CBN Governor calculated wrongly: What Nigeria needs, is currency appreciation not increment in Naira note

Filed under: National Issues |

The introduction of N5,000 note and the conversion of N10 and N20 notes into coin by the Nigerian Central Bank Governor, Mallam Sanusi Lamido Sanusi has generated serious series of argument and concerns from all corner of the nation. Last week, the Central Bank of Nigeria sent a representative to defend their action before the general public but not a cogent reason was given as to what importance and benefits the said introduction and conversion will bring to Nigeria and Nigerians.

I have repeatedly asked myself if the introduction will in any way boost the value of the “Naira” and perhaps make it more comparable to the dollar and/or pounds; If it will better the life of the ordinary Nigerians; If it will see to the end of terrorism thats already on the rise in the country; If it will help in steadying power supply in the country; If it will be a redefining factor to issues surrounding our educational system and lot more. The fact is, introduction of N5,000 note or the conversion of N10 and N20 note into coin will not in anyway change the current spate of challenges in Nigeria, boost the country’s economic system or further advance the nation in any form, technologically or otherwise.

It could be argued but i think that the CBN Governor is more concerned in having his signature in the currency of the country than thinking of something innovative enough to drive the nations economy to a zenith. It is not a bad idea for us to have something that reduces the burden of carrying large bags of paper-money around. But this is not what Nigeria needs right now, its definitely not what the people of this country needs at the moment. If at all Nigerians need something pertaining a change in our currency, then it will be a touch in “currency appreciation”.

The CBN Governor should look at doing something different to our currency, something that encourages local production, something that will increase demand and supply and in turn, boost the country’s GDP. I challenge Sanusi to make the Naira compete with leading currencies in the world instead of trying to shoot the currency note to N5,000, which many believe will only benefit those at the top.

The research and development department of CBN should be creative and strive to exceed constraints. We have actually reached that level where other countries of the world should view us differently and learn from us. If Mallam Sanusi and his team are keen in making a change, they should start by currency redenomination and appreciation.