Nigeria’s N5,000 notes will be reserved for banks and heavy cash users said the nation’s National Planning Minister, Shamsudeen Usman recently. According to him, the notes will not be for mass circulation.
Meanwhile, an activist group called the “Anti Corruption Network” recently protested the introduction of N5,000 notes in the country. The protesters stormed the Central Bank of Nigeria headquarters in Abuja chanting anti government songs even though there was a heavy downpour.
Usman argues that like the 5000 Euro note, the N5,000 note would not be in circulation to the average cash user but would e specially reserved for people who need a lot of cash to store higher value. He noted that the proposal for the higher currency note has been endorsed and that the notes would not lead to inflation in the polity nor would it encourage corruption.
“Clearly, the N5000 note unlike some people misrepresent, is not going to lead to higher inflation. There is absolutely no link. I am an economist, I had been deputy governor operations of the Central Bank. The last review of the introduction of N1000 note and the various coins I was deeply involved, it was my responsibility at the Central Bank.
There is absolutely no link between inflation and the currency denomination. So, obviously the discussion today was basically to endorse. Mr. President had already approved, that is the only requirement by law. The CBN is to propose and Mr. President is to approve. And since Mr. President has approved, really what is important is to just explain,” he said.
He further noted: “A 100 dollar bill is N16,000 while N5000 note will be 30 dollars, so which one is bigger to carry if you are doing corruption? So, I do not think is necessarily going to increase the level of corruption.
Those doing corruption will probably find that too small than 100 dollar bill, which is still bigger than the N5,000 note.”
Africa’s richest man, Alhaji Aliko Dangote also weighed in on the introduction of the high value currency saying that the N5000 note would not cause inflation but protect the economy.
In the same vein, Chief Atedo Peterside, the Chairman of IBTC, argued the N5000 would reduce the cost of printing bills.
“If I were the CBN Governor, I will prefer to print N10,000 notes,” he said.