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Saturday, August 25, 2012

CBN TO INTRODUCE N5000 NOTE NEXT YEAR


A NEW legal tender will be introduced in the country early next year by the Central Bank of Nigeria (CBN), it has now been confirmed. It’s a N5,000 bill, which will, among
others, have the features of three female Nigerian nationalists: Margaret Expo, Funmilayo Kuti and Gambo Sawaba on it.
According to the CBN Governor, Mallam Lamido Sanusi, who revealed the plan at a briefing in Abuja, President Goodluck Jonathan had, since last December, given his approval to the plan, which will also involve the redesigning of the existing currency notes and coins.
Under the new structure, Lamido explained, the existing N500, N200, N100, N50 will be redesigned with new security features. The N20, N10, and N5 notes will also be converted to coins.

Sanusi debunked the argument in certain quarters that the new initiative could spur inflation, insisting that countries like Singapore and Germany, which have higher bills of 10, 000 have not been weighed down by inflation.
Besides, he stated that the plan was in line with international best practices, which require monetary authorities to review their nations’ currencies at intervals of between five and eight years, to address weaknesses and other challenges.
He explained that the last comprehensive review of the country’s currency was carried out in 2005, which resulted in the introduction of the N20 polymer banknote, followed by the withdrawal of the N50, N10 and N5 banknotes in 2007, which were also converted into polymer banknotes in 2009.

He said the printing of the already designed notes will be by tender and will be advertised to give currency printers, including the Nigerian Printing and Minting Company the opportunity to compete. But he declined to give the anticipated cost implication.
For the new N5,000 note, Sanusi said “we have chosen three Nigerian women involved in the pre-independence struggles. And the back, we have the National Assembly, denoting democracy.

 

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