Naira Scarcity: "CBN Should Have Introduced 5000 Naira Notes Instead," Says NACCIMA DG, Gives Reasons
- The Central Bank of Nigeria's decision to not introduce 5000 naira notes has been questioned.
- The director general of NACCIMA, Sola Obadimu, feels the CBN governor Godwin Emefiele made a mistake.
- He says that if the CBN had launches the N5000 note, it would achieve the same purpose as redesigning the new notes
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The Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, Sola Obadimu, has questioned the Central Bank of Nigeria's decision not to release higher denominations of naira notes.
According to him, the CBN should have introduced N5,000 notes rather than redesigning the old notes.
Speaking in an interview, Obadimu explained that while the new naira policy is laudable, there would have been less pressure on the masses if it was done differently, The Punch reports.
Why the new notes are important
The director-general stressed that introducing N5,000 notes would have mopped up the money in circulation without creating so much discomfort for Nigerians.
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He argued that the hardship Nigerians are facing with the new policy would have been nonexistent or reduced to the barest minimum.
“If I were the CBN governor, all I would have done was to have introduced N5,000 note. That would have helped to mop up the money in circulation without the kickbacks we are getting.
"The CBN would have also spent less money printing new notes because it is a higher denomination, fewer amounts of bills would have been printed.’’
Naira against other currencies
Speaking further, Obadimu noted that it was a major concern that the redesign move of CBN has failed to help or strengthen the Naira against foreign currencies
According to him, it is disheartening to note that the Naira is weak against foreign currencies, particularly the dollar and Euro.
“Another thing is that our highest denomination, which is N1,000, is only worth two dollars at the official rate and it is not too good for our image.
“There are 50 and 100 Euro notes and how much is a 100 Euro note in Naira?
“A Euro is almost N1,000. So, 100 Euro is about N100, 000.
“That is just a bill and ours is worth just two dollars, which is not good for our image.’’
The DG also spoke on the move to switch fully to a cashless policy which the CBN is trying to implement.
He pointed out that while the decision represents the new world order, he questioned again the timing.
“For instance, the government is talking about a cashless economy which is good because the world is moving toward full digitisation, a paperless world.
"But we are not there yet when it comes to internet infrastructure. For instance, when a financial transaction declines, you get debited and the bank cannot refund you for up to three weeks even if the transaction is to the same bank.
“So, for the urban network to improve and for the rural areas to catch up, government has to invest heavily in infrastructure so that every part of Nigeria will be digitised."
Video shows bank staff jumping back fence
Meanwhile, in another report, Nigerians getting desperate for cash is leaving thousand of bank staff fearing for their lives.
In the latest development, a video shows the staff jumping bank fence as customers get more frustrated.
Nigerians have reacted to the video while the CBN has continued to insist that there will no deadline extension.