The National Assembly on Tuesday passed different resolutions asking President Goodluck Jonathan to stop the Central Bank of Nigeria from introducing its controversial N5000 note.

Members of both the Senate and the House of Representatives resumed from their recesses on Tuesday with the controversial plan by the CBN taking the front burner.

While the Senate unanimously adopted a motion urging “The President and to direct the CBN to stop all actions on the issuance of the proposed N5000 note and all matters connected therewith,” the House members directed the apex bank to put the plan on hold for four weeks.

The House also queried the legality of Jonathan’s Economic Management Committee and its competence in approving the currency review plan.

When The PUNCH sought the reaction of the CBN governor, Lamido Sanusi, to the development, he said, “I have no comment.”

CBN action illegal

The Senators said the CBN’s plan to introduce the N5000 note was illegal because Section 4(1 and 2) of the 1999 Constitution and Section 8(2) of the CBN Act of 2007 require the National Assembly to be part of the process of introducing a new currency review.

The resolution arose from a motion by Senator Ita Enang (Akwa Ibom North), asking Sanusi to halt action on the proposed currency.

Leading the debate on the motion, Enang said the Senate was aware of section 18 of the CBN Act, 2007, which conferred on the bank, the power to arrange for the printing of the currency notes and minting of coins among others.

He said the Senate was also aware of section 19 of the Act which allowed the bank to issue denominations and fractions with the approval of the President on the recommendation of the board.

He said, “The power being granted by the Legislature is subject to the supervisory powers of the Legislature which granted or donated the powers under the Act if the exercise of the powers is contrary to good economic conscience and the wellbeing of the people and the national economy.

“The introduction of the said N5000 note and the withdrawal of notes, conversion of some to coins and general redenomination of the naira has the ultimate effect of devaluing the naira, making lower currencies to be coined, almost non-value monies for transactions and subtly yield to the off-demand of certain international financial institutions for the devaluation of our currency.

“Section 4(1 and 2) of the constitution vests the legislative powers of the Federal Republic of Nigeria in the National Assembly to make laws for the peace and good governance of the federation or any part thereof; whereas this policy of the bank on the Naira may not lead to good economic and monetary governance of Nigeria requiring re-examination by the legislature.”

N5000 negates cashless policy

Enang also said that the currency plan negated the the newly introduced cashless transaction policy.

“In cashless economies, high bills or currency notes such as the proposed N5000 is not required as transactions are conducted from the payer to the payee’s accounts without any need for physical exchange or handling of cash by any of the parties.

“The convenience of carrying large amount of cash by way of large denominations now being proposed does not at all arise since large volume transactions as under the Money Laundering Act are to be conducted cashless through bank accounts of the transacting parties.”

Unacceptable to Nigerians

Also speaking, Deputy Leader of the Senate, Abdul Ningi, described the policy as unacceptable to Nigerians and ruled out the need for a public hearing since Nigerians had spoken their minds on the matter very clearly.

Senator Kabiru Gamawa painted a complex picture of what obtained in his senatorial district, saying that at the moment, transactions in N1000 notes are difficult as locals prefer to use other notes.

“We have those who do not accept the N1000 notes in my constituency right now, how much more N5000,” he said.

Chairman of the Senate Committee on Banking, Insurance and other Financial Institutions, Senator Bassey Otu, explained that in embarking on a major currency review, the CBN ought to have consulted with the National Assembly.

He said the new policy was suggestive of a serious problem in the nation’s currency stability and added that the “woeful failure of coinage in 2005 should be a lesson.”

I was not briefed – Mark

President of the Senate, David Mark, said he was not briefed about the proposed currency review.

Mark said, “If Nigerians say that they don’t want anything, I think they deserve to be listened to. I have listened to the arguments of those supporting it. Their arguments are not convincing. They are theoretical and do not address the problems in practical terms.

“The disadvantages of introducing the N5000 far outweigh that of not introducing it. There is no urgent need for us to take this now.”

