DTaj: Some of us deliberately post on Nairaland on very few occasions; the reason being that there is so much hateful venom, largely fuelled by ethno-religious sentiments on major national issues, even when such issues are so unrelated to ethnicity or religion. Also, many Nigerians are generally 'experts' in so many things on which they don't have any idea, or those in which they have the most little knowledge.
Every Nigerian is a football coach, they know the best playing position and they won't allow the coach to do his job. We are the 'best economists'; we won't allow the Minister of Finance, National Planning, CBN Governor, Chief Economic Adviser to the President, etc to do their job. We are the best 'structural experts'; we hardly allow engineers, builders, town planners, etc to do their job.
And again, we are so pathetically ethnicity-biased. It is even sad that the 'educated younger generation' is the worst culprit.
My posers:
1. Did you know that the CBN has a Board? The 11-man Board has 5 Executive Directors (Sanusi and his 4 Deputy Governors) and 6 Non-executive Directors, namely: Dr. Joshua Omuya (the renowned author), Haliru Mohammed, Stephen Oronsanye, Danladi Kifasi (Permanent Secretary, Federal Ministry of Finance), Mr. Jonah Otunla (Accountant General of the Federation), and Prof. Samuel Olofin.
2. Did you know that there are seasoned professionals, Economists and related experts on the 28-man National Economic Management Team (NEMT) headed by President Jonathan which approved the new N5,000 note?
They include the Minister of Finance (Dr. Ngozi Okonjo-Iweala), who is the Coordinator; Chief Economic Adviser to the President, Prof. Nwanze Okidigbe; President Nigerian Economic Society, Dr. K.S Adeyemi; DG Budget Office, Dr. Bright Okogu; Minister of Trade, Dr. Aganga; former CEO of IBTC, Atedo Peterside; Minister of National Planning, Dr. Shamsideen Usman and former CBN Deputy Governor and CEO of NAL Bank; Minister of State for Finance and former Executive Director at First Bank, Dr. Yerima Ngama; DG Debt Management Office- DMO-Dr. Abraham Nwankwo?
3. Did you know that aside from their membership of the NEMT, the Chief Economic Adviser to the President, the Minister of Finance & Coordinating Minister of the Economy, the Minister of National Planning, all of whom are professional Economists (one of whom was a former bank CEO and Deputy Governor of the CBN), were ALL consulted by the President before the N5,000 note was approved by the President?
4. Did you know that this much vilified Sanusi is the most democratic CBN Governor there has ever been in recent years?
5. Did you know that Sanusi introduced an Annual 3-day full Retreat every December for the Bankers' Committee (members being all bank CEOs and CEOs of all discount houses) since 2009 when he took the reins?
6. Did you know that this same Bankers' Committee under the leadership of Sanusi organizes a full one-day Quarterly Retreat for the same people stated in (4) above?
7. Did you know that during these 2 events stated in (5) and (6) above, topical issues affecting the banking sector and the larger economy, and so many related issues such as power, agriculture, financial inclusion, manufacturing, economic empowerment, etc are discussed and actual deliverables and timelines are determined (and reviewed at the following session)?
8. Did you know that the regular Bankers’ Committee meeting that bankers had always known has never been so engaging and of serious impact as it is in the Sanusi era? Issues such as biometric identification for bank customers, shared services for banks to lower their cost of funds which could impact lending rates, financial inclusion, banking sustainability (and provisions/policies for guiding against environmental degradation, especially in oil and gas, agriculture, and power) are being well-driven (with timelines and deliverables).
9. With my experience with the last 4 CBN Governors, the CBN under Sanusi was the first to practically institutionalize 'Exposure Drafts' for major policy issues affecting the banking industry? 'Exposure Drafts' are drafts of major policies and regulations which are forwarded to all bank CEOs and other stakeholders for their comments and input before final release, as opposed to the old practice of 'rolling out' such regulations and ramming it through the throats of banks as done under previous Governors! Under Sanusi, discussions at these sessions are deep, incisive, and no holds-barred.
