Cashless Society abi Moneyless Society

As a kid I knew the lowest denomination of naira in notes as 50kobo and the highest as N20. This was prior to the introduction Structural Adjustment Programme in 1986 and its damning consequences such the aimless devaluation of the naira. In 1991 when N50 note was introduced and N1 naira coined, it seemed exciting initially. Until over time it became apparent that any denomination of that is transformed to coin, rapidly loses its total value. Today, no one gives you a change of 50kobo or even naira, that is if there is an item worth that amount.

However, the attendant inflation that trailed the Structural Adjustment Programme made this seem normal. The truth remains that no matter the rate of inflation we had experienced we still had commodities that cost the price of the lowest denomination in note.

The question is: what is the motive behind this action? The CBN talked about the Cashless Society theory and I ask how this will aid it. Is it not a theory targeted at reducing the level of cashflow within the society? Then what denomination should be more available, lower or higher ones? What does the CBN and its Governor seek to achieve by action? If they in their high-lives they think the list item in Nigeria, well let them know that we still buy sugar for N10 and even pure water and small candies at N5. The result of this action would rather leave Nigerians with funds insufficient to acquire their daily sustenance rather than reducing the amount of raw cash they carry.

Moreover, the huge sum spent on production of coins in 2005 is yet to be justified. The Senate and indeed the entire Parliament should not only suspend the implementation but should stop it entirely. Whatever the intent of this plan, adverse are its imminent consequences. The only country this plan can be modeled after is Zimbabwe.

We must reject this delusionery plan because of the attendant difficulties that will trail it. Moreover, it will send the wrong signals within and outside this country and ridicule our dear nation. The Governor shouldn't worry about leaving a legacy, he is a one who hardly be forgotten. However, if he thinks this one such policies where he must stand firm on his action, then I think its time for him to return to the private sector.


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Articles by Edmund Soge