i will have prefered they used one persons potrait on the money

Which one person will you have proposed? President Olusegun Obasanjo or Seun Osewa?

I think it's wise as they decided to choose one Hausa person and one Ibo person for a currency released during the tenure of a Yoruba Governor.

Seun:

Which one person will you have proposed? President Olusegun Obasanjo or Seun Osewa?

I think it's wise as they decided to choose one Hausa person and one Ibo person

Who is the Ibo person, please? There is no Ibo person on that currency- quite like calling a French man , a German because the latter has a higher population. He is Efik / Ibibio whichever you prefer.

On the news it was said that the Nigerian new 1000 Naira notes have been regected in Ado-Eketi and soon it will be all over Nigeria!! Some times last month, it was annocnced that the new note is now in circulation and soon after that we are getting some news that it is rejected. Some say it has no Naira note on it and so many opinions.
This is funny!!

heard they are recalling the note due to the error

Nigerians should ignore some of these errors. the government think they know much and have capable hands, if not how can they commit such grievous offence twice. the first was with the hundred naira note which had zuma rock in abuja.
it will be changed automatically by the cbn. but lets proof read before acting!

The fact is that you people are not getting mckaycee.

To me that 1000 Naira note is not necessary because it will soon terminate N5, N10,and even N20. l don't see the need to produce that N1000 note.

Guys, I am so out of touch with things going on back home, I felt a bit dizzy when you said the #1000 notes, now I read that the 5 bucks note has been erradicated, how will the poor survve this mess?!!!

The new note ain't no rush Job I just saw the note, My father has a lot of notes
from different countries and none of those notes have signs next to them
so the reason that the CBN left out the sign is not only to follow new trends
but also because putting the naira sign makes it quite unfashionable. Printing
the note in polymer means it will be quite expensive. Nigeria has to use its money
on education, health, reforms and other things not boasting with polymer notes
or making its notes the best in the world Nigeria isn't a rich country, that they can
be spending the peoples money for such issues. Peace Yo

I would love to see the new 1000 naira note too...it would be so kool!

1000 naira note? That just doesnt sound right! what is Nigeria becoming?

.....

its been out for some time now, still havnt seen it yet

I don't understand you niyoma. For crying out loud, you're asking what relationship there is between 1000 denomination and inflation! And you call that 'ignorance' even though you sort of went in a roundabout way to answer your own query with another ignorance: "I mean what can N1000 buy nowadays to be realistic?"

In a very unstable economy such as Nigeria's, the last thing to do is to introduce a higher denomination of her money currency. That is a desperate move that only reveals the greed of illiterate politicians (especially those begging for a 'third term'). If some are persuaded that a N1 000 notebill in the capital market at this time is good blood in the arteries of our economy, then wait until they introduce a N100 000 bill - afterall, the argument has all too often been 'it will make cash flow easier'. Rubbish.

The twin evils of corruption and inflation are not perculiar to the Nigeria case. However, one cannot completely divorce the connection between inflation and denomination of currency, and the recent example of Zimbabwe's inflation (9 June 2006 BBC report) should make us pay closer attention to this matter and understand that the introduction of the N1000 bill at this time is really bad blood. Sample this excerpt from the BBC link above:

"Last week the Reserve Bank issued a new 100,000 Zimbabwean dollar note (equivalent to just under $1), to accommodate rocketing prices." However, the reality is: "Inflation will continue to climb 'as long as the factors driving it are not addressed,' said Daniel Ndhela, an independent economic analyst."

Astute political leaders who understand the rubrics of a nation's economy are not seen desperately introducing higher denominations of their currencies, especially in the wake of political, social and economic instabilities. The factors driving inflation in Nigeria have not been addressed, and the entry of the N1000 spells further injury to our national psyche and economic acumen. What was really the driving force behind the new denomination- have we really thought about that? How many years ago were Nigerians greeted with the N200 and N500 denominations (and we are yet to fully recover from those)? Is that how any sensible country 'introduces' new currencies into their capital markets??

Anyway, I don't see what's wrong in having (deliberately?) left out the naira (N) sign in the new note. The fledging economies of the West and Europe that we're trying to imitate don't have their currency signs printed next to the figure-values of their notes, as long as the value of the currency is spelt out somewhere on the note. Anyone care about that could sample them in the links below:

United States of America 100 Dollar Bill: Front - http://www.banknotes.com/US384.JPG
                                                              Back - http://www.banknotes.com/US384R.JPG

Swedish SEK 500 (Five Hundred Swedish Kronor): http://www.banknotes.com/SE65.JPG  
                          (Fifty Swedish Kronor - Old Note): http://www.banknotes.com/SE53.JPG  

Perhaps, the most absurd design of currency bill I've seen to date is the 1918 West African Currency Board of One Shilling (Lagos, 30th November, 1918). How could a 'One Shilling' bill be "legal tender for the payment of any amount"?? (click and see it here!).

What is worrisome is that these higher denominations are threatening to phase out the smaller denominations in Nigeria; whereas, the economies we're trying to imitate retain their smaller currency denominations.

