The N5000 note
August 24, 2012 at 3:32 pm #100630
So some of you may have heard that the FG is going to introduce a N5000 note.
Some poeple seem to feel this is a bad idea, but I don’t understand why.
After all, it will mean that it is easier to carry around large sums of cash.August 24, 2012 at 6:25 pm #113313
Hence making it easier to spend foolishly. Also, remember that there is also the plan to change 5, 10 and 20 naira notes to coins. Nigerians don’t like coins. I don’t know a faster way to more inflation right now than this.August 24, 2012 at 7:42 pm #113314
People who want to spend foolishly will spend foolishly, no matter whether you issue naira in N5,000 or N5,000,000 denominations. Anyway, I don’t think that government should be in the business of treating adults like children by trying to control how they spend.
Regarding the plan to change 5, 10 and 20 naira notes to coins, are you saying that if that part of the plan was shelved, you would be OK with the introduction of the N5,000 note?
Also, if you think that introducing N5,000 notes is bad, then do you think it would be a good idea to withdraw the N1,000 and N500 notes?August 25, 2012 at 4:31 am #113315
Tola, it is good to be sanguine and all, believe me, introducing N5000 note will not do us any good. Check other countries with thriving economies, they still spend coins, I can’t remember the last time I saw a Nigerian coin. Now lower denominations of cash are getting irrelevant by the day and inflation is shooting off the charts. It’s a wrong idea.August 25, 2012 at 7:36 pm #113316
I have simply noted the note!August 26, 2012 at 9:10 am #113317
Withdrawing 500 and 1000 naira notes would be one of the best decisions the government would make for our country. Soludo once had a plan to do that and were it not for the greedy government we have, who want nothing good for the people, our country’s economy would have been enjoying a good boost by now with our highest denomination at 50 naira @ tolaOAugust 27, 2012 at 8:36 am #113318
40BN for N5000 notes..u must b kiddin me…am to think People are clapping hands for Sanusi…..August 27, 2012 at 8:36 am #113319
40BN for N5000 notes..u must b kiddin me…am to think People are clapping hands for Sanusi…..August 27, 2012 at 5:32 pm #113320
@queennobo, I don’t understand how only having N50 notes is a good idea. If I want to buy a phone for N10,000, I will now have to start carrying around bundles of N50 notes – how convenient is that, since we don’t yet have widespread means of cashless payment in Nigeria?
By the way, what Soludo was planning was to redenominate notes, so that your N1000 note would be replaced with a N10 note. Of course, everything would be redenominated – if you were being paid N20,000 a month, you would now get just N200 a month. Personally, I don’t see the difference, since you wouldn’t be able to buy more things with your N200 salary.
@Daireenonline, as @queennobo noted, they are going to convert 5, 10 and 20 naira notes to coins, so there will still be coins in the economy. Having said that, what is so special about coins that we should have them? Do you think that just because developed countries have them, we should also have them, or is there some special quality of coins (e.g. the fact that they are round, made of metal, etc.) that means we should have them?
@Hesey, I can understand your point. Do we need to spend more money on printing money? Are there no more pressing areas the money could go towards?August 28, 2012 at 9:03 pm #113321
Quite ironical at a time of applauded clamour for a cashless society! Or is this our problem?August 28, 2012 at 9:16 pm #113322
If it’s benefit is only to reduce the burden of carrying large sums around, then it’s a bad idea. Why not N10,000 note instead of N5,000 note? Come to think of it how many developed countries does their highest denomination up to that amount.
How does a guy whose salary is N50,000 look at the 10 pieces of note handed over to him- a drastic reduction in value of naira. Not to mention other negative economic impact on the nation. The disadvantages outweighs the advantages immensly jare and as such it should be scrapped…September 1, 2012 at 7:18 am #113325
@francis, I think that you need to consider how frequently the note will be used to determine the upper limits. Certainly there are no hard and fast rules, but I think that there are frequent enough transactions involving the transfer of over N5,000 for a N5,000 note to be useful.
I don’t understand the argument of N50,000 in 10 notes being a drastic reduction in the value of the naira. After all, each of those 10 notes is very valuable. If he doesn’t like receiving his salary in N5,000 notes, he can always request for it be be paid in lower denominations.September 9, 2012 at 1:42 pm #113326
Why are we singing the cashless song if we are going to introduce N5ooo? Instead of Ghana most go bags we will now have simple brown envelopes.It will only make it easier for people to steal and it will increase inflation.September 17, 2012 at 7:54 am #113327
Really – who cares?
At least I know I don’t. The country is being run into the ground and nothing you and I think would make any difference.
You must be logged in to reply to this topic.