However, Senator Bashiru Lado,said he had wanted to reject the motion, but superior arguments on floor changed his position.

He said the CBN Governor should be given a fair hearing through the conduct of a public hearing. His request for a public hearing was rejected by a voice vote.

Stop further action

In the House, members mandated the Committee on Banking and Currency to investigate the “planned restructuring of the nation’s currency by the CBN” and submit the report of its finding within four weeks.

Lawmakers therefore directed the CBN to stop further actions on the proposal pending the outcome of the investigation.

In its resolution, which was unanimously endorsed by members, the House also directed the Committee on Banking and Currency to immediately propose an amendment to the CBN Act. The amendment provide that the apex bank must seek the approval of the National Assembly before the bank could take any decisions on currency denominations.

The motion was sponsored by the Chairman, House Committee on Rules/Business, Mr. Albert Sam-Tsokwa, and 20 other members.

Bank’s arrogance

Leading debate on the matter, Sam-Tsokwa expressed surprise at the “arrogance” of the apex bank in the handling of the proposal “in spite of the fact that majority of Nigerians are against it.”

Sam-Tsokwa admitted that though the bank had “awesome” powers under its Act, the House expected it to exercise such powers “in circumspect and to the best interest of good governance of the country.”

He stated that it was difficult to convince Nigerians that the N5000 note would complement the cashless policy.

What’s EMT?

Supporting the views of Sam-Tsokwa, the Minority Leader, Mr. Femi Gbajabiamila, observed that “a body unknown to law, the Economic Management Team,” had approved the N5000 note.

He added, “This body is said to have approved the introduction of this note (N5000). The EMT was created by presidential fiat and it has no legal status.

“Under the 1999 Constitution, we all know that it is only the National Economic Council that is empowered to advise the President on economic matters.

“Now, the EMT has taken over the duty of the NEC. I have not heard that the NEC met to discuss the N5000 denomination.

“I call on Mr. President to convene a meeting of this council and table this issue for deliberations.”

He observed that the National Assembly boxed itself to a corner when it “delegated” its power to determine currency denomination to the CBN.

Deceitful economists

The Chairman, House Committee on Power, Mr. Patrick Ikhariale, accused government of relying on the analyses of “so-called economists” to endorse the CBN proposal.

“These people are misleading Nigerians by comparing this policy with the case of the United States.

“But, they fail to tell the truth that in the US, only the $100 bill has been used in transactions since 1969.

“Any attempt to allow the N5000 note into our economy will lead to genocide and economic sabotage,” Ikhariale stated.

http://www.punchng.com/news/senators-reps-tear-n5000-note-into-pieces-ask-jonathan-to-stop-cbn-governor/

I’m in total support of Sanusi on N5000 note, if you like it use it and if you don’t,don't use ,why make a mountain out of a molehill.
The CBN never said it is a must for every Nigerian to use it.

I know the National Assembly just want to get their own pound of flesh back after the revelation(after he revealed that they spent 25 percent of the federal budget).If they knew they were powerful they shouldnt have gone through the president,they should have called SLS himself and instructed him to withraw the 5000 naira agenda

CBN is an independent entity, it is only the decision of the CBN that matters.The CBN team made a recommendation to the presidency,the presidency approved it.


Even the national assembly know that this is not a battle they can win,they are just [size=18pt]ranting[/size],so that Nigerians will be able to praise them(Trust me after four weeks all this hullabaloo will be over and the CBN can then proceed).It is not enough to ask that the CBN should stop the introduction of N5000 notes, they must go ahead and give sound and verifiable reasons.

Although one can't help suspect ulterior motives, The House is very right and have brought good arguments against it. Its high time they review the powers of the CBN and amend it

k2039: I’m in total support of Sanusi on N5000 note, if you like it use it and if you don’t,don't use ,why make a mountain out of a molehill.

