ekt_bear:

Yep. I don't think there is evidence for this hypothesis some have.

In this matter, I agree with SLS

Here's how it causes inflation:
The introduction of a higher naira denomination will always reinvent smaller notes like the N20, N10, and N5 as coins. We all know too well how Nigerians 'like' to spend coins and verily verily, in less than a year, all these newly introduced coins will not exist again. The N1, 50kobo and the likes have all gone down the drain because a higher denomination was introduced.

Concisely, the purchasing power of the coins denomination as it has always been the case when new notes are introduced will drop. And lastly, I'm sure you know 'everyday' items like pure water, biscuits for kids, cigarette, chewing gum, tom tom sweets etc are still between N5-N20 because they are the always handy and readily available denominations.

So my friend if there is a fall in the purchasing value of money and a general increase in prices of stuffs, if it is not inflation then I don't know what it's called. And if this SLS is not curbed, we will soon start stacking a ghana-must-go bag with (valueless) naira notes to buy a loaf of bread!

He should focus on strengthening the naira. Gbam.

leaderone: It is rather unfortunate to discover that intellectuals on this forum can be brainwashed by the sweet words of SLS. Let me make this clear, all he has said is TOTAL NONSENSE!!! It is disheartening that a man of SLS pedigree can give such reasons to support the introduction of the N5000 note.

1. It is clear SLS and his CBN do not do research or carry out investigations before coming out with policies and actions that will affect the common man. We Nigerians are by our very nature very resistant to change. Take for example the introduction of ATMs and debit cards. ATMs were introduced more than 10 years ago and we still have to force people to use their debit cards to transact rather than crowd our banking halls. How many of our people have accepted the alternate banking channels that will drive our cashless policy? VERY FEW!!. When the cashless policy was to be introduced SLS cited high cost of handling cash, encouragement of account to account transfers thereby ensuring adeguate transaction trail for audit purposes as some of the reasons... Infact a proven method of ensuring that customers use their debit cards and discourage over the counter payments was to pay customers with very low denominations over the counter and load your ATMs with N1000 notes. Bankers will attest to this! One would expect the same strategy to apply in this cashless area where the fear of payment with very low denominations will force individuals to use the cashless option. It will also be almost impossible for one to accept a bribe of N2,000,000 when it is brought in N50 bills (common sense), or perhaps for a politician to stash N20,000,000 away in N100 bill. Yet SLS is introducing N5000 bills which will create an avenue for corruption(ha! I forgot, SLS says its not his duty to fight corruption!!).

2. It is clear, the SLS and his team just sit in conference rooms, drink Tea and make policies based on assumption or perhaps the little they see at the airport while on their way in and out of the country with a total disregard for the facts on ground. They do not even bother to get honest and practical feedback on steps already taken, their successes and failings because if they do then the following would be very clear

A. The introduction of a higher denomination has always led to the disappearing of a lower denomination that had been turned into a coin. This is evident in the disappearance of the 50kobo and 1naira when higher denominations were introduced.

B. The fact that prices are always rounded off to the nearest note to avoid handling of coins which are just too heavy and cumbersome to carry. Or is he not aware that our bank vaults are currently filled with coins which customers refuse to accept as legal tender?


TO BE CONTINUED......

Nice one but I don't agree with you on this statement... "It is clear SLS and his CBN do not do research or carry out investigations before coming out with policies and actions that will affect the common man". I believe they do research and they know the truth but do you think they care if the policies will affect the common man negatively? Look, behind most policies and every bill or law in Nigeria lies the agenda of the Elites, they consider first how it will affect them and try to manipulate the common people making it look as if it is for the good of the people.

Kay 17

Very daft. Why would the Central Bank put into consideration for its fiscal/monetary policies, how petty traders and bus conductors deal with change??!!

Besides, if ppl increase prices unnecessary with little money around, a deflation might even occu[/b]r.

@^^ Bros, I think you are definitely wrong on the highlighted above. They are very much the main part of the [b]real economy of Nigeria . They are the majority of the buyers sellers and consumers of our "poor"/third world economy hence CASH is indispensable but vital for daily survival. They are Nigerians and in the majority too .
Deflation rarely will happen in an "unsophisticated"/low- tech economy like Nigeria. We do not have good regulatory institutions/mechanisms/tools to control anything within the country let alone human economic activities of the ordinary person on the street. Prices go up and rarely go down in our kind of economy. Please go check out the price of "pure water", roasted plantain, ground nuts, mama put and transportation in our cities/towns against what the prices were pre subsidy removal brou ha ha. Cash is king in Naija and we are not going cashless anytime soon in a place energy and communication are seen as luxury instead of the [b]base [/b]on which a modern/ancient economies are built on.

I just don't see the good in the 5,000 naira note.

If he cares so much about the management costs on banks, what about the effect on an average Nigerian. The human angle is lacking and that, I detest.

[b]I have never liked that CBN governor for one day![/b]He hates to listen to the people!

Flexskillz: Picture this scenario, i buy an item worth N500, I present a N5000 note i recieve a balance of N4500 in other denominations, am i not gonna ed up with more cash in my pocket?

You are not ending up with more cash in your pocket, but more of Naira denominations.

