Obasanjo is a good farmer and bad economist – Mallam Lamido Sanusi
The Central Bank Governor, Mallam Lamido Sanusi, has taken off the gloves in his response to Obasanjo’s criticisms of the planned introduction of the N5,000 note.
The CBN governor said he could not be sure that Obasanjo made the statements credited to him at a recent function held for the Institute of Directors. Obasanjo had said the N5,000 note would erode the purchasing power of Nigerians, and slammed the policy.
In his reply, the CBN governor said Obasanjo introduced several large denominations including N100, N200, N500 and N1,000 notes and this did not affect Nigerians adversely either through inflation or other economic indices.
Sanusi said, “This is an interesting country because my uncle or my father who was our former head of state, General Obasanjo, who we all know is a very successful farmer, is a very bad economist; especially for saying that the introduction of higher denomination will cause inflation and improve hardship.
“Obasanjo introduced N20, N100, N200, N500 and N1, 000. He had introduced more higher-denomination currencies in Nigeria than any other head of state.
“He did 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.
“It is wrong for somebody, like Obasanjo, who had done this to stand up and say introducing a higher denomination will cause inflation.
“We all know that we cannot have inflation by printing higher bills if you don’t increase money supply and this is simple economics.”