seunlayi:
soludo proposed this during the last tenure of OBJ, it was already announced but the whole senators and Reps kicked against it

Omololu2121:
he didn't promote it during the tenure of OBJ,but during the tenure of yaradua.

Even if we do all wat the op says,the naira will still lose value against the us dollar cause of our weak economy.

Ghana did it,and it has not really change anything

sparko1:
Blood of Zachariah,

Did i see this correctly:



Is that 507, thousand?

Let me begin to pack my load, just imagine, if someone dash you like 100 Jordanian Dinar oboy you are a millionaire!

fados4sure:
Op I don't know where you got your statistics from that those are the top performing currency.



It may interest you to note that the three top performing currency is USD, EURO & JAPAN YEN


Note that Japan highest currency is 10,000Yen but, their currency is d 3rd performing currency.



It may also interest you to know that ¥1 #1 but the value of ¥1 is bigger than #1



For example, in Japan, one jean trouser is ¥150 where as in Nigeria, one jean trouser is #3000



Are you getting it now? where as ¥1 = #1



What the government needs to do are:



1, Increase export and reduce import


2, Increase foreign reserve

3, We shouldn't be import dependent


4, Put qualified person as CBN Governor, Minister of Finance & Minister of Budget


If the above are done, I can assure you that your Naira will have value again but if your government fail to do the above & choose to redenominate the naira to probably remove #500 & #1000 and introduce coin without the above, the currency will still fall back to where it was

Soulless:



Hope you know that Ghana's currency is more valuable than naira?

Samleen:
This is a very simple truth and need to be put into consideration.

Money is a value created in our mind and ascribe to currency notes and coins.

These currencies in themselves have no value except for the values we created in our mind for them.

The value of a country currency is a measure of its productivity. It has nothing to do with denominations of the currency.



Edited:
To those economics and financial Gurus calling me names and miscontruing my writeup, you are weldone!

Maybe you people need to read my write up again and consider what you wrote in your comments.

Everybody is contributing their opinion here to find a way forward for the Nigeria economy, some people are here derailing the thread with their You-are-not-an-expert comments.

Samleen:
This is a very simple truth and need to be put into consideration.

Money is a value created in our mind and ascribe to currency notes and coins.

These currencies in themselves have no value except for the values we created in our mind for them.



Edited:
To those economics and financial Gurus calling me names and miscontruing my writeup, you are weldone!

Maybe you people need to read my write up again and consider what you wrote in your comments.

Everybody is contributing their opinion here to find a way forward for the Nigeria economy, some people are here derailing the thread with their You-are-not-an-expert comments.

Soulless:



Hope you know that Ghana's currency is more valuable than naira?

buffalowings4:

Fulani on rampage

Forceup:
People are farming... The government just needs to support

them with infrastructures and create cheaper means for the chemicals they use..

Almost all the households in benue owns a farm,

and benue isn't even the largest farming area in the North yet.. There's Ebonyi coming up too in the east.. But over the years, there has been a rapid increase in the prices of farm things(like every other thing in the country)..

In summary, people are farming..

Olumyco:


No Sir its not.

It is true that 1 cedis = 80 naira but this is just the effect of recalibration (redomination). This is the full analysis

10, 000 cedis = 80 naira

I put this up so that you will know the original value. Ghana removed four zeros from their money. It only refaced the numerical stance of their money but did not affect its value.

The value of a currency is in its purchasing power. What it can do in the market.

80 naira can buy more tins than 1 cedis. I know much about this (first hand tins)...

Exchange rate many a time can be misleading thats why its good to know the history of every currency and its purchasing power plus the economy of the country controlling the currency.

As regards what the OP wrote... he tried and I can only say his method works best when our economy becomes healthy and infact we do not need to discontinue them manually.... naturally based on economic principles they would be discontinued. We must all know that when the economy is bad and the price of tins goes up... (inflation) it means higher denomination would be highly demanded... that is why we have all these denominations. When the price of tins go down... lower currencies would gain more value and if this continues for up to like 10 years (stability) then naturally 1000 naira notes would not be much demanded and the circulation of it would reduce and as time goes on the Govt. can decide to face it out.. like this 500 euro that EU is planning to remove.

The idea of OP is applicable in the area of cost reduction in printing these notes but still the economy needs to be healthy for it to work. In a situation where we have lower currency and there is inflation/high demand for money it means the Govt. would have to print more lower currencies... and this will come at a high cost. Like for instance lets say we dont have 1000 naira notes and the highest is 100 naira note and now there is inflation.....if Govt increases the printing of 100 naira from 5 to 10 and each cost 10 naira to print it means the govt will be spending 1000 naira printing ten 100 naira notes. And when this happens the Govt. will then result to higher denomination to save cost. Now printing a single 1000 naira notes would just cost 10 naira (same amount)... this means Govt. has saved 990 naira. Note this that when there is no inflation and the economy is good then higher denomination is not needed / would fade out with time you can see this with countries that have good economy.