11. Under Sanusi, and never during the tenure of any past CBN Governor, the CBN meets ALL banks’ Chief Risk Officers (CROs) quarterly, with a view to preventing the mistakes of the recent past. These meetings are focused, frank, and of high impact.
10. I have sat at Bankers' Committee sessions indicated previously under past CBN Governors, and I can confidently state that Sanusi's handling of the sessions is far ahead of his predecessors in terms of content, approach, delivery, composure, mutual respect, and democracy (inclusiveness).
11. The Monetary Policy Committee (MPC) of the CBN has 11 members aside Sanusi, including cerebral and well-respected Economists such as Dr. Doyin Salami of the Lagos Business School. Other members include the 4 Deputy Governors (Dr. Sarah Alade, Dr. Kingsley Moghalu, Alh. Sulaiman Barau, and Mr. Tunde Lemo), Prof Sam Olofin, Prof. Abdulganiyu Garba (Prof. of Economics, ABU Zaria, and a foremost member of African Economic Research Consortium- AERC), Mr. Ochi Achinuwu, Mr. John Oshilaja (expert in Public Finance & Financial Markets Developments in Emerging Markets), Dr. Sheu Yahaya (Executive Director, Africa Development Bank- ADB), and Prof. Chibuike Uche (Prof. of Banking & Finance at University of Nigeria, Enugu Campus).
Salami, Oshilaja, Garba, Yahaya, and Uche are specifically charged with Macroeconomic Policy, Financial Markets, Monetary & Fiscal Policies, Developmental Economics, and Banking & Finance, respectively. The Salami, Garba, Olofin, Uche and Oshilaja I know will and can) never be stooges on the MPC!
In the past, former CBN Governors brought their agenda to MPC meetings and their decision was final. Under Sanusi, members argue and disagree with him on any item on the agenda. In fact, sometimes, Sanusi gets out-voted by other members, including his Deputy Governors!
And to cap it all, all MPC members (including Sanusi) personally vote on major decisions and also type their own input at the meeting and forward to the MPC Secretariat immediately after the meeting. This forms the major part of the MPC Communiqué which is usually fully published in the newspapers and on the CBN website the following morning after the MPC meeting! Nothing could be democratic.
12. No matter how much hatred certain people have for him, largely based on morbid ethnic considerations, well-informed professionals, especially among bankers and other stakeholders, will agree that HISTORY WILL BE KIND ON SANUSI, because he is competent, and focused. He may be vocal and controversial, as I am aware he had always been back from his days at King's College Lagos, where I was told he was the 'smallest' but 'most vocal' in class, but you cannot impugn his integrity, scholarship, firmness of thought, and professionalism.
Sanusi couldn’t have headed Risk Mgt at UBA as DGM, and become the Executive Director in charge of Risk Mgt and later GMD/CEO at First Bank, Nigeria’s biggest bank (which is clearly the market leader in the past and now), without being competent!
13. To appreciate Sanusi, let us take an objective course of study. Let us speak to several people who have worked with him at UBA and First Bank, and those who work with him currently. When some clowns talk about ethnicity and religious bigotry and Sanusi in the same breath, those who know him will simply have a hearty laughter. So many Nigerians, especially those who make ignorant remarks about Sanusi, do not know the man- AT ALL...
The spokesman of the Ekpo family stated when asked about the implication of the new N5,000 note: 'I am an Engineer, I am not an Economist; let the Economists discuss that issue as they have full grasp of the issues. All I know is that our family is grateful to Government for the honour on our grandmother'.
To rabid commentators, I have no special interest in this matter. I have met Sanusi only on an official capacity (as described above and in my comments elsewhere online) but I know people who have worked (and who still work) with him- most of whom are not Muslims, not Hausa-Fulani, not Nigerian.
Also, I am not Hausa-Fulani, and I am not a fan of the Federal Government!
The time to kick ethnic hatred from our hearts, especially from the hearts of our youths- the leaders of tomorrow- is NOW! Tribalism and mutual ethno-religious hatred is a major reason for where we are today as a nation…
God bless Nigeria!!!

