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Sanusi and the Theory of the 5,000 Smackaroos

By on August 29, 2012

Truth be told, I am one of the people that root for the Central Bank governor. But if its up for debate on whether he has crossed the line this time, I think we can all agree that water don pass garri.

The CBN governor should have maintained his Media shut-out policy, because now CBN has been forced to issue statement, the statement leaves much to be desired.

The CBN Director of Corporate Communications, Mr. Ugochukwu Okoroafor said in a TV interview with Channels that Economics prove the Governor is correct in his policy.

CBN Governor

His words: “I have heard that the introduction of the N5, 000 will bring inflation. I challenge anybody, who is an economist to tell me an economic theory that says when you have a higher denomination in your pocket, it will change how you spend money.”

Now although Mr. Okoroafor is not the same as Mr. Sanusi, he is the mouthpoece of the apex bank and thus his views represent the entire organization. So it is silly that the apex bank in Nigeria thinks that economic theory propouned by oyinbo usually many years ago is paramount, definitive and conclusive on all matters pertaining to Nigeria and the planned introduction of the N5,000 note.

Mr. Sanusi in this thinking is quite like the ostrich who buries his head in the sand to pretend problems are not there. He wants Nigerians to believe that the N5,000 note will not drive up the price of goods and services in the country.

You see this is because Mr. Sanusi, like David Mark of yesteryears does not believe that the N5,000 note is for the poor. Just like Bala Mohammed who said Abuja is not for the poor. What these elitist fail to understand is just because you do not design something for the poor, does not mean the poor will not aspire to it.

Lamborghini Murcielagos, Bugattis and other luxury vehicles are not manufactured for the poor, however some poor men will loot public funds or shoot up and rob a bank for funds to acquire such ostentatious goods. In both cases corruption, and crime went up.

If the CBN succeeds in its wild adventure to introduce a N5,000 note, many things will go up – namely crime, corruption and prostitution. The leadership of the country cannot continue to live in cocoons surrounded by security and draft policies that are counter-productive to the aspirations of the people.

Economic Theory as it stands cannot already know everything. If it did, why are the economies of Europe, Spain, Ireland, Italy, Greece and America suffering from systemic shocks every now and then or in some cases, seemingly in perpetuity?
We are in the 21st century not the 19th or 20th century where certain theories were propounded. Google is now making cars that drive on their own. Yet CBN is talking about Keynesian economics.

What of Nigerian Behavorial Economists in the 21st century? Mallam Sanusi and his shop think we are all jonzing. We do not know that he is our saviour come to bring us the coins and legal tender we deserve.

Mr. Sanusi obviously has alterior motives and he needs to be careful as these always have a way of outing, ask Nnaji. What is even more frightening is how this leader can say in one same sentence that ‘Nigeria is going cashless to reduce cash management expenses’ and then say CBN will introduceN5,000 note to achieve the same.

Who is confusing or deceiving who? The aim of this article is not to propound economic theories, we will leave that to the economists, but to demonstrate that the theories Mr. Sanusi is referring to are quite irrelevant and primitive in comparison to the Nigerian way of life. We are where we are as a result of similar economic theories, just ask the World Bank and IMF!



  1. skipper

    August 29, 2012 at 8:41 am

    I still think he deserves to be Shot just for suggesting it….these country is going from Bad to WORST within just a short period of 3yrs Thanks to the drunkard we call a president.. SHAME!!!!…

    • Jaspa Jacksparo

      August 29, 2012 at 4:06 pm

      You are a big full for referring to the President of Nigeria as a drunkard, you and your retarded lineage what have you achieved in your community that you think gives you the right to insult the person of the President of Nigeria. You better call yourself to order and not come to a public forum like this to display your stupidity, worthless pig….

  2. balox

    August 29, 2012 at 9:50 am

    Nice piece.

  3. oni

    August 29, 2012 at 10:52 am

    The keynessian’s theory are mean’t for the oyinbos and the we Africans especially Nigerian. Why can’t all the great Nigerian Economist propounded their own Nigerian theory to suit her own Economic activities

  4. Papi

    August 29, 2012 at 11:21 am

    about from the fact the theories are meant for the oyinbo’s most of the are now changing so many the case of Atom which we were thought to be smallest element in 19th and 20th centuries but now in the 21th century they say it can further be broken in to protons and neutrons! which can further be broken to
    Hadrons. so let Mr. Sannusi dont call us fools. #SayNoTo5000 note

  5. Nura Mohammed Kamfut

    August 29, 2012 at 5:12 pm

    Dats d problem wiz dis country, we always approach issues on reverse gear. D discussion they are now having should have been d 1st approach where d NA are expected 2 conduct public hearing on dis important & sensitive national issue b4 going ahead 2 announce their decision. However we are expecting d senate 2 handle dis issue wiz serious caution & never allow d CBN 2 find their way if they are true reps of d people. Dis is bcos all d argument they are presenting has 2 do wiz economic theories dat has never work in dis country bcos of our peculiarities. D mistake our policy makers are making & they are still making is dat: comparing us wiz advance countries of d world like US & UK. We always seems 2 4get dat; d system dat works in doz countries may not really work here in Nigeria bcos if they are working, we would have gone far by now. D senate should consider d plight of ordinary people on d street whom are mostly living on less dan $1/day. So d issue is not about GEJ, Sunusi or d Senate who will not have any problem wiz it but is about d poor Nigerians. One is not saying d introduction of d note is what may cause inflation but rather, we are saying it will encourage corruption, push people 2 spend more, discourage local people 2 save in banks etc. D coins may not b acceptable 2 people & naturally they will phase out like d previous N1, 50k etc & dat will automatically push up d prices of things & dat is exactly d reality of d situation, so d issue is not about economic theories but rather is about practical economics!