The CBN never said it is a must for every Nigerian to use it

what type of leader forces his will on the populace without taking their cries and opinions into consideration? Is this not autocratic? The Nigerian people have a say on how they live their lives and how they spend their money. If they say they don't want it, leave them be. You can't impose your will to the detriment of the majority just so your selfish theories can come into reality

So before Lamido Sanusi and the CBN set the exchange rate, the MPR and apply monetary policy tools or even decide which assets to hold reserves, they must inform the Senate. How ridiculous, these are the things that affect the value of the naira if not applied appropriately and optimally and not the currency reform.

The Senators should quit using the Senate to fight an ego war. We know the National Assembly is a huge joke but this seems to have gone too far. The things that truly devalue the naira is not being focused on.

A National Assembly veto's a budget with a huge deficit, with their salaries forming a huge part of this and then we have to finance this deficit by borrowing and the same National Assembly expects the naira's value to rise? This is a big joke.

One thing is certain, if SLS and the CBN do not reform the currency today, someone else will attempt it. The currency regime as we have it today is a total waste on the system.

Ryabcool: what type of leader forces his will on the populace without taking their cries and opinions into consideration? Is this not autocratic? The Nigerian people have a say on how they live their lives and how they spend their money. If they say they don't want it, leave them be. You can't impose your will to the detriment of the majority just so your selfish theories can come into reality

“The masses have never thirsted after truth. Whoever can supply them with illusions is easily their master; whoever attempts to destroy their illusions is always their victim.”

k2039:

“The masses have never thirsted after truth. Whoever can supply them with illusions is easily their master; whoever attempts to destroy their illusions is always their victim.”

but still, it is their opinion and right. Let them have have they want.

I was telling somebody that the NA has no such powers under the constitution to stop the CBN from this action and they said i am ignorant. It remains good politics to carry Nigerians along, NA inclusive but not a prerequisite.
The NA will be shooting herself on the foot with any action aimed at reducing the powers of the CBN because this is a very technical area that need expertise and information, not necessarily popularity to handle.
Now, few questions for the NA. Monetary policy formulation and naira redenomination, which affects Nigerians more? MPR, exchange rate, inflation and other indices that the CBN manages are far more profound than Naira redenomination. If you are courageous enough to grant the CBN powers to handle these other issues, what then is currency redenomination?
I never supported Sanusi's appointment as CBN governor mainly because i feel that a B.Sc in Economics holder with 15 years banking experience is not qualified enough in a gifted country like Nigeria to manage multi-billion dollar economic monetary policy but the NA felt otherwise.
My advice to the NA, democracy runs on laws not arbitrariness. You confirmed Sanusi as CBN governor, let him do his job!

Ryabcool: but still, it is their opinion and right. Let them have have they want.

It is their opinion and right abi? If I tell you and those "masses" today that I want to fix the naira at 20 naira to a dollar, the masses will praise me. Why not, of course cheaper foreign exchange and cheaper imports.

However, it will be a disaster for the economy as the reserves will run out within a month.

So are the "masses" always right?

It is about issues and policies and not the "masses".

ballabriggs:

It is their opinion and right abi? If I tell you and those "masses" today that I want to fix the naira at 20 naira to a dollar, the masses will praise me. Why not, of course cheaper foreign exchange and cheaper imports.

However, it will be a disaster for the economy as the reserves will run out within a month.

So are the "masses" always right?

It is about issues and policies and not the "masses".

then you're suggesting the naira should be devalued further still? Leave the naira the way it is. That is what the populace is asking for. They are not asking for the revaluation of the naira

Ryabcool: then you're suggesting the naira should be devalued further still? Leave the naira the way it is. That is what the populace is asking for. They are not asking for the revaluation of the naira

Devaluation could be good and could also be bad. The same way revaluing a currency could be good and also be bad.

