intervention of the National Assembly and the stop order by President Goodluck Jonathan is a victory for
democracy. It aptly demonstrates that the president listens and respects the wishes of the generality of Nigerian
people. The agreement between the President and the National Assembly that led to the stoppage of the
new note is a triumph of the democratic imperative and should be commended. No policy issue has drawn as much debate and public opprobrium in recent times as the move by the CBN
governor, Mallam Lamido Sanusi, to introduce into the nation’s monetary system, the high denomination
N5000 note. Not even the argument by the CBN on the need for cost saving on money spent annually in
printing naira notes, or its suggestion that the new note is only for high net-worth customers, could sway
the public to its side. The arguments held no water with the people. Well-tested economists, past Nigerian leaders, lawyers and all those versed in monetary issues were also
vehemently opposed to the introduction of the new note and the controversial currency restructuring. The CBN position that the new note would not cause inflation was rebuffed by Nigerians who knew from
experience that the introduction of notes of higher denominations in the nation’s monetary system in the
past invariably led to depreciation in the value of older notes. The fate of N5, N10, and N20 since the introduction of N200, N500 and N1000 attests to this. Again, since
Nigerians do not readily accept coins, converting more naira notes into coins as the CBN planned to do
would have compound the problem. Despite academic notions that higher denomination notes do not cause
inflation, in Nigeria’s peculiar circumstance and experience, the opposite has been the case. In fact, the argument against the introduction of the high denomination note far outweighs the one for it.
More so, the introduction of the new naira note contradicts the CBN’s cashless policy. Although, the
Special Adviser to the President on Media, Dr. Reuben Abati, has explained that the suspension of the
new note is to enable the CBN do more consultation and enlightenment on the matter, we think such is
belated. The CBN ought to have done that initially before rushing to force its decision on Nigerians. The lesson from
the new note debacle is that government should always throw up major policy issues to public debate to
gauge the pulse of the people before the president gives his approval. This will guide the government’s
actions and also help to avoid policy reversals the nation has witnessed of recent. We say this considering the fact that frequent policy somersault is not good for any administration,
especially a transformational government. While we acknowledge that the CBN is in charge of the nation’s
monetary policy, including issuance of currency notes, it must strive to carry the public along, especially
on issues that will have far-reaching effects on the economy and the people. The grandstanding by the CBN governor on the N5000 note was uncalled for. We commend the President
for bowing to the wishes of Nigerians on this particular issue. Some past Nigerian presidents always
ignored resolutions of the National Assembly on major national issues, treating such resolutions as
advisory and lacking the force of law. It is good that we have a president who honours resolutions of the
people’s representatives. In view of the strong argument by notable economists that the introduction of the high denomination note
will not augur well for the nation’s economy, we urge that the idea of a N5000 be completely rested. The
proposed further consultations, enlightenment and deliberation on the matter should be jettisoned. We also want to believe that the CBN has not awarded the contract for the printing of the new currency.
The faux pas that attended the N5000 note controversy should be avoided in future by allowing robust
public debate on any controversial issue before final approvals are given by the president and the relevant
authorities.
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