N5000 Note: ‘Wrong Step Down Slippery Slope’
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Saturday, 15 September 2012

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Sanusi Lamido Sanusi, CBN governor
Being the outcome of a research by eminent scholars led by Prof. Ademola Oyejide, a University of Ibadan Professor of Economics and an expert in Monetary Economics and International Trade. The research was commissioned by Obafemi Awolowo Institute of Government and Public Policy, Lagos.

1. Introduction
It has been announced that a new currency note with a face value of five thousand naira (N5,000) will soon be introduced into Nigeria’s currency system. This raises several important policy issues which call for serious analysis, reflection and debate. Without being privy to the discussion which led to the decision, such debate will, to an extent, be speculative, unless it is backed by an informed analysis focusing on the objectives of the policy decision, its consistency with other existing policies, and its likely unintended effects (or collateral damage). This note seeks to stimulate debate by offering some thoughts on the required analysis.

As a preamble, however, it is useful to restate the critical functions of money in an economy and to understand why fiat money, the bulk of which is made up of currency notes of various denominations or face values, is susceptible to over-supply relative to the needs of the economy. While money has several other functions (such as means of exchange and unit of account), its most critical function is to serve as a store of value. In this capacity, money is the primary yardstick for measuring value. Hence, money serves as the record-keeping device which not only permits an efficient summary of past transactions in the economy but is also relied upon to do the same in the future.

Whatever instrument is used as money, therefore, must be as free as possible from distortions. When this is achieved, price stability can be relied upon to ensure an efficient allocation of scarce resources in a market-based economy.

It requires deliberate and committed policy to ensure the establishment and maintenance of price stability in an economy which uses fiat money. The government which issues fiat money has rather strong incentives to violate the requirements of price stability. In particular, the government derives revenue from issuing fiat money and, in addition, can finance its fiscal deficits by simply creating more money. Most governments try to protect themselves from this temptation by giving their central banks a degree of autonomy over the money creation function.

2. Objectives of the New Currency Note
The new currency note will have, at five thousand naira, the highest face value among the notes currently in circulation as legal tender in Nigeria. One can identify at least two plausible reasons for introducing this new currency note. One of these could be simply to raise government revenue, and the other could be to reduce the cost of transactions.

It is easy to show that currency issue yields revenue to government, through its agent, the central bank. Households and businesses which need cash normally access such cash at their banks. The banks, in turn, source their cash from the Central Bank. Paper currency forms the bulk of this cash in Nigeria and it is printed under the authority of the Central Bank. The printing cost is minimal and the same for all currency notes, regardless of denomination. When banks require cash for their customers, they buy it from the Central Bank at face value. In the process, the Central Bank (and hence the government) profits by the difference between the printing and distribution cost and the face value of the currency. Thus, the higher the denomination or face value of a currency note, the higher is the profit which accrues to the currency issuer. In effect, the profit derivable from a unit of the new five thousand naira note will be several multiples of that from a unit of five naira note, given that the cost of printing is the same.

It is also obvious that making large transactions with five naira notes can be more costly than doing the same with five thousand naira notes. The higher the face value of a currency note, the easier and cheaper it is to transport large amounts of money. The problem of transporting currency derives from its size and weight. Both of these tend to diminish as the face value increases. Hence, high value currency notes tend to be cheaper to transport for use in large transactions. Thus, the introduction of a currency note with a high face value could have the objective of reducing transactions cost.

3. Unintended Effects
Even when a policy action has particular desirable objectives at which they are targeted, they may also be associated with unintended effects and, thus, have “collateral damage”. The introduction of the new five thousand naira currency note is likely to generate a number of unintended effects.

First, there is strong historical evidence that the introduction of higher and higher face value currency notes in an economy often signifies a regime of increased and sustained fiscal deficit financing. This is, unfortunately, a failure-prone strategy because the inflation which it inevitably generates tends to erode the real value of the seigniorage revenue derived. Second, the issuance of high face value currency notes is likely to be perceived as an indication of government’s failure to effectively control inflation. Once this perception takes hold, increased inflation expectations can be built up quite rapidly. These have pushed many countries into a situation of hyper-inflation in the past, which has typically culminated in the redenomination or even complete abandonment of the entire currency system.

Third, the issuance of the five thousand naira currency note runs counter to the recent policy of the Central Bank of Nigeria to promote a “cash-less” economy by encouraging the increased use of non-cash transaction instruments. This policy which is aimed at reducing the use of cash has been justified by the need to reduce the burden of the cost of printing and distributing currency notes. The introduction of a high face value currency note actually does the opposite. By reducing the unit cost of printing and transportation, it actually should promote the use of cash.

Fourth, the issuance of the five thousand naira currency note also runs counter to the government’s often repeated commitment to fight corruption. It is widely recognized that large scale corruption tends to be facilitated by the ease with which unrecorded and large cash transactions can be made in any country. Similarly, increased illegal/criminal, drug-related and terrorist activities, as well as money laundering are known to be facilitated by such unrecorded and large-scale cash transactions. The ease with which currency notes with high face values can be transported renders them as ideal facilitating instruments for these kinds of undesirable activities. In the Nigerian context, the five thousand naira currency note is likely to be such an ideal facilitator.