The point is, it is not about what the masses think. It is about what is best for an economy at a particular point in time.

ballabriggs: So before Lamido Sanusi and the CBN set the exchange rate, the MPR and apply monetary policy tools or even decide which assets to hold reserves, they must inform the Senate. How ridiculous, these are the things that affect the value of the naira if not applied appropriately and optimally and not the currency reform.

The Senators should quit using the Senate to fight an ego war. We know the National Assemble is a huge joke but this seems to have gone too far. The things that truly devalue the naira is not being focused on.

A National Assembly veto's a budget with a huge deficit, with their salaries forming a huge part of this and financed by debts and also expects the naira's value to rise? This is a big joke.

One thing is certain, if SLS and the CBN do not reform the currency today, someone else will attempt it. The currency regime as we have it today is a total waste on the system.

Like I wrote here yesterday, in whose interest is the introduction of the N5'000 notes when the country has not even reaped 10% of the tremendous benefits of the cash-less system? Is it not contradictory to improve the portability of the naira (at a cost) and at the same time preach the need to go cash-less (also at a cost). Please note that I understand that the motive of the cash-less is to reduce the volume of cash in circulation as much as possible. This contradiction which I noted above is needless, it is costly, and it is capable of confusing the citizens. Every pragmatic leader tries not to confuse or confound his citizens.

Again, I ask, who are we trying to make it easy for to carry cash around when we have boundless opportunities to deepen cash-less Lagos and extend it to the remaining parts of the country? With a successful cash-less, what would be the rate at which the N5000 notes would move around? A lawmaker even said that his people don't at present accept N1000 notes let alone N5000. Are we trying to make it easier for those who build vaults at homes and stash away their proceeds of graft in N5000 notes? What really is the strong case for the N5000 notes and where are the independent people who are publicly supporting it?


Have we thought of converting the countless traders in Computer Village, Ikeja, Ketu and Oke Arin in Lagos, Kano, Onitsha and Aba? Who are the people that the CBN wants to mint the N5000 notes for? The corrupt? - in order to make bribery easier? The robbers? - in order to make stealing easier? The party goers? - in order to make 'spraying of notes' more ostentatious? We need more trail of spending (as assured by the cash-less scheme) and not less trail which is a fertile avenue for corruption.

The argument against coins is even a non-brainer. The coins that were introduced in 2005 failed woefully and dismally even though banks forced them on their customers. Has Sanusi told us about his findings on how and why those beautiful coins of 2005 failed so dismally? How about the public funds that were spent on the coins that went down the drain?

Nigeria is a funny place, take it or leave it, coins have a way of pushing up prices in Nigeria. Have they told us what they have put in place to ensure that the coins they want to introduce this time around will be a success? Can you confidently tell me that the corrupt policeman would collect his usual bribe in N20 coins? Why are most (if not all) retail prices in Nigeria are round figures? How come there are no items sold with coins on top of the price? Which government organ has researched into this and recommended home-grown solutions?

Let's learn from the past. Let's implement economic policies that take our peculiar environment into consideration. This is why economics is a 'social' science and not a physical science. Any economic policy that does not improve the lives of the people is useless.

On another note, I think it is high time the National Assembly split the current CBN into two - one to regulate the Financial Services industry (banks and all) and the Bank of Nigeria (to focus on monetary policies and currency management). The powers of the current CBN are too wide.

ballabriggs: So before Lamido Sanusi and the CBN set the exchange rate, the MPR and apply monetary policy tools or even decide which assets to hold reserves, they must inform the Senate. How ridiculous, these are the things that affect the value of the naira if not applied appropriately and optimally and not the currency reform.

The Senators should quit using the Senate to fight an ego war. We know the National Assembly is a huge joke but this seems to have gone too far. The things that truly devalue the naira is not being focused on.

A National Assembly veto's a budget with a huge deficit, with their salaries forming a huge part of this and then we have to finance this deficit by borrowing and the same National Assembly expects the naira's value to rise? This is a big joke.

