Economists have expressed divergent views on the decision by the Central Bank of Nigeria to withdraw polymer notes from circulation soon and replace them with paper notes.

While some experts, who spoke to our correspondents in an interview on Tuesday, agreed with the decision, others blamed the CBN for performing experiments the country’s economy.

For instance, Lagos-based economist and monetary analyst, Mr. Henry Boyo, said the monetary authorities were confused.

“There is no doubt that Nigerians are being taking for a ride. Some of us told them then that the coins and polymer notes would not work because they would have little acceptance because of the value,” he said.

Boyo said the authorities should concentrate on value of the denominations rather than types of currency.

“The N5, N10, N20 and N50 notes are doing the job that coins should do. The N50 is equivalent to 30 cents. Can you imagine 30 cents in notes in any serious minded economy?” he added.

However, the Managing Director, Financial Derivatives Company Limited, Mr. Bismarck Rewane, said the move back to paper notes would have little or no effect.

“We are moving to cash-less economy and the denominations are low; so, they are irrelevant. Total money supply in circulation is around N1.5tn and a large percentage of total transactions are done in Lagos and the other states that will be joining the pilot scheme; so, I don’t see any problem with the change,” he said.

The Chief Research Analyst, Stakes Capital, Mr. Sanyaolu Kehinde, said, “Our experience has shown that polymer note is not good for us. It is about the way we handle the currency; so, I quite agree with the CBN.”

The CBN had said on Sunday that it would stop the printing of lower denominations of the naira in polymer because they were fading.

Source: Punch (by Ademola Alawiye)