4. Inflation and High-Value Notes
The close relationship between inflation and the issuance of high-value currency notes is, perhaps, best illustrated with the real life experiences of a number of countries.

During 1975 - 1991, Argentina experienced a period of inflation during which increasingly higher face value notes were issued. At the beginning of 1975, the highest denomination was 1,000 pesos. This rose to 5,000 pesos in late 1976, then to 10,000 pesos in 1979, and was 1,000,000 pesos in 1981. As this trend became clearly unsustainable, a series of currency reforms followed. In 1983, the currency was re-named peso argentino, one unit of which was exchanged for 10,000 pesos. In 1985, another name change occurred, and a unit of the new currency (austral) was exchanged for 1,000 pesos argentinos. Finally, in 1992, one new peso was exchanged for 10,000 australes.

Bolivia had a similar experience during 1984 - 1987. Before 1984, this country’s highest currency denomination was 1,000 Bolivian pesos; which rose to 10 million Bolivian pesos by 1985. In the 1987 currency reform, the currency was renamed Boliviano, a unit of which was exchanged for one million Bolivian pesos.

Two further examples from Latin America include Nicaragua and Peru. Nicaragua’s inflation episode was from 1987 to 1990. In early 1986, the highest denomination was 10,000 cordoba and, by 1987 it was 1,000,000 Cordoba. In the 1988 currency reform, one new cordoba’s was exchanged for 10,000 old cordoba. By 1990, the highest denomination was 100 million new cordoba.

Finally, in the 1991 currency reform, one new cordoba was exchanged for five million old cordoba. Peru experienced its worst inflation experience during 1988 - 1990. In 1986, the highest denomination was 1,000 units, which increased to 5 million intis by 1991. The currency reform of 1991 created the nuero sol, one unit of which was exchange for one million intis.

Two examples from Europe include Poland and the Russian Federation. In Poland, the highest denomination in 1989 was 200,000 zlotych, which rose to 1,000,000 zlotych, in 1991 and 2,000,000 zlotych in 1992. In the 1994 currency reform, one new zlotych was exchanged for 10,000 old zlotych. In the Russian Federation, the inflation experience over the 1992 - 1998 period led to the creation of new ruble in 1998, a unit of which was exchanged for 1,000 old rubles.

Back home, examples from Africa include Angola, Zaire/DRC and Zimbabwe. Angola experienced hyper-inflation from 1991 - 1995. Its original currency, the kwanza was replaced in 1990 by the novo kwanza. Early in 1991, the highest denomination was 50,000 novo kwanza. By 1994, this became 500,000 new kwanzas. In the 1995 currency reform, one unit of the re-adjusted kwanza was exchanged for 1,000 new kwanzas. By 1997, the highest denomination was 5,000,000 readjusted kwanza. In the 1999 currency reform, the original kwanza was re-introduced, with its one unit being exchanged for one million re-adjusted kwanzas. The highest denomination currency note now has a face value of 2,000 kwanza.

Zaire experienced an inflationary period between 1986 and 1996. In 1988, the highest currency note denomination was 5,000 zaires, which rose to 5,000,000 zaires by 1992. The 1993 currency reform created the nouveau zaire, a unit of which was exchanged for 3,000,000 zaires. In 1996, the highest denomination was 1,000,000 new zaires. In 1997, the country was re-named the Democratic Republic of Congo (DRC) and the currency was changed to francs, one unit of which was exchanged for 100,000 new zaires.

The case of Zimbabwe shows how rapidly things can get out of control. On 5 May, 2007, Zimbabwe issued currency notes with face values of Z$100 million and Z$250 million. On 15 May, 2007, a new bank note of Z$500 million was issued, followed by the issue on 20 May, 2007 of currency notes in denominations of Z$5 billion, Z$25 billion and Z$50 billion. Finally, on 21 July 2007, bank notes with a face value of Z$100 billion were issued. Eventually, Zimbabwe abandoned its own currency and legalized the use of only foreign currencies.