One thing is certain, if SLS and the CBN do not reform the currency today, someone else will attempt it. The currency regime as we have it today is a total waste on the system.

I am for the autonomy of the Central Bank. But you know that the issues of exchange rate, interest rate and external reserves management are not in the same league with currency management (eg new notes and coins) in terms of 'time to market'.

He can sure tarry a while on currency management, consult widely and be advised.

ballabriggs:

It is their opinion and right abi? If I tell you and those "masses" today that I want to fix the naira at 20 naira to a dollar, the masses will praise me. Why not, of course cheaper foreign exchange and cheaper imports.

However, it will be a disaster for the economy as the reserves will run out within a month.

So are the "masses" always right?

It is about issues and policies and not the "masses".

The exchange rate example you gave is a good one and the consequence which you noted is correct. Yes, the masses are not always right, but as stakeholders, they have the right to get agitated and apprehensive on whatever policies they believe would affect them, adversely for that matter.

This is why the government needs to massively educate and orientate them instead of forcing things down their throats. Of what benefit it is for a politician to win a policy argument but lose the people?

In conclusion, it is true that the masses are not always right. It is also true that the masses are not always wrong.

Pukkah:

Like I wrote here yesterday, in whose interest is the introduction of the N5'000 notes when the country has not even reaped 10% of the tremendous benefits of the cash-less system? Is it not contradictory to improve the portability of the naira (at a cost) and at the same time preach the need to go cash-less (also at a cost). Please note that I understand that the motive of the cash-less is to reduce the volume of cash in circulation as much as possible. This contradiction which I noted above is needless, it is costly, and it is capable of confusing the citizens. Every pragmatic leader tries not to confuse or confound his citizens.

Again, I ask, who are we trying to make it easy for to carry cash around when we have boundless opportunities to deepen cash-less Lagos and extend it to the remaining parts of the country? With a successful cash-less, what would be the rate at which the N5000 notes would move around? A lawmaker even said that his people don't at present accept N1000 notes let alone N5000. Are we trying to make it easier for those who build vaults at homes and stash away their proceeds of graft in N5000 notes? What really is the strong case for the N5000 notes and where are the independent people who are publicly supporting it?


Have we thought of converting the countless traders in Computer Village, Ikeja, Ketu and Oke Arin in Lagos, Kano, Onitsha and Aba? Who are the people that the CBN wants to mint the N5000 notes for? The corrupt? - in order to make bribery easier? The robbers? - in order to make stealing easier? The party goers? - in order to make 'spraying of notes' more ostentatious? We need more trail of spending (as assured by the cash-less scheme) and not less trail which is a fertile avenue for corruption.

The argument against coins is even a non-brainer. The coins that were introduced in 2005 failed woefully and dismally even though banks forced them on their customers. Has Sanusi told us about his findings on how and why those beautiful coins of 2005 failed so dismally? How about the public funds that were spent on the coins that went down the drain?

Nigeria is a funny place, take it or leave it, coins have a way of pushing up prices in Nigeria. Have they told us what they have put in place to ensure that the coins they want to introduce this time around will be a success? Can you confidently tell me that the corrupt policeman would collect his usual bribe in N20 coins? Why are most (if not all) retail prices in Nigeria are round figures? How come there are no items sold with coins on top of the price? Which government organ has researched into this and recommended home-grown solutions?

Let's learn from the past. Let's implement economic policies that take our peculiar environment into consideration. This is why economics is a 'social' science and not a physical science. Any economic policy that does not improve the lives of the people is useless.

On another note, I think it is high time the National Assembly split the current CBN into two - one to regulate the Financial Services industry (banks and all) and the Bank of Nigeria (to focus on monetary policies and currency management). The powers of the current CBN are too wide.

