A university lecturer Dr. John Udoidem said yesterday said that the planned introduction of N5000 note by the Central Bank of Nigeria (CBN) would negate the apex bank's cash-less policy.
Udoidem, of the Department of Banking and Finance, University of Uyo, said that with N5000 note, more naira would be in circulation contrary to the objective of cash-less system.
He told the News Agency of Nigeria (NAN) in Uyo that "the same regulatory agency that is planning to introduce the N5, 000 notes is also planning cash-less policy. People will move about with large amounts of money which directly negates cash-less system.
"Again, the proposal will ease business transaction which literally is an impetus for Nigerians to carry more of money. I think there is a conflict of intention here. What I think instead for Nigeria is to have cash-less economy by reducing the current N1000 note to N20."
The don argued that the cost of living would be higher with the N5000 notes considering the nation's double digit inflation rate.
"Experience has shown that after every introduction of high currency denomination in Nigeria, inflation shoots-up. Before you know it, N50 as the least naira note, will be used for exchange of goods and services for what N5 ordinarily ought to buy," he said.
He advised Mallam Lamido Sanusi, the CBN Governor, to continue with the redenomination policy of his predecessor, Professor Chukwuma Soludo.
NAN
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