₦airaland Forum

...Such high denominations will worsen inflation; it should be a ‘no-go’ area for the government

All of a sudden, Quantus Economics, has leapt to media and public attention. Before its speculation that the monetary authorities were considering introduction of higher denomination notes for the Naira last week, little was known of the body. Even now, a search on the internet yields little information on it.

However, because Nigerians have become very sensitive to matters of the economy, it has leapt to front page of major newspapers and attracted reactions from leading economic organisations.

Quantus Economics reported that there were plans to issue N10,000 and N20,000, a giant leap from the N1,000 that has remained our highest notes for years. Perhaps this would not have received so much attention if there had not been suggestions before now that N5,000 notes were in the offing.

The Central Bank of Nigeria (CBN) was reported as making plans to reduce the cost of printing notes by introducing the higher note. However, the reaction of the public to the move indicated that it would have been an unpopular decision.

Quantus Economics had argued that introducing higher notes would not only reduce the cost of printing currency in the country, but assist the public in handling them. The body said the existing notes had lost so much value that carrying them about had become a burden to people, especially where notes lower than even the N1,000 have to be paid out in the banks.

However, the Organised Private Sector and the Labour movement have stridently opposed the plan, dubbing it elitist. To illustrate their position, they pointed out that a worker on the current minimum wage of N70,000, would only be paid three N20,000 notes and a N10,000 if the suggestion is adopted.

The two bodies that would be impacted most by the decision, if allowed, have pointed out that it would reverse the gains in policies driving down inflation. They have pointed out that it is anti-people. It has been argued that the rich are pushing for the policy because they want to carry currency about more easily.

This is contrary to the government policy that is promoting digital transactions. The cashless programme introduced in December 2011 by the Jonathan administration has been promoted by successive governments is the way to go. We agree with the cashless policy that has already been embraced by many in the economy.

Most people in the formal and informal sectors of the economy are now encouraged to promote transactions digitally. In the retail end of the downstream sector of the oil industry, many customers usually opt for the use. Wholesale traders, supermarkets and suppliers of raw materials for manufacturing no longer have to carry cash about.

This has helped in reducing armed robbery incidents, especially in the urban areas. Break-ins and burglary have drastically reduced, too, because there is little handy to compensate for efforts of the criminals.

On the contrary, corruption will receive a boost if higher currency notes are introduced. It would be easier to receive millions of Naira gratification without detection. Is this in the interest of the country? No. It will rather nullify efforts by the anti-graft bodies to promote ethical conduct in the country.

If workers, represented by the Labour movement, and employers of labour in the private sector are united against the move, it is difficult to appreciate where the move is coming from.

Earlier, when the cashless policy was being introduced, the government had said it was in the public interest since it would assist in the drive to stem corruption in the public sector. So, why should the scheme now be scuttled? A country confronting myriad economic, corruption and security challenges should not help the enemies by introducing such an inimical policy.

DMCY:
This is a lie sha… but if they introduce that 20k note, haa! Hyperinflation will occur because some notes like 100 & 200 naira notes will die naturally just like 5 & 10 naira… Come imagine working for a whole month and your salary of 70k minimum wage is given to you in 3 notes, morogo!😂😂😂

DMCY:
This is a lie sha… but if they introduce that 20k note, haa! Hyperinflation will occur because some notes like 100 & 200 naira notes will die naturally just like 5 & 10 naira… Come imagine working for a whole month and your salary of 70k minimum wage is given to you in 3 notes, morogo!

creolehunt:
Someone please explain in very simple and practical terms how the introduction of higher denominations will lead to inflation or in the words of one of the posters above, hyperinflation.

I wait.

creolehunt:
Someone please explain in very simple and practical terms how the introduction of higher denominations will lead to inflation or in the words of one of the posters above, hyperinflation.

I wait.

creolehunt:
Someone please explain in very simple and practical terms how the introduction of higher denominations will lead to inflation or in the words of one of the posters above, hyperinflation.

I wait.

creolehunt:
Someone please explain in very simple and practical terms how the introduction of higher denominations will lead to inflation or in the words of one of the posters above, hyperinflation.

I wait.