The Oxford advance learners’ dictionary, the special price edition, defines money as what you earn by working or selling things, and use to buy things to borrow, spend, earning money coins or paper notes. Indeed, money is a major means for business transactions. The era of trade by barter had gone into extinction. The introduction of money to replace the old method of buying selling has facilitated trade in the world today. The Central Bank of every nation regulates and advises government on monetary issues affecting the nation.
Here in Nigeria, the Central Bank proposed a policy known as cashless society in bid to control movement of cash in the country. And again, to curtail inflation rate in the economy, Nigerians were convinced to accept the policy. And to some extent it is working. It has been officially introduced in Lagos and Bayelsa States. That was a welcome development as the manner in which some Nigerians carry huge cash with them was worrisome. One of the aims of cashless society was to fight corruption in the country. It is obvious that in Nigeria that only few people carry cash in bulk compare to several Nigerians who wallow in abject poverty. The Central Bank of Nigeria cashless society is working as many Nigerians now use Automated Teller machine (ATM), credit card, Banker cheque, or bank draft, e-payment, e-banking and cheque book etc.
These methods of monetary transaction introduced by the Central Bank of Nigeria are working as many Nigerians understand the importance of the system. It is clear that ATM card makes transaction easy for Bank customers. The e-banking ATM credit card, Bank cheque c-payment have contributed immensely to the success of cashless society policy. Nigerians are coping with the policy, despite some demerits and difficulties in some occasion when there is network failure of the system.
In Nigeria, when people are about forgetting the ugly experience of the past the same policy makers would introduce anti people policy to deny the people their rights. The central bank of Nigeria under the leadership of Lamido Sanusi, the Central Bank Governor went on aggressive campaign to seduce Nigerians to accept cashless society policy in 2012 without much contribution from the general public.
The rate at which the Nigerian currency fluctuates in money market is alarming. For a decade now the exchange rate of naira to dollar is always in an unstable rate; and the rate is always between 150 naira to a dollar. It has not come to even 140 per dollar. But the Central Bank of Nigeria keeps selling the monies. The
appreciation of naira in the money market does not stay for good two days in exchange rate. Nigeria is the biggest country in Africa and not the biggest economy in Africa. The Central Bank policy does not consider the masses as beneficiaries of its policies.
Some years back during the military era, there was introduction of one naira coin in the commercial market. Today where is the coin? Some good reasonable billion of naira was spent on that project. Even commercial banks do not accept coin for transaction of payment now in Nigeria. Indeed, there was never a time when Central Bank announced the withdrawal of coin from the society. There was no apology for wasting the billion naira and non-usage of the one naira coin in Nigeria.
In Nigeria, there is no price control agency in action. Anybody can control the price of his commodity to the detriment of the public. And the Central Bank keeps on floating policies that it can man. There is need for the central bank of Nigeria to concentrate on the cashless society policy than to jump in to another minting. Central Bank of Nigeria is not a political organization for sympathy gesture of who should benefit and who should not benefit.
Indeed, the planned introduction of Five Thousand Naira (N5,000.00) note denomination and changing five, ten, twenty to coins is another irony of the cashless society policy of the Central Bank of Nigeria. The same Central Bank that made itself agent of integrity is now turning things upside down. This is a deception. Before now no Nigerian could carry Two Million in his pocket and remain comfortable. But with the introduction of five thousand naira some people would carry ten million at ease without pressure in their pockets, not bags. So where is the cashless society? May be the cashless society is only for the poor Nigerians who may have access to money to carry in bulk.
The new introduction of coins again would cause inflation and also cause extinction of five, ten and twenty. No matter the economic explanation and benefit to Nigerian government, this is anti-people policy that will impoverish many Nigerians. The highest denomination which is one thousand cannot buy a bag of cement in Nigeria. The Central Bank Governor does not mean well for the masses in Nigeria. He is working for the ruling class. The same man who vowed to control the movement of cash in Nigeria is the same man promoting corruption.
A rap of five thousand notes of one hundred pieces from bank is five hundred thousand naira. The policy is about facilitating looting of public fund by few individuals who have access to it. In 2013, the Central Bank of Nigeria should reconsider its decision to five thousand naira and coins into market. It is not a good omen for 2013 for the general public.
Where is the one naira coin? It will be a great fallacy that five naira, ten naira and twenty coins would survive in Nigeria. Introduction five thousand denomination cannot improve our economy. Minting new denomination can not support the economy of Nigeria rather it will promote inflation, corruption and social vices. The naira is depreciating everyday. The Central Bank of Nigeria should embark on man power development. No matter the juicy explanation to convince the public to accept, in the long run the negative effect would boomerang on the innocent Nigerians. Mr. President, Dr. Goodluck Jonathan should not, in a way accept, rather he should jettison the policy. This policy would turn the Nigerian masses against Mr. President this policy will kill businesses in Nigeria.
The Central Bank should build capacity for giving loans to entrepreneur in Nigeria. The introduction of five thousand naira denomination is anti cash less society policy of the same Central Bank of Nigeria.
Indeed, money detects the lifestyle of a people. Turning denominations to coins is making atomically irrelevant in transaction in Nigeria. This Central Bank should understand the stigma on coin in Nigeria. The Central Bank of Nigeria should shelve the policy. A stitch in time saves nine.
Frank Eneawaji Ogwuonuonu
08028901682
