues.(Half of you so called rich in Nigeria are just stark illiterates with stolen public funds).
Security is still a major challenge.....power....road....educationad almost all sectors are collapsing and the next best thing that can happen to the COUNTRY is this debatable 5000 naira note.
In all your various sojourns....it is well know that it is only Nigerians that spend cash in abroad. Haven't bought anything over a 1000$ with cash before in the US. What's the idea behind the cashless policy if we are still rolling out 5000 naira notes? Thought that was the reason behind the cashless policy? Less cash so as to have money trails and to monitor all these corrupt politicians and heartless businessmen.
And you can ask yourself what happened to our 5k and 10k coins that were introduced and even the 5naira notes self.
The 40billion should be used to fight corruption and build infrastructures and probably to remove nitwits like you who hide behind the anonymosity of social networks to proliferate garbage out of their mouth and still have the audacity to challenge right thinking people calling them 'youths'. Mtschewww

So because security is a challenge, the CBN should not focus on its function of improving the currency regime? Honestly, are you for real? The CBN should also stop its banking supervision role because there are security challenges. The fact that there is a robust e-payment system in the UK, has it stopped them from minting 50 pounds notes? Has it stopped them from minting 20 pounds notes which exceeds the 5000 naira in real terms?

why do you guys all missing the 'point'?

Badluck needs money, loads of money for 2015!!!

This is avenue to get those money.

If truly the Malam and the badluck are honest, the cashless policy should have be allowed to run it course first!!!

ballabriggs:

Okay, so because "Soludo spent money printing notes", we should stop looking for more and more efficient ways to improve our currency regime? We should not spend money printing notes and spend on agriculture. How will you exchange for your agricultural produce now? Okay, I see, you want us to go back to 'trade by barter' as your forefathers did?

Take this your Matori mentaliy and go back to your shed.

^^^

Your line of thinking is prevalent among govt officials, i wouldn't be surprised if you are one. Just because one policy favours you doesn't necessarily mean it will be in the best interest of the others.Sir, nobody said the CBN shouldn't engage in currency management activities. When soludo came he vigorously pursued a currency restructuring initiative; changing the wordings in the currency, introduced coins, polymer and finally printed the N1000 note. That was about 5yrs ago. Until now Nigerians are yet to feel the impact of such frivolous exercise. Why then are we in a haste to introduce a new currency? Aside the issue of convenience, and efficiency what other benefits do we stand to gain from this initiative? Remember, the cashless policy was designed to address the issue of cost, efficiency, convenience etc. So why the N5000 note, at least at this point when we can barely finance the power sector challenges?

One would therefore expect the current CBN governor to pay more attention to the cashless policy initiative rather spending over N40b to introduce a new currency. After-all, the both have similar objective- which is cost reduction and efficiency. The cash policy will reduce the volume of cash transactions, reduce cost both on the part of the CBN, banks and populace. It will also encourage the use of coins through the establishment of facilities that will enhance its use. You don't put the cart before the horse.

chamber2:


^^^

Your line of thinking is prevalent among govt officials, i wouldn't be surprised if you are one. Just because one policy favours you doesn't necessarily mean it will be in the best interest of the others.Sir, nobody said the CBN shouldn't engage in currency management activities. When soludo came he vigorously pursued a currency restructuring initiative; changing the wordings in the currency, introduced coins, polymer and finally printed the N1000 note. That was about 5yrs ago. Until now Nigerians are yet to feel the impact of such frivolous exercise. Why then are we in a haste to introduce a new currency? Aside the issue of convenience, and efficiency what other benefits do we stand to gain from this initiative? Remember, the cashless policy was designed to address the issue of cost, efficiency, convenience etc. So why the N5000 note, at least at this point when we can barely finance the power sector challenges?

One would therefore expect the current CBN governor to pay more attention to the cashless policy initiative rather spending over N40b to introduce a new currency. After-all, the both have similar objective- which is cost reduction and efficiency. The cash policy will reduce the volume of cash transactions, reduce cost both on the part of the CBN, banks and populace. It will also encourage the use of coins through the establishment of facilities that will enhance its use. You don't put the cart before the horse.

You guys are just prejuidiced. Also anyone who has an opinion different from yours does not mean this person is a goevernment stooge.

Cashless, coins and N5000 note can all work together.

