By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) Monday said the introduction of the N5, 000 denominations into the economy will save Nigeria N7.0 billion Naira Yearly.

Ugochukwu Okoroafor, Director, Corporate Communications of the CBN made this affirmation in Lagos Nigeria at a media Parley with Financial Journalist.

“We are responsible to those who need the higher denomination; they need to use it to improve commercial transactions and that’s all we are trying to do.

It’s not increasing money supply or inflation, from our projections, we are going to save about N7.00 billion each year using the new currency structure that we have; because there will be a reduction in the number of Notes that we are going to print in the actual volume” Okoroafor said.

He affirmed that the CBN does not operate in a vacuum; but operate to serve the people and in doing so, they have done their research and consultations on the issue and involved Experts.

“Right now its being done in the United Kingdom (UK), you look at your currency you review it, the currency Note is a countries symbol” he said.

Okoroafor said apart from the introduction of the N5, 000 denominations, Nigeria’s Central Bank is for the first time creating a family of currency notes. “The last time we reviewed the N100 note was 13 years ago, the N200.00 11 years ago and the N500 note about nine years back” he said.

He affirmed the CBN intends to have a family of currency Notes,” when you take the new N100 notes, we are going to introduce a feature that will tell you what the next currency is going to be in terms of colour, there will be a colour scheme that will make you know what the next higher denomination will look like” Okoroafor said.

According to the CBN’s Director of Corporate Communications, when the N5,000 Note will be issued, Nigerians will have an idea what the next denomination will look like, if and when the CBN does it. “We will now have a family of currency, it will be more aesthetically pleasing and logical” he said.

Okoroafor further affirmed that in America, there is the $500, $1000 and $10,000 bill which are not used for everyday transaction; but exists and are used for specific purposes. “When we introduce the N5, 000 Note, if it’s not going to be used for everyday transaction, the Market will determine that” he said.

He said when the CBN did Sensitivity Analysis, “we decided that from what we see in the Market, in terms of ease in commercial transactions, the N5,000 Note would serve some purpose, reduce cost and the physical number of currency Notes quite significantly” he said.

“Businessmen, who move money around, would saw the need for the introduction of N5000 Note and appreciate it. The CBN want to ensure that there is ease of transaction by our businessmen and Nigerians” Okoroafor affirmed.

In the same vein, he refuted the Report by a Nigerian Daily Name (withheld)
that N40 billion would be spent on printing the N5000 Notes as false, “the cost is in our Annual Report, we are going to make this available as soon as possible” he said.

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