Nigeria - N5,000 Note Will Save Economy N7 Billion Annually - CBN

The Central Bank of Nigeria (CBN) has disclosed that the planned introduction of N5,000 note and coins in 2013 will save the economy N7 billion yearly.

The CBN had two weeks ago announced its plan to restructure the currency which includes the introduction of N5,000 note as the highest denomination while N5, N10 and N20 are to be coined.

Speaking to journalists in Lagos on Monday, Ugochukwu Okoroafor, director, corporate communications, CBN, said the restructuring of the currency will reduce cost of currency management.

Citing example from the United Kingdom (UK) which is currently reviewing its currency, he explained that the planned currency restructuring was in line with global best practice which demands that countries restructure their currencies once in a while to be ahead of counterfeiters.

The new currency structure will put in place features that will aid the visually challenged to identify a particular currency. It is also an opportunity to incorporate the less privileged, the CBN said.

“We are recognising women in the new currency restructuring and this is the first time we are recognising eminent Nigerian women”, he said.

Against criticism that the introduction of N5,000 note will cause inflation, Okoroafor explained that it will not because there would be no change in money supply.

He said there is need for a change in consumption pattern of Nigerians. “Let us look at the true causes of inflation and address it”, he said.

Furthermore, the CBN spokesman noted that some people are using dollar as a store of value, adding that the apex bank intends to ensure that dolarisation is reduced.