In UK you can use coins to pay, £1 is a coin but this buys almost exactly what N200 - N300 buys in Nigeria, eg a bus fare or soft drink, you can use your debit card at POS points in nearly every shop and finally you can also use notes up to £50 (N13000) to buy things, the most common note is £20 (N5200).

In Nigeria to spend N5000 in one place is very easy, why should we not pay with N5000 note, also I LIKE to use N10 coin to buy pure water, it's easier for me than looking for those dirty notes.

If there is POS (as I have in MY shop) then I will use my debit card. Shikena!!

Are you aware that politicians store money in septic tanks these days?
My take on this is, let CBN mint 5,000 in coins instead.Maybe just maybe it would serve our politicians purpose.Sanusi must resent intensely being told that he is "the Chosen One". It is such an obvious man-trap; it is the commonest delusion of the maniac and, in one form or another, the essence of all his delusions.

ballabriggs:
This is the most bizarre and stupid argument I have heard on this issue. Now one of the biggest ways of financing crime and money laundering is through international trade, foreign capital flows and international banking. Should we then stop trading with other nations because it "promotes money laundering"? Should we also stop electronic transactions because it also promotes money laundering and thus ignore the benefits of millions in diaspora who use it to support relatives at home? Bottom line is, every innovation in finance is a source of crime but we cannot ignore the benefits because we want to keep living like cave men as the NBA would want.

The new currency regime would promote efficiency of transactions, save cost for the system and should be implemented. I have coins with me minted in 1982, now show me any Nigerian currency minted in 2000 or even 2006. It's either been fixed with cello-tapes or it is no more. There is no reason why transactions at the low end where there is a high velocity should be done in cash, it is a waste. For an environmentalist, this is a crime on ecoversity as trees are being cut to make these notes.

faithin9ja:

Answer the question; when you bought your phone or laptop how did you pay?

the same way i pay my okada/keke/BRT/danfo/bread/sweets/manicure&pedicure/hair cut/cinema tickets/fast food meals...etc (does that answer ur Q?)

so now that ive answered u,shld i start using N5000 notes to pay for them henceforth?

as i said,i wld support u and ur arguement if the N5000 is printed in COINS or are u gonna argue why N5000 cant be printed in coins?

faithin9ja:


Actually I have never had a government contract in my live, i never worked for any Nigerian company or Nigerian government. I am infact a trader. And you are right when I am in UK or US I hardly pay for anything over even $100 in cash, in recent years I use my Nigerian issued Fidelity Bank Visa card (naira account oh!!! not dom account). I use this Nigerian card all over UK even to buy fuel of £20 (N5200). I actually feel proud to use a Nigerian bank card like this.

I hate it in Nigeria that just to pay for Mr Biggs with my family on a Sunday afternoon I have to bring out a bundle of notes to pay out just maybe N7500.

I also enter Keke Marwa and Okada near my business premises, I would willing pay these people with coins if coins were available.

We should concentrate on the real problem in Nigeria, ie income of the people - not the unit of currency. Ghana removed 'zeroes' from their currency, it did not suddenly make everybody richer, just easier to conduct business. The cedi did not gain in international value because zeroes were removed from the back of it.

in favor of ur argument, since u seem to have toured the globe,i wanna ask why hasnt the Bank of America printed $5000 notes since it wld be cheaper and convenient for business transactions...after all that's where we go to study the economics we are applying. (and pls dont tell me about the value of their dollar wldnt allow it)

infolekan: 5,000 Note

I don’t give a damn whether N5,000 note is introduced or not. Only those who are likely to benefit from the booty would give a damn. I don’t see how the introduction will improve my personal economy or that of the nation. None of the proponents of the introduction of the N5,000 note starting from the Central Bank of Nigeria (CBN) to the highest echelons of Aso Rock has even made the case that the introduction of the note will improve the Nigerian economy. Not one of them! The only thing I have seen so far is a desperate defensive posture to whatever well-meaning people say. They keep telling us that the introduction of the note will not cause inflation. OK, fine; will it reduce inflation? Or strengthen the value of the naira? Or turn the naira into a convertible currency? So what boost will this move give the Nigerian economy to warrant this desperation to spend a princely N40 billion on its production?

