Sanusi’s Egomaniac Policy Of N5, 000 Notes And Matters Arising- Dino Melaye

The move by the CBN has
been widely condemned as
contradicting the bank’s
cashless policy and it will
definitely worsen inflation in
the country. The Bank and
indeed Mallam Sanusi
however, insisted on going
ahead despite the directive
by the senate to suspend the
action. Our question as an
organisation is the over 40
billion naira that the CBN will
use in printing this new notes
appropriated for in the 2012
budget? We say No to this
wicked policy. Below are our
postulations and position on
this unfruitful venture.
1. What is the rationale
behind this Sanusi’s
egomaniac policy? That is the
question on the lips of every
right thinking person –
Nigerian or foreigner,
economist or non-economist?
Spending over N40 billion to
print large currency
denomination in a ravaged
economy with pressing
developmental challenges
speaks volumes about the
thoughtlessness and
intellectual depravity of
Sanusi’s CBN leadership.
2. The idea of restructuring
the Naira is a grossly
misplaced priority, coming at
a time ordinary Nigerians
cannot put 3 square meals
on the table, given the high
costs of goods and services,
exacerbated by the fuel
subsidy removal.
3. The United States, which
is the strongest economy in
the world, has $100 as its
highest denomination in
circulation. In the UK, the
largest denomination of the
pound sterling ever printed
for circulation was the £1000
note issued between 1725
and 1745. The £100 note was
issued from 1725 to 1943
and was withdrawn in 1945.
Since then, the £50 note has
remained the largest
denomination of the British
Pound in circulation. Saudi
Arabia’s 500 Riyals is its
highest denomination.
4. Sanusi’s clear message
to the world is that the
Naira’s value is so weak that
we need more of it to do
business. The implication of
the N5,000 note on the
economy is serious. The
policy is unnecessary and will
serve no useful purpose. We
have more socioeconomic
challenges than restructuring
currency at the moment.
Nigerians are suffering
because of Sanusi’s inchoate
and anti-people monetary
policies.
5. Aside the cost, the
coining of lower
denominations will not
reduce the cost of business.
The N5, N10 and N20 coins
will be unusable just like the
N1 & 50k coins.
6. This policy is bound to
worsen our inflation rate
because the cost of goods
and services will have to be
rounded upward for ease of
transactions. Things that
used to cost N10 or N15
would now be pegged at
N50, being the lowest
currency note.
7. Sanusi introduced a
cashless policy to discourage
carrying much cash. How
does the introduction of
N5,000 note support a
cashless economy? It doesn’t
make sense: it’s incons
8. istent with, and a
contradiction of, the cashless
policy, which Nigerians are
struggling to come to terms
with.
9. Nigeria is notoriously a
corrupt country: the N5,000
note will simply facilitate
bribery and corruption. It will
fan the flames of contract
and political corruption.
10. The conversion of the
lower currencies into coins
will eliminate these important
historical names: Tafawa
Balewa, Alvan Ikoku, and
Murtala Muhammed.
11. How will the printing of
N5,000 note ameliorate our
growing unemployment? Will
it improve our dilapidated
infrastructure? Will it solve
our education and healthcare
challenges? Will it reduce our
poverty level?
12. The over N40 billion
earmarked for the N5,000
note and the wasteful
resources for its
enlightenment campaigns can
add about 100 megawatts of
electricity into our national
grid. Why waste it in a
roundly condemned project?
13. Sanusi seems to have
coded agenda in all these his
ill-conceived, harsh,
inconsiderate and egomaniac
pursuits? There is more to his
macabre behaviour than
meets the eye. Surely,
restructuring the Naira at this
time is unpatriotic and
smacks of a cover-up of
other personal interests.
14. Is Sanusi ignorant of
the current security situation
in the country? The social
effects of his N5,000 note
will worsen the security
challenges. Isn’t Sanusi
conscious that the N5,000
bill will foster the activities of
Boko Haram? Isn’t Sanusi
aware that the N5,000 bill
will facilitate money
laundering? Doesn’t Sanusi
know that the N5,000 bill will
lead to increase in
kidnapping, ritual killings and
other societal vices?
15. Is Sanusi’s so-called
love for Nigerian women real
or feigned to achieve his
selfish ends? Is there no
better way to honour our
heroines? Or, is there more
to Sanusi’s ambition than
meets the eye by using these
women to score cheap
political point?
16. This policy lacks
economic thought or logic
and will accentuate the
country’s economic decline,
rather than its growth. Brazil,
China, India, Malaysia and
South Africa have all
witnessed spectacular
economic growth without
having to restructure their
currencies to higher
denomination.
17. Nigerians are yet to
come to terms with Sanusi’s
egocentric reform agenda.
Since Sanusi became CBN
Governor, it has been one
harsh policy after another.
Interest rate is still at double
digit level. The dusts raised
by Sanusi’s audit and
nationalization of banks are
yet to settle. Sanusi has
created huge unemployment
in Nigerian banks with his
vengeful reforms without
concern about their terminal
benefits.
18. Sanusi has paralysed
industrial development with
his unchecked harsh
economic policies.
19. We ask again: What is
Sanusi’s agenda for Nigeria?
The President and security
agencies should dig deep to
unearth this before he
plunges the country into
cataclysm.
SUMMARY BULLET POINTS
COST OF IMPLEMENTING
THIS CURRENCY
RESTRUCTURING IS ABSURD.
THE POLICY IS ILL-
CONCEIVED, ILLOGICAL AND
OF NO ECONOMIC BENEFIT
TO THE MASSES. IT IS A
MISPLACED PRIORITY.
THE N5,000 NOTE WILL
TRIGGER INFLATIONARY
TRENDS, AS COST OF GOODS
& SERVICES WILL INCREASE
FOR EASE OF TRANSACTING
WITH LARGE CURRENCY
DENOMINATION.
THE N5,000 NOTE WILL
CONSTRUCTIVELY LEAD TO
NAIRA DEVALUATION.
THE N5,000 NOTE IS
COUNTERPRODUCTIVE TO
THE CASHLESS ECONOMIC
POLICY.
THE N5,000 NOTE WILL
FACILITATE THE ACTIVITIES
OF BOKO HARAM & OTHER
SECURITY THREATS,
INCLUDING KIDNAPPING,
RITUAL KILLING & OIL
BUNKERING.
THE N5,000 NOTE WILL
EXACERBATE BRIBERY,
CORRUPTION & MONEY
LAUNDERING.
THE N5,000 NOTE WILL
ENTRENCH POVERTY &
WORSEN THE ALREADY POOR
ECONOMIC SITUATION IN
THE COUNTRY.
THIS POLICY PROVES
THAT SANUSI HAS AN
INORDINATE CODED
AGENDA, BASED ON
EGOMANIA.
In conclusion, we reject the
introduction of the 5,000
naira note and call on the
CBN to immediately discard
the idea and instead embark
on economic policies that will
provide growth and
development in all facets of
our national lives. If the CBN
refuses to harken to the voice
of reason, we will have no
choice than to prove to them
that Democracy must
continue to be government of
the people by the people and
for the people.
Thank you and God bless
Nigeria.

OTUNBA DINO MELAYE
Executive Secretary
Anti-corruption Network

#CONSENSUS 2015