ABUJA — Early next year Nigeria will introduce coins to the economy and a 5,000 Naira bill, worth just over $30 dollars
Although government officials say the move will save the country millions of dollars; some analysts argue the larger bills will increase corruption.
Modern countries need coins, says Ugo Okoroafor, Director of Corporate Communications of the Central Bank of Nigeria.
“Let’s not look at Nigeria now. We must revamp our currency to keep up with the times. We are moving into a society where there will be vending machines as well as parking meters. The rail lines are coming back to life. These are areas where coins are very important. The new 5,000 Naira bill will mean fewer bills in circulation, saving Nigeria millions of dollars a year in transport, storage and management of cash. Currently the highest currency denomination is 1,000 Naira".
But not everyone agrees. Some critics say the 5,000 Naira note will increase inflation and encourage corruption and money laundering. Cash will literally be moved five times faster, making it easier to steal or hide large quantities.
Clement Nwankwo, the executive director of the Policy and Legal Advocacy Center in Abuja, says “I think it’s a very bad idea. If you want to promote a cashless economy, you can't create currencies of higher denominations.”
Other analysts say the new currency will not alter inflation or promote corruption, pointing out that big-time swindles in Nigeria are carried out in dollars, not Naira.
1. Early next year Nigeria
2. Coins and a 5,000 Naira bill
3. Corruption
4. Director of Corporate Communications of the Central Bank of Nigeria.
5. To keep up with the times
6. Millions of dollars a year in transport, storage and management of cash
7. Because it will increase inflation and encourage corruption & money laundering
8. Yes, it will be easier to steal or hide large quantities
9. No, it won't alter inflation or promote corruption
10. Perhaps
adapted from VOA