If we have N40 billion disposable fund as a nation at this critical time, it is hardly on such trifle idea that we should be spending that kind of money. In spite of all the talk and promises, the nation’s electricity problem has actually worsened since Jonathan took over power. Our obsolescent infrastructure begs for heavy investment: it has been estimated that Nigeria needs an investment of $10 billion yearly over the next 10 years in order to join the modern world. We still have no transportation system and our refining capacity, for a nation of 167 million people, has become a joke, as we now rely on countries like Niger Republic for our fuel needs.

The most intractable issue of our time is the current security challenge. The entire nation has been taken over by hoodlums because our police are ill-equipped and poorly funded. In the last three years, the police have not received up to 20 per cent of their approved budgets and we only need to compare the quality of weapons used by our police with those of Boko Haram or the Niger Delta militants or even armed robbers – who, these days, use grenades to rob banks – to know that Nigeria doesn’t stand a chance. So, if we have N40 billion to spend, it will certainly not be to print fancy N5,000 notes. Our current police strength of about 360,000 is scandalously inadequate for a population of 167 million people.

To start with, to have a fighting chance of surviving our current insecurity mess, Nigeria needs at least one million well-trained and equipped policemen to match the threats of all the militants and kidnappers and armed robbers that have currently declared a war against the Nigerian nation. And if we have any disposable N40 billion, this is one of the projects we should be deploying our minds towards.

A major problem the Jonathan government and all those associated with it face is the trust deficit among Nigerians. The turning point for Nigerians was at the point of the revelations that came out in the wake of the fuel subsidy removal uproar. By the time it was revealed that all those who had hidden under economic principles to support the president’s plan to remove the subsidy were economical with the truth – it was eventually exposed that they knew about the theft of N2.6 trillion in the name of subsidy payments at the time they were heartlessly pontificating on economics – whatever credibility they had collapsed. So, even if they mean well on this idea of spending N40 billion to print the N5,000 note, Nigerians already think the idea is corruption-driven. That is what happens when government people lose credibility. What Nigerians believe is that the idea of the N5,000 note itself is driven principally by the N40 billion. Or, putting it more plainly, what would be made from the N40 billion contract, which many believe will not be less than N10 billion. And this is a very, very conservative estimate.

This corruption narrative of the N5,000 note doesn’t even end there. Many believe that the N5,000 note makes it very easy to share bribes as it is easier to carry. For instance, N2.6 trillion corruption money is easier to carry around in N5,000 notes than it will be in N1,000 notes. And it would be much easier to share bribes to delegates in 2015 in N5,000 notes than the current N1,000 notes. That’s just basic common sense or, as the Americans would say, it’s a no brainer. Well, if the proponents of the N5,000 note want to deny this assertion, then, they should make N5,000 coins instead.

There is nothing that those who want to spend N40 billion to produce N5,000 note will say that will make sense. The world’s biggest economy, the United States, used to have $1,000 and $500 bills but they have gradually been phased out and their current $100 bill is their highest dollar denomination. The distribution of the $1,000 denomination was discontinued in 1964, and the $500 bill in 1969. The reason that was given for stopping these denominations was that they aided drug traffickers in their trade. This would be like saying that the N5,000 denomination will aid corruption and election rigging in Nigeria.

Those who want to produce larger naira denominations in Nigeria are only being clever by half. They should work on the Nigerian economy to gradually phase out the N1,000 and N500 denominations instead, and make the N100 note our highest bill. But they will not. The stakes for them are really quite high.
-Sam Nda Isaiah

i hope the pro-N5000 note crooners are now economically updated...as Atedo Peterside said, it wld prevent dollar stealing by "Thieves"(but wld encourage the naira version)...N40bn to print rejectable legal tender? *rolling to zimbabwe laughing*

oradee:

the same way i pay my okada/keke/BRT/danfo/bread/sweets/manicure&pedicure/hair cut/cinema tickets/fast food meals...etc (does that answer ur Q?)

so now that ive answered u,shld i start using N5000 notes to pay for them henceforth?

as i said,i wld support u and ur arguement if the N5000 is printed in COINS or are u gonna argue why N5000 cant be printed in coins?

So you feel like a big man when you carry bundles of notes to pay for N100,000 phone or laptop, you like using those dirty torn notes to pay for your Okada

faithin9ja:

Answer the question; when you bought your phone or laptop how did you pay?

