6th September, 2012
The Institute of Chartered Accountants of Nigeria, ICAN, has slammed the Governor, Central Bank of Nigeria, CBN, Mallam Sanusi Lamido Sanusi over the proposed introduction of N5000 denomination into circulation early next year.
In a statement issued Wednesday, ICAN said though the introduction of N5000 has it advantages, the disadvantages far outweigh its benefits as it will alter the price index of production and lead to the disappearance of smaller denominations and the coin introduced.
“The extinction of these smaller denominations will negatively impact the buying capacity and habits of low-income goods and services will be priced above their levels,” ICAN observed.
The institute advocates that the CBN should strengthen the purchasing power of the naira in relation to other currencies like the US dollar, the British pound sterling etc.
ICAN said as an import-dependent nation, Nigeria does not stand to benefit from devaluation when it runs a mono-product economy.
It noted that in 1973, two naira exchanged for one British pound sterling and one naira was exchanged for 30 American cents but today one pound exchanges for N246.31 while a dollar is equivalent to N157.50.
ICAN also noted that the introduction of N5000 note will negate the cashless policy already introduced in Lagos which was expected to be implemented nationwide in 2013.
It also observed that the idea will negate the gains recorded in the Anti-Money Laundering Act, adding that if the international community noted that Nigeria is not serious about anti-money laundering war, the nation stands the risk of being sanctioned.
—Moyo Fabiyi