introduction of five thousand naira note and coining of the lower
currencies if implemented will generate social anomia, economic
dislocation and unquantifiable deprivations to the poor masses who are
already on the edge of existence. He spoke to CHARLES ADINGUPU.
The decision by the Central Bank of Nigeria (CBN) will certainly lead
to hyper inflation. From experience, whenever such exercise was
embarked upon, items hitherto sold at the price of coins will jump to
naira price or currency note because nobody, either seller or buyer
wants to transact business with coins. So, if the currency note is two
hundred naira (N200), automatically, the price of the least sold item
will invariably be sold at two hundred naira.
In Nigeria, any commodity that goes up certainly will never come down.
I'm surprise that the CBN is coming with such policy at a time when
Nigerians are suffering. I believe Nigeria is too big nation where
anybody will just come to perform any kind of experiment. I think that
is what the CBN is doing right now. They just want people to celebrate
them.
Barrister Bamidele Aturu
They concoct obnoxious and fanciful policy and throw it at the
Nigeria's economic environment even when the conditions are not
suitable. For me, I think that is quite despicable.
At the moment, what happens to the poor. Every developing economy must
have the poor at its heart. They cannot be at its heart. They cannot
be formulating policies that will throw the teeming poor masses out of
jobs and that will create inflation and then create an environment for
crime to thrive.
Anyway, I'm strongly oppose to it so much so that I don't even know
how best to express my anger towards it.
But does the CBN Act really empowers the Governor to implement such policy?
My own position is that even though the CBN Acts grants the Governor
considerable autonomy, that is not a licence to do things that will
jeopardise the state of Nigeria knowing that such policy will wipe
them out of existence, they reserve the right to wipe the CBN Governor
out of existence by removing him from him from office. Though, I'm not
interested in the legalistic argument some people are currently
canvassing. Please let us not be legalistic about our economy.
This is all abut political economy. So, even if he says he will make
the least denomination one billion naira, are we going to allow him to
do that? I'm saying that whoever appointed him in the first place
either the Senate or Presidency should kick him out (Mallam Sanusi) of
the place because the man is creating a lot of hardship for the
Nigerian people and truncating development.
How can you reconcile Mallam Lamido's bank reformation and this
present planned decision of creating of N5,000 note?
When the tsunami hit the banking industry, I publicly issued a
statement supporting what the CBN did. And I want to state it loud and
clear that I quite appreciated the CBN hierarchy for that timely
intervention in the banking sector. Also, we cannot allow a group of
people to help themselves with depositors' funds under any guise.
Hence I supported it.
However, I cannot go ahead to begin to support everything the CBN
does. As I said earlier, and as I told some people, I'm beginning to
now watch the CBN very closely. I thought that the CBN was operating
generally from a progressive ideological position but I'm now not sure
of that.
What are the implications of this policy to low income earners in
particular if implemented?
What this people wants to do is wipe out the poor people out of
existence. Hence we will not allow this policy to stand, because
allowing the policy to stand is tantamount to wipe out majority of
Nigerians who are mostly the poor. Definitely it will create a
situation where the poor cannot send their children to school, pay
medical bills and even move from one place another as freely as they
should and they are now subjected to all sorts of deprivation or the
other.
And again it will encourage corruption as politicians and other
Nigerians can easily move huge amount of money without hassles.
I think that at this time of development, this policy is not called
for, it is unwarranted, indefensible and cannot be allowed. If the
President cannot advise the CBN leadership, let the Senate remove them
for constituting themselves as obstacles to peace and progress to the
people of Nigeria.
But what could be in the mind of the coordinating minister at the
moment over this planned policy?
Well, you know that the coordinating minister has no power over the
CBN if you look at the CBN Act. I'm beginning to be worried. Do we
give so much autonomy to people without also allowing legislative
oversight. Some level of popular control, Then of course you are
giving power without responsibility.
I support some level of autonomy but anywhere in the world, you cannot
have a CBN that just do anything it just wants to do at large. For
now, I think the coordinating minister is powerless in this case and
in any case these people are all in the same ideological boat. They
are all members of the economic management team. She has not publicly
oppose the idea at the moment.
Are we sure they are not working in tandem?
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