POS

oradee:


in favor of ur argument, since u seem to have toured the globe,i wanna ask why hasnt the Bank of America printed $5000 notes since it wld be cheaper and convenient for business transactions...after all that's where we go to study the economics we are applying. (and pls dont tell me about the value of their dollar wldnt allow it)

Bank of America does not issue legal tender in America - the US central bank is the Federal Reserve Bank
$5000 is equal to a second hand car, $5000 is N750,000 is CBN printing N750,000 note?
N5000 note will buy a meal for two in KFC, $100 note will buy a meal for two in KFC.

Ask yourself when last you spent N5000, then ask the American when last he spent $5000 - but the American did spend $100

N5000 equals $75 NOT $5000

faithin9ja:

Bank of America does not issue legal tender in America - the US central bank is the Federal Reserve Bank
$5000 is equal to a second hand car, $5000 is N750,000 is CBN printing N750,000 note?
N5000 note will buy a meal for two in KFC, $100 note will buy a meal for two in KFC.

Ask yourself when last you spent N5000, then ask the American when last he spent $5000 - but the American did spend $100

N5000 equals $75 NOT $5000

I'm willing to bet a vast majority of Americans would pay the 100 dolls with their card not cash.

ballabriggs:

This is the most bizarre and stupid argument I have heard on this issue. Now one of the biggest ways of financing crime and money laundering is through international trade, foreign capital flows and international banking. Should we then stop trading with other nations because it "promotes money laundering"? Should we also stop electronic transactions because it also promotes money laundering and thus ignore the benefits of millions in diaspora who use it to support relatives at home? Bottom line is, every innovation in finance is a source of crime but we cannot ignore the benefits because we want to keep living like cave men as the NBA would want.

The new currency regime would promote efficiency of transactions, save cost for the system and should be implemented. I have coins with me minted in 1982, now show me any Nigerian currency minted in 2000 or even 2006. It's either been fixed with cello-tapes or it is no more. There is no reason why transactions at the low end where there is a high velocity should be done in cash, it is a waste. For an environmentalist, this is a crime on ecoversity as trees are being cut to make these notes.

with all due respect, the sense in this your write up still eludes me no matter how rigorous is my probe.
This is all but a blabber.
Efficiency of transactions?, cost saving?
You - in your superior knowledge - should help my naivety by supplying examples as appropriate.
And if the new note could actually foster international trade as you claimed, then we should all be clamouring for the N10,000 note as well.

NIGERIA! What a Big Joke.. Only God can deliver us from this whole clue-less leaders.

faithin9ja:

So you feel like a big man when you carry bundles of notes to pay for N100,000 phone or laptop, you like using those dirty torn notes to pay for your Okada

so in all fairness and patriotism, u really believe deep within ur heart that the N5000 notes wldnt wear or tear or get squeezed or wrinkled or be sealed wif celo-tape...wow,ur really dont live within Nigeria sha...

faithin9ja:

Bank of America does not issue legal tender in America - the US central bank is the Federal Reserve Bank
$5000 is equal to a second hand car, $5000 is N750,000 is CBN printing N750,000 note?
N5000 note will buy a meal for two in KFC, $100 note will buy a meal for two in KFC.

Ask yourself when last you spent N5000, then ask the American when last he spent $5000 - but the American did spend $100

N5000 equals $75 NOT $5000

The world’s biggest economy, the United States, used to have $1,000 and $500 bills but they have gradually been phased out and their current $100 bill is their highest dollar denomination. The distribution of the $1,000 denomination was discontinued in 1964, and the $500 bill in 1969. The reason that was given for stopping these denominations was that they aided drug traffickers in their trade. This would be like saying that the N5,000 denomination will aid corruption and election rigging in Nigeria.

i doubt if u can explain the highlighted above...the same way Americans see their $1,000 and $500 bills is the same way we Nigerians see our N1000 and N500 notes...its people like you who have devalued the naira in the mind before it takes effect literally.

u argue using coins in '89 but yet u havent explained where Soludo's coins went. u argue N5000 wld make biz easier and cheaper but u havent said how the cashless policy augments the N40bn to be used to print notes that are rejectable but u forget it wld still cost more to transact wif cos divisiblity of money has its cost implications (u print more lower denominations to support its divisibility).

and i did notice ur eluding the point of printing the N5000 in COINS (or isnt it possible)