New notes and coins

February 28 marked the day new currency notes and coins were introduced in Nigeria. And it was high time because the lower denomination notes in circulation are so mutilated that people had started rejecting them. The banks offered no help as their supply of new notes from the CBN dried up completely.

We now know the reason as we welcome these new notes and coins. The notes are in 50, 20, 10 and 5 naira denominations. As for the coins, it was a big relief as people have started forgeting them completely. And the issue of getting your balance for any transaction does not arise at all. The new coins would therefore definitely ease transactions in several ways. As for bringing down inflation as some people claim, I have my doubts.

However these new notes are generating a lot of controversy in the North. Islamic groups have noted the absence of the inscription in Arabic that tells the denomination of all the notes for those who can read Ajami writing. They are wondering why the inscriptions were removed and generally see a conspiracy against Islam in the action by CBN.

Well, I refuse to join these groups largely because Chukwuma Saludo, the CBN Governor had made his intention known along time ago. He went round the Palaces of all the Emirs and the Sultan where he minced no words about the removal of the Ajami script. No one among these important personalities protested. Again the deputy governor, Shamsudeen Usman went to media including the BBC Hausa services and said pretty much the same thing. Again no one protested. Is it now that the notes are out that they are knowing about all these things? Is another case of Fargar Jaji?

At any rate I do subscribe to Saludo’s argument that allowing the Ajami inscription would tantamount to serving the interests of Muslim Hausas only. Not Islam mark you, because Yoruba or Ibo Muslims can not read the Ajami writing at all.

In this instance I support Saludo. However I do not support his argument for the banking reform at all. It is preposterous and illogical to claim that only mega banks are capable of transforming the Nigerian economy. More on this later.

# posted by hajia @ 12:03 pm