I will rather wait for the manifestation of the effects of this policy.

The CBN just need a lot of enlightenment..

The problem is how the Police will be comfortable with carrying N20 in coins, and this may lead to a jerking up of the standard tip to the next Naira paper denomination.

An important factor we should not neglect is the attitude of Nigerians towards the coins as people tends to reject it as s means of transaction as experience has shown us, besides what happened to The coins that were introduced some years back?

crackhouse: This jarus of a guy didn't do a nice job here. He was busy romancing & laughing with the dude and agreeing to whatever he said instead of asking him good & challenging questions that will throw him off-balance. This interview is more of a friendly one than an investigative or fact finding one, Infact it's not explicit. Thumbs down my guy jarus. This shows u are not into professional journalism.

Exactly

big deal 007:


Nice one but I don't agree with you on this statement... "It is clear SLS and his CBN do not do research or carry out investigations before coming out with policies and actions that will affect the common man". I believe they do research and they know the truth but do you think they care if the policies will affect the common man negatively? Look, behind most policies and every bill or law in Nigeria lies the agenda of the Elites, they consider first how it will affect them and try to manipulate the common people making it look as if it is for the good of the people.

They don't research. They copy like samsung. Wasn't it the same SLS the plagiarist?

We actually need even N10,000 notes, our paper money should start from N100. I think am changing my mind. I support SLS based on following analysis.

Nigeria Currencies values in majors currencies

Naira USD @ 150 UK pounds @ 250

5 = 0.03 (3 cent) = 0.02 (2 pence)
10 = 0.06 = 0.04
20 = 0.13 = 0.08
100 = 0.63 = 0.40
200 = 1.25 = 0.80
500 = 3.13 = 2.00
1,000 = 6.25 = 4.00


UK pounds currency in Naira @ 250
PDS NGN
5 = 1250
10 = 2500
20 = 5000
50 = 12500



US Dollar currency in Naira @ 160

$ NGN
5 = 800
10 = 1600
20 = 3200
50 = 8000
100 = 16000

If N50 is coins, I challenge who will buy pure water for N100 just because N20 is in coins.

blaqoracle: an average person in this country is as dull as a donkey, sorry to the very few brilliant nigerians. could All These be the outcome of series failure in waec and neco exams. these Set Of People Who would Trumpet The Supposed achievement of soludo will never see anything good in sanusi lamido. soludo presided over the decay in the banking sector and widespread looting and fraud in the banking sector, yet he is still revered and praised to the high heavens as the one that brought about consolidation of banks. i Am aware that a lot of southerners, especially those from the south east, during the late president yar'adua campaigned vigorously for yar'adua to retain soludo, the late president thought otherwise, and appointed sanusi. the Achievement Of Sanusi are so obvious as comparing the moon with the sun. sanusi has brought back sanity to the banking industry. there Has hardly Been Any Reported case of fraud in any bank o the in his tenure. the Recruitment of our young women to use their symbol of virtue to source for bank deposit has drastically reduced. all Our Atm machines now secured. he Has Recovered nearly all the stolen billions as embezzed by the bank executives; he has even sent some of then to jail. Do You Imagine How Gut and resolve and sacrifies it takes to fight the rich and the mighty? if you dont know ask farouk lawan and elumelu. he has good to the senate and left them all postrating, after which the house of rep rescinded their decision to invite him. all In Less Than Three Years. i Know Why These two groups, west-east tend to antagonize anything north. it Is Simply because they are suffering from the hang over OF defeat in the hands of the latter in nineteeth and twentieth century respectively. remember That Sanusi is an educated royal blood.

Ok, you did good until you got to the bolded, then you completely lost me.

cheikh: Kay 17


@^^ Bros, I think you are definitely wrong on the highlighted above. They are very much the main part of the real economy of Nigeria . They are the majority of the buyers sellers and consumers of our "poor"/third world economy hence CASH is indispensable but vital for daily survival. They are Nigerians and in the majority too .
Deflation rarely will happen in an "unsophisticated"/low- tech economy like Nigeria. We do not have good regulatory institutions/mechanisms/tools to control anything within the country let alone human economic activities of the ordinary person on the street. Prices go up and rarely go down in our kind of economy. Please go check out the price of "pure water", roasted plantain, ground nuts, mama put and transportation in our cities/towns against what the prices were pre subsidy removal brou ha ha. Cash is king in Naija and we are not going cashless anytime soon in a place energy and communication are seen as luxury instead of the [b]base [/b]on which a modern/ancient economies are built on.

That's because underdeveloped economies always have the particular anomalies for inflation, they aren't poor production, poor economy management, poverty and ill advised socialism. The Nigerian economy suffer deflation, its just that we haven't experienced it before.

The 5k banknotes should be blamed for inflation, rather the minimum wage, overpriced capital projects, hiked wage bill of the govt and unnecessary spending.

phraze: Only people with foresight emulate the steps of Great Leaders. Mr. Seun has supported this, don't know why i should'nt. Ekù ishè Sir

Because Seun supported it is not a good enough reason for you to.. You need to sit down and critically analyse the implication/impact of that high denomination on your economic capability. I SHAKE MA HEAD FOR YOU.