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Dangote & Business Elite Support CBN Policy, Envision N10,000 Note

By on September 5, 2012

Alhaji Aliko Dangote

The Currency Restructuring Project of the Federal Government has found allies in the person of Aliko Dangote and other Nigerian business elite.

Speaking on the N5,000 note, Alhaji Dangote said, “People are saying that Central Bank is going to spend N40bn on the new notes. Of course, last year when you look at the budget, they spent N47bn to print currencies, so it is not different at all.”

Dangote said the N5,000 Note would protect the economy and not cause inflation.

Also speaking on the matter, Atedo Peterside, Chairman of Stanbic IBTC said if he was CBN Governor he would even create a N10,0000 note. His argument he said was hinged on the fact that Nigeria would save money by printing higher currency denominations as the country was currently losing money to import dollars to finance the activities of corrupt persons and in the printing of large quantities of “worthless notes”.

He said, “If I were the CBN Governor, I would prefer to print N10000 notes.

“Last year, Nigeria spent N47bn to print these small notes. If we were printing bigger denominations, we will print a fewer number and make phenomenal savings.

“Secondly, money is a store of value; all these thieves, rogues and vagabonds running around in various states and all over the country, when they steal money, they will want to keep it outside the banking system.

“So they need a higher denomination notes. Right now, they are using the $100 notes all over Nigeria because they are the best store of values for them.

“If you give them a better store of value in Nigeria, they will move away from these dollars and reduce the demand for the $100 notes and move into our own currency as opposed to the use of $100 notes to hide their loots and so on.”

CEO of Access Bank, Aig-Imoukhuede said the arguements against the policy were not economically sound.

He said, “In the case of Nigeria, our economy is such that a N5000 note which is in effect a $30note is not strange.

“The greatest argument I have heard about it is that the introduction will cause inflation. The other argument is that it will cost money to introduce the new note.

“There is no relationship between the issuance of higher legal tender and inflation. It is unfortunate that some people have misled Nigerians into thinking that it will lead into higher inflation.

“Every Central Bank, by the nature of currency management, will issue new notes all the time, so printing of notes is an ongoing operation that every Central Bank engages in.

“As you are introducing N5,000 notes, you print less of N1,000 and N500 notes. It is not going to add to the cost of printing, it is going to basically fall into your normal annual budget for printing.”

4 Comments

  1. toocul4skul

    September 5, 2012 at 8:50 am

    D way some elites think r really sadenning. Can they all just pause & think about d people dt don’t even earn up to N5000 in a month. Wen inflation comes in, how r d poor meant to survive. Who & who would b able to use these 5000 & 10,000 naira notes, wen 90% of d public r nt well to do. Pls Nigerians, especially d elites dt tink only about themselves, have a re-think about this issue. It does more harm dan good.

  2. John

    September 5, 2012 at 9:06 am

    So looting is now encouraged…

  3. mr Ope

    September 5, 2012 at 9:28 am

    These people are very very stupid…I’m sorry for being insultive here but why would business moguls support the printing of 5000naira note when the issue of cashless policy is dere….I believe and think that the cashless policy will do us more good than the printing of 5000naira note

  4. foryoushallknow

    September 6, 2012 at 6:37 pm

    Now i see we have more illiterate running the affairs of this nation than i used to think, even the so called “ellite”(bunch of illiterate) lack the the knowledge of backfiring monetary index…with the argument of the so called banks CEOs , does that mean
    1. that Nigerian governmental system is now in support of looting and stashing of money at home ? {quote “So they need a higher denomination notes. Right now, they are using
    the $100 notes all over Nigeria because they are the best store of
    values for them.“If you give them a better store of value in Nigeria, they will move away from these dollars” end of quote}…..
    response… does it mean this bank CEO didn’t know that, Nigeria currency value is not stable against the said strong currencies ( dollars, pounds. Euros) ?.
    he should have think that even if N5000 note is being printed most people will still prefer to store in dollar to trade against Naira when its (dollar) value rises… so printing of N5000 note makes no much difference in checkmating this…
    i guess their reason is clear for the printing, TO LOOT MORE AND STASH IN THEIR VARIOUS HOME….

    CONSEQUENCES OF THE PRINTING
    1. More hardship for Nigerian masses
    2. weakling of Nigerian Naira value
    3. looting of public funds encouragement

    Do we punish the whole masses because of some few people and because of lack of technical know how of the policy makers ?….
    Before we can go into this printing from my own point of view , we need to strengthen our Naira conversion rate that will be a more reason for them to stash money in our currency, and we should work on our economic index,

    Nigeria is being managed by fools and its a pity….