I had reported earlier that former President Olusegun Obasanjo had heavily criticized the introduction of the 5000 naira note saying it would increase inflation, kill production and affect small businesses negatively. The CBN Governor Lamido Sanusi has now reacted to the former President’s statement against the introduction of the new notes.
Mr. Sanusi in his reaction said that he was surprised that the former President could oppose the proposed N5,000 note, given that the high currency denominations in the country, including N1000 note, came into being during his (Obasanjo) regime.
Sanusi said: “This is an interesting country because my uncle or my father, who is our former Head of State, Gen. Obasanjo, you know he is a very successful farmer, but he is a very bad economist. He stands up and says that this higher denomination will cause inflation and improve hardship,” reported The Punch.
He went further to say “Gen. Obasanjo did N20, he did N100, N200, N500 and N1,000. He introduced higher denominations in Nigeria than any other head of state. He did a N100 note in 1999, he did N200 in 2000, he did N500 two years later and in that period inflation was coming down because it was accompanied by prudent fiscal and monetary policy.
“For somebody (Obasanjo) who had done this to stand up and say introducing a higher denomination will cause inflation must be an empirical, most important determinant of inflation in our country given the number of notes he had printed.”
What are your thoughts on the CBN Governor and the former President’s arguments for and against the new notes?