5. Conclusion
Nigeria has been experiencing bouts of inflation for a long time. Efforts to extinguish this dangerous trend have not been successful. The granting of “paper” autonomy to the Central Bank of Nigeria which is rendered ineffective in a regime of strong and growing fiscal dominance does not offer a realistic and feasible solution. The introduction of the five thousand naira currency note may be a step in the wrong direction, and down a slippery slope towards hyper-inflation. It is clearly time to abandon failed inflation-control policies and inadequately thought- through experiments. Effective price stability can only be restored and preserved by removing the mandatory obligation of the Central Bank and the rest of the financial system to finance government’s fiscal deficits.

taharqa: Plz it is presumtious and rude to use words like 'we all know dat...' when making yr points in public. When did 'we all' tell u 'our' minds on d issue....it wud be gr8t though if you intimate 'us' wit details on why YOU know dat d intro of #5000 'wud lead to disaster in d country'(i presume in terms of inflation). It wud be some gr8t to hv smone wit yr knowledge explain how d mere introductn of a higher denominatn wud lead to inflation.thnx

N5000 Note: ‘Wrong Step Down Slippery Slope’
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Saturday, 15 September 2012

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Sanusi Lamido Sanusi, CBN governor
Being the outcome of a research by eminent scholars led by Prof. Ademola Oyejide, a University of Ibadan Professor of Economics and an expert in Monetary Economics and International Trade. The research was commissioned by Obafemi Awolowo Institute of Government and Public Policy, Lagos.

1. Introduction
It has been announced that a new currency note with a face value of five thousand naira (N5,000) will soon be introduced into Nigeria’s currency system. This raises several important policy issues which call for serious analysis, reflection and debate. Without being privy to the discussion which led to the decision, such debate will, to an extent, be speculative, unless it is backed by an informed analysis focusing on the objectives of the policy decision, its consistency with other existing policies, and its likely unintended effects (or collateral damage). This note seeks to stimulate debate by offering some thoughts on the required analysis.

As a preamble, however, it is useful to restate the critical functions of money in an economy and to understand why fiat money, the bulk of which is made up of currency notes of various denominations or face values, is susceptible to over-supply relative to the needs of the economy. While money has several other functions (such as means of exchange and unit of account), its most critical function is to serve as a store of value. In this capacity, money is the primary yardstick for measuring value. Hence, money serves as the record-keeping device which not only permits an efficient summary of past transactions in the economy but is also relied upon to do the same in the future.

Whatever instrument is used as money, therefore, must be as free as possible from distortions. When this is achieved, price stability can be relied upon to ensure an efficient allocation of scarce resources in a market-based economy.

It requires deliberate and committed policy to ensure the establishment and maintenance of price stability in an economy which uses fiat money. The government which issues fiat money has rather strong incentives to violate the requirements of price stability. In particular, the government derives revenue from issuing fiat money and, in addition, can finance its fiscal deficits by simply creating more money. Most governments try to protect themselves from this temptation by giving their central banks a degree of autonomy over the money creation function.

2. Objectives of the New Currency Note
The new currency note will have, at five thousand naira, the highest face value among the notes currently in circulation as legal tender in Nigeria. One can identify at least two plausible reasons for introducing this new currency note. One of these could be simply to raise government revenue, and the other could be to reduce the cost of transactions.

It is easy to show that currency issue yields revenue to government, through its agent, the central bank. Households and businesses which need cash normally access such cash at their banks. The banks, in turn, source their cash from the Central Bank. Paper currency forms the bulk of this cash in Nigeria and it is printed under the authority of the Central Bank. The printing cost is minimal and the same for all currency notes, regardless of denomination. When banks require cash for their customers, they buy it from the Central Bank at face value. In the process, the Central Bank (and hence the government) profits by the difference between the printing and distribution cost and the face value of the currency. Thus, the higher the denomination or face value of a currency note, the higher is the profit which accrues to the currency issuer. In effect, the profit derivable from a unit of the new five thousand naira note will be several multiples of that from a unit of five naira note, given that the cost of printing is the same.

It is also obvious that making large transactions with five naira notes can be more costly than doing the same with five thousand naira notes. The higher the face value of a currency note, the easier and cheaper it is to transport large amounts of money. The problem of transporting currency derives from its size and weight. Both of these tend to diminish as the face value increases. Hence, high value currency notes tend to be cheaper to transport for use in large transactions. Thus, the introduction of a currency note with a high face value could have the objective of reducing transactions cost.

3. Unintended Effects
Even when a policy action has particular desirable objectives at which they are targeted, they may also be associated with unintended effects and, thus, have “collateral damage”. The introduction of the new five thousand naira currency note is likely to generate a number of unintended effects.

