Phase out higher denomination notes to strengthen Naira, Registrar tells FG

Mr Olumide Adedoyin, the Registrar, Chattered Institute of Treasury Management (CITM), has urged the Federal Government to phase out higher denomination notes, such as the N1000 and N500 Naira notes, to strengthen the Naira.

He said N1000 and N500 notes were more susceptible to counterfeiting, and illicit financial activities, hence, they should be phased out in a bid to reform the nation’s currency.

“To reform the nation’s currency, there is need for the Federal Government to implement a currency reform that involves demonetisation or gradually phasing out higher denomination notes, such as the N1000 and N500 notes.”

Adedoyin commended President Bola Tinubu for taking proactive steps in addressing flagrant abuse of the Nigerian currency and by extension, the Nigerian economy.

He said this was sequel to the directives to the Central Bank of Nigeria (CBN) on the total ban of the use of dollar in the nation’s economy as a means of transaction.

He said such step was geared towards proper realisation of the value of the Naira.

He urged the government to embrace cashless policies and promote the use of electronic payment systems, such as mobile money, online banking and electronic fund transfers.

According to him, this will help to reduce the demand for physical cash and limit the circulation of higher denomination banknotes.

He called on government to enhance financial inclusion initiatives that would bring more people into the formal banking system, adding that it would reduce the reliance on physical cash.

He added that it would make it easier for the government to manage currency supply.

Adedoyin stated that to further strengthen the Naira, there was need to implement and enforce robust anti-corruption measures to reduce illicit financial flows

He said it included money laundering and other illegal activities that contributed to the devaluation of the Naira.

He restated the need to promote economic diversification to reduce the country’s reliance on oil exports and enhance foreign exchange earnings from other sectors such as agriculture, manufacturing, mining and services.

“It is important to note that these measures should be implemented in a coordinated and holistic manner to address the underlying economic and structural challenges facing the Nigerian economy.

“Also, careful consideration should be given to potential social and economic impacts on the population, to ensure a smooth transition and acceptance of the proposed reforms.”