FG Backs N5000 Note

5,000 naira currency note Nigeria - Unswayed by
the widespread criticism of the plan by the apex
Central Bank of Nigeria (CBN) to introduce the
5,000 naira note, the federal government has given
the bank the green light to introduce the note.
Minister of Planning Shamsudeen Usman told
journalists at the meeting of the President's
Economic Management Team in the capital city of
Abuja Tuesday that President Goodluck Jonathan
had approved the proposal to print the 5000 naira
note.
'The discussion today (Tuesday) was basically to
endorse (the introduction of N5000 note). Mr.
President had already approved and that is the only
requirement by law. The CBN is to propose and Mr.
President is to approve,” the Minister said.
Last Thursday, CBN Governor Lamido Sanusi
announced a proposed review of the nation’s
currency, highlighted by the plan to introduce the
5000 naira (US$31) note and conversion to coins of
the 5, 10 and 20 naira notes.
The announcement immediately sparked a
groundswell of controversy, with critics charging
that the introduction of the 5,000 naira note as the
country's highest denomination will spark inflation.
Hitherto, the 1,000 naira note is the country's
highest denomination.
On Tuesday, about 500 protesters led by a former
MP, Mr. Dino Melaye, demonstrated in front of the
CBN office in Abuja against the plan to introduce
the 5000 naira note.
The private Punch newspaper quoted Melaye as
saying the CBN’s action will send a wrong signal to
the world that the naira value is so weak that more
of it is needed to transact businesses.
'The implication of the 5000 notes on the economy
is serious. The policy is unnecessary and will serve
no useful purpose. We have more socioeconomic
challenges than restructuring currency at the
moment,' he said.