First, there is strong historical evidence that the introduction of higher and higher face value currency notes in an economy often signifies a regime of increased and sustained fiscal deficit financing. This is, unfortunately, a failure-prone strategy because the inflation which it inevitably generates tends to erode the real value of the seigniorage revenue derived. Second, the issuance of high face value currency notes is likely to be perceived as an indication of government’s failure to effectively control inflation. Once this perception takes hold, increased inflation expectations can be built up quite rapidly. These have pushed many countries into a situation of hyper-inflation in the past, which has typically culminated in the redenomination or even complete abandonment of the entire currency system.

Third, the issuance of the five thousand naira currency note runs counter to the recent policy of the Central Bank of Nigeria to promote a “cash-less” economy by encouraging the increased use of non-cash transaction instruments. This policy which is aimed at reducing the use of cash has been justified by the need to reduce the burden of the cost of printing and distributing currency notes. The introduction of a high face value currency note actually does the opposite. By reducing the unit cost of printing and transportation, it actually should promote the use of cash.

Fourth, the issuance of the five thousand naira currency note also runs counter to the government’s often repeated commitment to fight corruption. It is widely recognized that large scale corruption tends to be facilitated by the ease with which unrecorded and large cash transactions can be made in any country. Similarly, increased illegal/criminal, drug-related and terrorist activities, as well as money laundering are known to be facilitated by such unrecorded and large-scale cash transactions. The ease with which currency notes with high face values can be transported renders them as ideal facilitating instruments for these kinds of undesirable activities. In the Nigerian context, the five thousand naira currency note is likely to be such an ideal facilitator.

4. Inflation and High-Value Notes
The close relationship between inflation and the issuance of high-value currency notes is, perhaps, best illustrated with the real life experiences of a number of countries.

During 1975 - 1991, Argentina experienced a period of inflation during which increasingly higher face value notes were issued. At the beginning of 1975, the highest denomination was 1,000 pesos. This rose to 5,000 pesos in late 1976, then to 10,000 pesos in 1979, and was 1,000,000 pesos in 1981. As this trend became clearly unsustainable, a series of currency reforms followed. In 1983, the currency was re-named peso argentino, one unit of which was exchanged for 10,000 pesos. In 1985, another name change occurred, and a unit of the new currency (austral) was exchanged for 1,000 pesos argentinos. Finally, in 1992, one new peso was exchanged for 10,000 australes.

Bolivia had a similar experience during 1984 - 1987. Before 1984, this country’s highest currency denomination was 1,000 Bolivian pesos; which rose to 10 million Bolivian pesos by 1985. In the 1987 currency reform, the currency was renamed Boliviano, a unit of which was exchanged for one million Bolivian pesos.

Two further examples from Latin America include Nicaragua and Peru. Nicaragua’s inflation episode was from 1987 to 1990. In early 1986, the highest denomination was 10,000 cordoba and, by 1987 it was 1,000,000 Cordoba. In the 1988 currency reform, one new cordoba’s was exchanged for 10,000 old cordoba. By 1990, the highest denomination was 100 million new cordoba.

Finally, in the 1991 currency reform, one new cordoba was exchanged for five million old cordoba. Peru experienced its worst inflation experience during 1988 - 1990. In 1986, the highest denomination was 1,000 units, which increased to 5 million intis by 1991. The currency reform of 1991 created the nuero sol, one unit of which was exchange for one million intis.

Two examples from Europe include Poland and the Russian Federation. In Poland, the highest denomination in 1989 was 200,000 zlotych, which rose to 1,000,000 zlotych, in 1991 and 2,000,000 zlotych in 1992. In the 1994 currency reform, one new zlotych was exchanged for 10,000 old zlotych. In the Russian Federation, the inflation experience over the 1992 - 1998 period led to the creation of new ruble in 1998, a unit of which was exchanged for 1,000 old rubles.

Back home, examples from Africa include Angola, Zaire/DRC and Zimbabwe. Angola experienced hyper-inflation from 1991 - 1995. Its original currency, the kwanza was replaced in 1990 by the novo kwanza. Early in 1991, the highest denomination was 50,000 novo kwanza. By 1994, this became 500,000 new kwanzas. In the 1995 currency reform, one unit of the re-adjusted kwanza was exchanged for 1,000 new kwanzas. By 1997, the highest denomination was 5,000,000 readjusted kwanza. In the 1999 currency reform, the original kwanza was re-introduced, with its one unit being exchanged for one million re-adjusted kwanzas. The highest denomination currency note now has a face value of 2,000 kwanza.