The factors driving inflation in Nigeria have not been addressed

You should go back to secondary school to read economics. Start here: en.wikipedia.org/wiki/Inflation

Oga Seun, thank you. How does your recommendation fault what I have posted?

There is nothing mysterious about inflation at all, whether it is in Nigeria or in Europe. It occurs because money is being created faster than the rate at which the economy is growing.

A little money is created by the government when it prints naira notes, and is destroyed when it withdraws dirty naira notes from circulation. However, most money creation occurs in commercial banks.

When you deposit 100,000 naira in a Nigerian bank, it is allowed to loan out as much as 88,500 naira of your money to someone else, while telling you that the money is "in your account". Now that person goes out to spend the money, believing he has 100,000 naira. When you are also pricing items in the market, you act in the belief that you have 100,000 naira "in your account". So 188,500 naira has effectively been created from 100,000 naira. In actual fact, this new money can ripple through the system until more than 800,000 exists in the system. In other words, prices can be more than 8 times higher what they would have been if there were no banks, or no loans.

So the inflation that money printing can cause is actually quite small, and in fact the government is trying to "reform" the financial system so they'll be more money creation by banks and CBN wouldn't have to print so much money.

I forgot to send you this link: en.wikipedia.org/wiki/Money_creation, which is better than my explanation.

Having thought of it a little bit more, yes, the introduction of the new naira notes will cause a small amount of inflation if the government does not withdraw an equivalent number of smaller denomination notes for each 1000 naira note that's injected into the system. But bear in mind that they can print an excess amount of even 50 naira notes to cause inflation. It's not about the denominations, it's about the policy. Too much money equals inflation.

The 1000 naira note is convenient for traders but, unfortunately, also convenient for looters. The note itself is not the problem. Would you support a government that bans motorcars because robbers can use them to escape?

Again, many thanks. Here's a little something of interest in your reply:

Seun:

Having thought of it a little bit more, yes, the introduction of the new naira notes will cause a small amount of inflation if the government does not withdraw an equivalent number of smaller denomination notes for each 1000 naira note that's injected into the system. But bear in mind that they can print an excess amount of even 50 naira notes to cause inflation. It's not about the denominations, it's about the policy. Too much money equals inflation.

So far so good - and perhaps you'd agree that's basically the gist of my argument:

4get_me:

Astute political leaders who understand the rubrics of a nation's economy are not seen desperately introducing higher denominations of their currencies, especially in the wake of political, social and economic instabilities. The factors driving inflation in Nigeria have not been addressed, and the entry of the N1000 spells further injury to our national psyche and economic acumen. What was really the driving force behind the new denomination- have we really thought about that?

"Policy". . . "factors driving inflation" - are we speaking two dialects here, or it's all a matter of nomenclature? Until the Government sits down and addresses these factors (or policies) in practical terms, our economic problems will be perennial. I have no problem with the introduction of higher denominations in the capital market; but doing so at this time is bad blood in our economic arteries. How is the Government addressing inflation and what policies have been implemeted with results to boost our confidence in a more viable economy as yet?

I think timing is crucial, as well the policies of concern to us so far in the discussion. Given those, I'd gladly welcome even the intro of N10,000 bill into the capital market.

I'll highlight a few things we should take note of,

*New rail route between Lagos and Kano
*about 450-500 mill for east-west roads
*25% increase in civil servant salaries
*laying off of 33,000 civil servants-with severance packages
*finally increase in the amount of printed money.

I am not an economist but this looks like a short term inflation disaster,due to government spending. This I assume will fuel growth in FDI especially if the naira strengthens or is relatively stable.-the CBN should lower interest rates to boost savings.This means that in the long term we have companies established,employing workers and the cyclical process starts again but this time as a result of consumer and industrial expenditure.-I assume that at such a time a decent salary would be about 75k for starter-white collar jobs of course.-then well have an acceptable GDP/capita as well as reduced inflation fluctuation. . .(I dint know the jargon)

If my argument is flawed please be kind enough to offer your views.

The 1000naira note can be easily forged. In fact its already being forged in Singapore, Japan, China, Lebanon and Indonesia.
Methinks they should have used polymer instead of the normal watermark paper. I heard a guy just came back from china with 200M naira smuggled in a jeep and deposited in in a third genration bank (bribed his way through the seaport and bank of course) and several people are towin his line. GOD help us.

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chaktty:
2000 is on d way.

God forbid

Who bumped this thread

Mehn but Nairaland sef the bring back memories oo. Oct. 2005!
I was still in Jss2

Ten years later...ghe ghen Chike graduates from univeristy.

Remember on that faithful day na untop road we bin lye down as seniors bin wan flog us na im I see one flashy note for one senior hand wey I never see before. Until boys com know whatsup na dollar I bin first think say de money o

[quote author=Seun post=75079]The faces on the note are Alhaji Aliyu Mai - Bornu and Dr Clement Isong. Note: Clement Isong seems to be an Ibo name, so there's no "marginalization" here. See http://www.cenbank.org/currencymgt/N1000.asp

No! Clement Isong is a Calabar name