Firstly, to say printing of a higher denomination and the cash-less initiative is contradictory is not right. Both initiatives complement each other. What the higher bills does just like the cash-less initiative is to reduce the number of notes in circulation. Take five of those 1000 naira notes and put into one note. It is less handling cost, less storage cost and less cost to mint the notes for the CBN and the economy on the whole. When you say costly, I don't know what you mean. Do you negate the potential savings to the economy? It is about cost-benefit and not costs alone.

Secondly to say higher bills will promote crime is one of the worst argument I have heard about this issue. The truth is, every initiative in finance is a room for criminal activities. Do we then let such criminals hold us from doing what is right? I will give you an example, Foreign Direct Investments is a very viable means of development finance. However, this same FDI is known to be one of the major ways of financing International crime. Do we then do away with FDIs because it promotes criminal activities thus negating the benefits for development?


On coins, I have heard the argument that Nigerians don't like using coins. However, I have not heard the same people say not using coins is a total waste on the economy. I have coins here minted in 1982, now show me any Nigerian currency minted in 2000. That is a waste for the system. The truth is transactions at the low end with a high velocity should be done with coins to prevent the wear of notes and thus save the economy money. Nigerians used coins in the past, I used coins in my early days, so the question should be what happened and not Nigerians don't like using coins. I have been shopping with a friend who gave the attendant 2p and 1p coins for payment and she laughed over it when we left saying, "I gave him all my change". The truth is, no one likes using coins even in Europe but you just have to use it.

I have asked those who argue that making those lower denominations into coins will cause "pure water to increase to 50 naira" this question, "If I turn 500 naira notes into coins, will the price of pure water become 1000 naira"? However, I am yet to get any meaningful response. If you cannot prove that the minimum goods in the market will rise to this price, then how did you arrive at a conclusion on the causality between coinage and inflation.

On splitting the current CBN. Let us not forget the added bureaucracy that comes with setting more departments to run the affairs of the financial system. Even in England, there are plans to abolish the FSA which was formed in 2001 and transfer some of its roles back to the Bank of England. The truth is banks have a major impact on the monetary environment and should thus be regulated by those who make these monetary policies.

Pukkah:

The exchange rate example you gave is a good one and the consequence which you noted is correct. Yes, the masses are not always right, but as stakeholders, they have the right to get agitated and apprehensive on whatever policies they believe would affect them, adversely for that matter.

This is why the government needs to massively educate and orientate them instead of forcing things down their throats. Of what benefit it is for a politician to win a policy argument but lose the people?

In conclusion, it is true that the masses are not always right. It is also true that the masses are not always wrong.

Thank you very much.

You may have read, Chinua Achebe's, "A man of the people". If you have not read that book, I advice you read it. I advice everyone also reads that wonderful Achebe classic. It was written in 1966 but depicts and is still relevant to the Nigeria we all live in today.

Bottom line is, some of the decisions that need to be made to move Nigeria forward are very difficult decisions that the people will not agree with today. However, it must be done if the country is to move forward.

The National Assembly people have started again with their useless populist nonsense. The only reason they are doing this is so that they can get on the front pages of the press and be portrayed as fighting for the common man while actually doing nothing for him. They've turned this non-issue into a big deal, while there are so many more important problems that are being slid under the table.

Right now, junior health workers in teaching hospitals nationwide are on strike to protest the government's recent massive income tax increase which has laid waste to their take-home pay. Did the NA oppose the tax bill when it was presented to them? Did they discuss it for any significant length of time? Did they even bother to draw people's attention to it so they knew what was coming? The answer to all these is no. They passed the bill quietly and in double time. There was no significant opposition to it even though it wipes out people's disposable income, pushes more families into poverty and directly harms the economy.

The increase in my own personal income tax amounts to 20% of my take-home pay. And that is just the increase, not the total tax. Plus I'm being told that I owe the government over 1 year of arrears. And all that money goes directly into paying jumbo allowances for these useless parasites (who incidentally are not affected by the tax increase).