Also coins usage in a country like Nigeria might not work. They re-introduced coins around 2007/2008...pple detest it... they dont want to spend it. This is human behaviour and it is psychological... most countries still using coins have been using it right from the beginning (like when they started their currency/independence). This is different from Nigeria we were using it from scratch but suddenly it fizzle into the tin air and for sometime we didnt use it and now you are reintroducting it.. how will pple adapt... and by character most Nigerians are proud and live big... they wont like such a tin... in my schl when the coin was reintroduced students dont want to collect the money as 'change' from bus conductors... though there is no doubt that the Govt. too have there own too in it... they seem not back the coin idea strongly... probably we would have adjusted now if they have enforced it but well Nigeria will always be Nigeria.... we are unique

Lastly, many people have talked about exportation... that we shud export more than we import...then let me say this that what you are exporting too matters if your economy must grow sporadically. We export tins in this country many of us might not know... go and check you will see that we are really exporting so many tins but our problem is that we export too many raw materials. Finished goods have more value than raw materials. Infact the moment you are processing a raw material it is said that you are adding value to the material. If we can be refining our oil, processing our cocoa, and so on our return on exportation will increase and the price of tins would be cheap in the country. Also fixing our light issue will help attract foreign investors.. exporting technology too will helps greatly. There is nothing stopping us from manufacturing our phones, laptops etc. Then we need to develop our hospitals and tertiary institutions to high standard like those in abroad so that pple will not be going abroad to go and be depleting our foreign reserve.... and so on.
My prayer is that God will help Nigeria and give us a good leaders.

Thanks

Samleen:


Sir,
Good sense of humour you have. Keep it up! And thanks for the observation.

that was just a typographical error

omokoladejames:
Like what Ken4Christ said, even if the government stops printing higher denominations, that would not make the naira strong.

What can make the naira strong is if its purchasing power increases. There are more than one factor that increases the purchasing power of a currency but one of the major factors is increase in the productivity level of the country. In simple terms if the productivity level of a country increases, the demand for money will increase thereby causing prices within the country to fall and the purchasing power of the money to increase but this is only valid if the supply of money does not increase.

So even if the government removes 1000 naira from the system but they continue printing 100 naira like say na water, that would not stop the person in the market from charging 15,000 naira from me, it would only mean i would have to carry a lot of 100 naira with me.

But imagine if it becomes alot easier and more profitable to grow rice in Nigeria(by government initiative,technology etc), more people will start growing rice, also if the price of the nylon that they use to package the rice reduces because of increase in nylon manufacturing and also if the cost of transportation of the rice from the farm to the city is reduced because of reduction in fuel cost etc, eventually all this cost reduction will reduce the cost of a bag of rice in the market to lets say 4000 naira. Now if all other production of goods and services increase like this and the government stops printing money like say tomorrow no dey and no one person is given monopoly over any particular industry,then generally the overall price of things will fall, which means you will need less money to buy things. If you dey use 500 naira to buy plate of rice before, because of the general fall in price that 50 naira wey no fit buy you better pomo before go fit buy you full plate now. Its value(Purchasing power) has increased, so you won't even need to carry around 1000 naira in your pocket because it will be too much thereby making the need for 1000 note obsolete.

In terms of the exchange rate of the currency , there are a lot of factors to consider like economic growth,political stability, debt level, interest rate etc. But i believe it all starts with economic growth as i tried to explain earlier because remember our modern currency has no value on its own, its value comes from how people much people trust it's government and its economy. Ghana's currency is better because investors believe ghana's economy is better and alot stabler than ours. If not for the oil and other potentials wey we get, with all the rubbish wey our government dey do since, our currency suppose don worse pass Zimbabwe own by now. But we thank God.

So bros I believe first things first, we need to increase our productivity level to cater for our needs(which will reduce unnecessary excessive importation) and also boost our exports.

Just my opinion but I stand to be corrected

zinaunreal:
the guy is of no relevance to this topic

buffalowings4:


Can you explain this?

Jorussia:
This one na beer parlor economics.All we need to do is invest massively in infrastructures to discourage importation.

nextstep:
Nice one and a decent argument, except of course that there are also strong economies with high denominations:
Japan: 10,000 Yen
Europe: 500 Euros
India: 1,000 Rupees
Russia: 5,000 Rubles
Korea: 50,000 Won
Mexico: 1,000 Pesos

As Ken4Christ said: "The major reason why out currency is low in values is because Nigeria is not a producing country. We import virtually everything."

All our troubles - even corruption stems from this. The only way for most people to get stupendously wealthy in Nigeria is control/contact with virtually the only source of foreign exchange - oil. And since it's so easy to control oil money when you're in government...

By the time we buy anything, so much value has been added by the manufacturing countries, with zero-multiplier effect in Nigeria the consumer. Everybody in the value chain in China (for instance) adds their profit and circulates the money within the country several times. In Nigeria's case, oil is exchanged for consumer goods and there's no circulation of that money once it leaves.

Take the case of a rechargeable lithium polymer battery (it's in cell phones, power banks, laptops, flash lights, etc). Nobody in Nigeria benefited from owning a lithium mine, or a smelting plant, or slurry making, or machine tooling, or anode production, or casing, or assembly or even packaging. These are all industries that benefited from that battery being made and sold. That's a lot of people employed at different skills, in different capacities, multiple times within a country, for one battery. So a Nigerian consumer comes in with oil money (at the very low end of the value chain) to buy a battery (at the very high end of the value chain). There's NO WAY your currency would get strong, no matter the denominations.

The other oil countries on the list that appear prosperous are artificially so because they have much more oil per capita than we do. If Nigeria had as much oil as Saudi Arabia (it has about 1/4 the production), it would still need to use that for is much larger population (6 times as many people), which means no matter what, based solely on money earned from oil, individual Nigerian buying power can only be 1/24 that of a Saudi. It's even more skewed if you consider Qatar (less than 3 million people). These are not productive countries by any stretch of the imagination, and as the world increasingly moves away from oil and natural gas, these countries will not be able to import the goods and services they enjoy today if they remain solely natural-resource-based.