Is Central Bank of Nigeria, flying a kite?

 

The Central Bank of Nigeria have denied that they want to indirectly redenominate the Naira by introducing N5000 Notes.

In making that denial, the CBN hinted

that they want to turn N100 to a coin.

Pray what do you make of that?

It is bad enough that our children cannot make sense out of N1 and the only notes they know begin from N50.

The CBN does not plan to introduce N5000 notes but they want to withdraw N100 note.

How does that sound?

Indirectly, the CBN wants to accelerate Inflation.

For now it is the big supermarkets who use coins. Our coins are so heavy that they are not user friendly.

In the UK and US, their one pound and one dollar are in use and they are not coins.

We have managed not to have N1 note in use. Our smallest notes at N50 and N100 are going to be withdrawn.

Chukwuma Soludo as CBN governor toyed with the idea of redenomination at a time Ghana redenominated their Cedi..Eventually it was dropped. I dare say that redenomination only makes sense in a period of hopelessness when there is runaway inflation.

We can do better. We should not give in to despair.