Fighting for the common man my áss.

k2039: I’m in total support of Sanusi on N5000 note, if you like it use it and if you don’t,don't use ,why make a mountain out of a molehill.
The CBN never said it is a must for every Nigerian to use it.

I know the National Assembly just want to get their own pound of flesh back after the revelation(after he revealed that they spent 25 percent of the federal budget).If they knew they were powerful they shouldnt have gone through the president,they should have called SLS himself and instructed him to withraw the 5000 naira agenda

CBN is an independent entity, it is only the decision of the CBN that matters.The CBN team made a recommendation to the presidency,the presidency approved it.


Even the national assembly know that this is not a battle they can win,they are just [size=18pt]ranting[/size],so that Nigerians will be able to praise them(Trust me after four weeks all this hullabaloo will be over and the CBN can then proceed).It is not enough to ask that the CBN should stop the introduction of N5000 notes, they must go ahead and give sound and verifiable reasons.

u r as foolish as sanusi.......Go to hell and rot....Idiot

ballabriggs:

Firstly, to say printing of a higher denomination and the cash-less initiative is contradictory is not right. Both initiatives complement each other. What the higher bills does just like the cash-less initiative is to reduce the number of notes in circulation. Take five of those 1000 naira notes and put into one note. It is less handling cost, less storage cost and less cost to mint the notes for the CBN and the economy on the whole. When you say costly, I don't know what you mean. Do you negate the potential savings to the economy? It is about cost-benefit and not costs alone.

Secondly to say higher bills will promote crime is one of the worst argument I have heard about this issue. The truth is, every initiative in finance is a room for criminal activities. Do we then let such criminals hold us from doing what is right? I will give you an example, Foreign Direct Investments is a very viable means of development finance. However, this same FDI is known to be one of the major ways of financing International crime. Do we then do away with FDIs because it promotes criminal activities thus negating the benefits for development?


On coins, I have heard the argument that Nigerians don't like using coins. However, I have not heard the same people say not using coins is a total waste on the economy. I have coins here minted in 1982, now show me any Nigerian currency minted in 2000. That is a waste for the system. The truth is transactions at the low end with a high velocity should be done with coins to prevent the wear of notes and thus save the economy money. Nigerians used coins in the past, I used coins in my early days, so the question should be what happened and not Nigerians don't like using coins. I have been shopping with a friend who gave the attendant 2p and 1p coins for payment and she laughed over it when we left saying, "I gave him all my change". The truth is, no one likes using coins even in Europe but you just have to use it.

I have asked those who argue that making those lower denominations into coins will cause "pure water to increase to 50 naira" this question, "If I turn 500 naira notes into coins, will the price of pure water become 1000 naira"? However, I am yet to get any meaningful response. If you cannot prove that the minimum goods in the market will rise to this price, then how did you arrive at a conclusion on the causality between coinage and inflation.

On splitting the current CBN. Let us not forget the added bureaucracy that comes with setting more departments to run the affairs of the financial system. Even in England, there are plans to abolish the FSA which was formed in 2001 and transfer some of its roles back to the Bank of England. The truth is banks have a major impact on the monetary environment and should thus be regulated by those who make these monetary policies.

You are right about how high bills can reduce handling costs of currency. Furthermore, it will also reduce the space needs for storage of cash. I agree.

But realistically, how many people out there employ high bills for transactionary purposes out? If the CBN pursues the cash-less scheme very vigorously to the extent that over 90% of supermarkets, hospitals, markets, filling stations, schools, PHCN offices, restaurants, luxury or inter-state buses, hotels, and even small shops across Nigeria have POSes; also, let all payment of bills be online. In a situation like this, how many people would actually NEED high bills? Would any honest business person or citizen bother about the poor portability of the naira in such a case?

In fact, I expect the banks and the CBN to slash POS transaction charges in order to give fillip to the cash-less scheme and also educate people massively. After that they may now introduce the issue of acceptability of coins in whatever currency.

