As protesters take to the Central Bank of Nigeria premises in Abuja, the National Planning Minister Shamsudeen Usman has assured yesterday, that the proposed N5000 note will not be for mass circulation. He said the N5,000 note would be reserved for banks and heavy cash users.
The minister spoke in an interview with the State House Correspondents after a meeting of the Economic Management Team (EMT) presided over by President Goodluck Jonathan, Usman, just as the Federal Government, yesterday, formally endorsed the introduction of the note despite the criticism that has greeted its introduction.
At the meeting of the Economic Managament Team chaired by President Goodluck Jonathan, the CBN governor, Sanusi Lamido, also explained the restructuring of the currency. The team also dispelled the fear that the introduction of the note will lead to high rate of inflation, saying that there was no link between inflation and currency denomination.
He said that rather, the introduction of the higher currency would help shore up the value of naira as most people who stored money in hard currency would now embrace the high denomination.
The minister of National Planning, Dr. Shamsudeen Usman, who fielded questions from state House correspondents said that the higher denomination did not violate the cash-less economy proposed by the CBN.
Shamsudeen said like the 5000 Euro note, the new N5000 note would not be in normal circulation but would be reserved for the banks and few other heavy cash users to store higher value. He debunked the argument that the introduction of the N5000 notes would lead to corruption, noting that the allegation of corruption had always been in dollar denomination. He said: “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.”
Speaking in the same vein, another member of the team from the private sector, Alhaji Aliko Dangote, said the N5000 note would not cause inflation but protect the economy.
The business mogul said that the cost of printing of the note and the coins would not be different from the amount used in printing other notes.
Source: Vanguard Nigeria