Some experts have expressed mixed reactions to plans by the Central Bank of Nigeria (CBN) to introduce N5,000?note in 2013.
They?expressed their views in separate interviews with the News Agency of Nigeria (NAN) in Lagos on Friday.
?An economist, Mr Bismarck Rewane, said that the introduction of the note would not cause inflation as some expert had said.
He, however, said that there was no longer any need to redenominate the naira in view of the cash-less policy of the apex bank.
Rewane, also the Chief Executive Officer of Financial Derivatives, said that there was no need for high denomination notes with the cash-less policy, but added that it would not negate the cash-less policy.
He said that the introduction of the N5,000 note had been in process for about four years before the cashless scheme came up.
?“The fact is that the plan was conceptualised about four years ago before the introduction of the cash-less policy.
“Now, with the cash-less policy, we don’t need the high denomination notes as everybody is going cash-less,” he added.
Dr. Samuel Nzekwe, immediate past President, Association of National Accountants of Nigeria (ANAN), said that the introduction of high denomination would make it possible to carry large sums around.
Nzekwesaid that one of the reasons the local currency was depreciating was as a result of the inactive manufacturing sector, stressing that the nation was still an import-oriented country.
He said that most of the commodities consumed in the country were imported from abroad and this was making the currency to lose value.
Mr Olumide Adegoke, General Manager, Standard Alliance Insurance, said that the note could encourage corruption as it would be easy to carry huge sums within the system.
He said that the CBN should also be looking at ways of checking inflation.
Dr. Godwin Inedia, a former Economics Lecturer in Ambrose Alli University, said that the proposed introduction of N5000 could lead to hyper inflation.
Inedia said that in developed countries such as Britain and the U.S,, the governments had restricted the circulation of prime currencies in the system.
According to him, the Nigerian economy has not developed to a stage where such a high denomination could be used.
“The economy is not matured enough to start thinking of using N5000 note, I don’t see the rationale behind it,” he said.
Inedia also said that coining the N10, N20, and N50 notes and the new N5000 would cost the apex bank huge amount of money which could be used for more productive uses.
Mr Wole Olowu, General Manager, True Bond Micro Finance Bank Ltd., said that it could have adverse effects on the economy since Nigeria still relied heavily on imports.
Olowu said that it would have ripple effects on the people since the?impact of the removal of fuel subsidy was still obvious on the economy.
NAN recalls that the CBN on Thursday said that it would introduce N5,000 note and coin existing N5, N10 and N20 notes in ?2013.
Gov. Lamido Sanusi of the CBN allayed the fears that the introduction of the N5,000 note would cause any inflation as being argued by some people.
He said that the introduction of the higher bill would complement the apex bank’s cashless policy as it would substantially reduce the volume of currency in circulation.? (NAN)