One needs patience and tact to deal with human beings and not just simple or raw logic. What if your logic is right but you don't win with the people? What kind of economics is that?

k2039:

“The masses have never thirsted after truth. Whoever can supply them with illusions is easily their master; whoever attempts to destroy their illusions is always their victim.”

we are in democracy. i know it is not defined as the govt of the people(masses) by the elite(powerful or truthful as u said)for the people(masses).
why is there too much Autocratic measure in our democracy?

Caesar1988: u r as foolish as sanusi.......Go to hell and rot....Idiot

I thought that by age 23,you should be matured and more sensible but I realised I was wrong.

And please what constituency is that where 1,000 naira note is not accepted? Mbok, there is no need to lie to drive home a point...Senator Ita take note

I think people are trying hard to export their personal tendency to micromanage others to the national sphere. I believe in Democracy very strongly and even more strongly, in its ability to bring about order and my idea of civilization.
Somebody was nominated to do a job. You screened him and found him qualified to be at the helm of the CBN for 5 years. 4 years into his mandate, while executing his assignments in line with his job description, you come up to say that the very tool you gave him to work with is not 'popular' I keep wondering, was his job to take popular decisions or to take necessary decisions?
Let this guy do his job so that you can have the moral authority to say whether he has done well or not at the end of his tenure. To me, this is Democracy. Democracy should be patient, atleast for every 4 years and 5 years in the case of Sanusi. DO NOT MICROMANAGE people when you trust them enough to do a job.

All the post na big big grammarious post everywhere....

Frank-C:
I think people are trying hard to export their personal tendency to micromanage others to the national sphere. I believe in Democracy very strongly and even more strongly, in its ability to bring about order and my idea of civilization.
Somebody was nominated to do a job. You screened him and found him qualified to be at the helm of the CBN for 5 years. 4 years into his mandate, while executing his assignments in line with his job description, you come up to say that the very tool you gave him to work with is not 'popular' I keep wondering, was his job to take popular decisions or to take necessary decisions?
Let this guy do his job so that you can have the moral authority to say whether he has done well or not at the end of his tenure. To me, this is Democracy. Democracy should be patient, atleast for every 4 years and 5 years in the case of Sanusi. DO NOT MICROMANAGE people when you trust them enough to do a job.

I disagree with you. What we are telling Sanusi about the coins and the N5000 notes does not in any way amount to micromanaging. There is no man in the world that is not susceptible to errors of judgement or mistakes. This is why no man should have wide powers that nobody can check or control. Or is there such a man you know anywhere?

Mind you, Sanusi heads a public institution which policies affect the lives of every single Nigerian. Should we keep mute on the policies of such a man/institution just so that it would not be said that we are micromanaging him? Even a private company, from where you possibly got your idea from, still checks its CEO through the Board and the Board is checked by the shareholders at their general meetings.

Sanusi put his foot in his mouth from the haughty and arrogant manner he spoke about the issue of currency management the last time. No one, I repeat, no one has the monopoly of knowledge and economics is not an exact science with precise outcomes.

Just wait and watch, and see what will come out of this debate.

Biggyd2:

When The PUNCH sought the reaction of the CBN governor, Lamido Sanusi, to the development, he said, “I have no comment.”

How the arrogant have been disgraced. Pride definitely comes before a fall. now his wings will be clipped. He made too much noise and sabotaged himself. SMH . Shame to bad people. Sanusi rendered speechless.

Biggyd2:


“These people are misleading Nigerians by comparing this policy with the case of the United States.

“But, they fail to tell the truth that in the US, only the $100 bill has been used in transactions since 1969.

“Any attempt to allow the N5000 note into our economy will lead to [size=14pt]genocide[/size] and economic sabotage,” Ikhariale stated.

http://www.punchng.com/news/senators-reps-tear-n5000-note-into-pieces-ask-jonathan-to-stop-cbn-governor/

choi see desperation!
naija

yes we hate the 5000 bill