Zaire experienced an inflationary period between 1986 and 1996. In 1988, the highest currency note denomination was 5,000 zaires, which rose to 5,000,000 zaires by 1992. The 1993 currency reform created the nouveau zaire, a unit of which was exchanged for 3,000,000 zaires. In 1996, the highest denomination was 1,000,000 new zaires. In 1997, the country was re-named the Democratic Republic of Congo (DRC) and the currency was changed to francs, one unit of which was exchanged for 100,000 new zaires.

The case of Zimbabwe shows how rapidly things can get out of control. On 5 May, 2007, Zimbabwe issued currency notes with face values of Z$100 million and Z$250 million. On 15 May, 2007, a new bank note of Z$500 million was issued, followed by the issue on 20 May, 2007 of currency notes in denominations of Z$5 billion, Z$25 billion and Z$50 billion. Finally, on 21 July 2007, bank notes with a face value of Z$100 billion were issued. Eventually, Zimbabwe abandoned its own currency and legalized the use of only foreign currencies.

5. Conclusion
Nigeria has been experiencing bouts of inflation for a long time. Efforts to extinguish this dangerous trend have not been successful. The granting of “paper” autonomy to the Central Bank of Nigeria which is rendered ineffective in a regime of strong and growing fiscal dominance does not offer a realistic and feasible solution. The introduction of the five thousand naira currency note may be a step in the wrong direction, and down a slippery slope towards hyper-inflation. It is clearly time to abandon failed inflation-control policies and inadequately thought- through experiments. Effective price stability can only be restored and preserved by removing the mandatory obligation of the Central Bank and the rest of the financial system to finance government’s fiscal deficits.

bancan: thank you so much,won't forget d fire extinguisher o.

how many years were you and your kid given?

bancan: my baby is just 1. Yes only physical screening was done on him(height,weight) but I paid the same amount but I did xtray , my blood sample and urine was taken in short the test was a comprehensive one. My toddler is normal and isn't anaemic.its exactly a week now after my medical test.

Why did you ask about anaemia then? anyway, in average of four weeks, ur trv should be ready. The SC disease should not be a barrier to your trv anyway since it does not constitute a threat to canadian public health. So you should be fine by Gods grace. Let us know as soon as you receive your trv. All the best madam.

bancan: I went for medicals with my baby last week monday. Pls how long do we have to wait for the visa after medicals.after medicals how sure is the visa if there is no medical problem? Can sickle cell anaemia be a problem? Need answers pls. Thank you

How old is your toddler? how was the medical screening done? i guess ur toddler is less than 5. If your toddler is less than five, its only physical screning that ll be conducted on him, hence no blood test or screening should be done. Can you tell us how was the test conducted on your toddler was carried out? i dont think SC anaemia will be a reason for denial, since its manageable and ur toddler will not need any special medical help and or special training. Also the disease does not constitute a threat to the public ie is not a communicable disease. I can drop my PIN or yahoo ID for more and detailed information.

Mekusnwa: The way you guys talk as if Gej's govt has not done anything on roads baffles me. Systematically, some people in Nairaland keep hiding the truth from the public. But I will make bold to list GEJ's achievement on roads so that genuine minded people will know and take steps to verify while the haters and BH Nairalanders,will find another opportunity to reign in their insults and abuses. In just one year, precisely 2011 budget, Gej was able to award and also complete some of the road projects across the country viz; Owerri-Onitsha, Afikpo-Okigwe, 9th mile, Auchi-Okene, Benin-Ore-Lagos(80%), Apapa-Oshodi expressway awarded to Julius Berger, Kaduna eastern Byepass, Kano Byepass, Keffi-Akwanga-Lafia, Obi-Awe-Lafia, Kano - Maidugri, Kolo- Nembe-brass, Zaria-Funtua-Gusau which is above 101 km. let's be factual please

why did you refuse or fail to say AMEN to the prayer that YOUR LIFE WILL BE RUN IN A MANNER GOODLUCK IS RUNNING THIS COUNTRY. You are all over the space singing President's praise. Even if you are his relative or you are being the number of response you post per day, you need to be diplomatic with your response. Let me ask you; Do you know the number of people being murdered and maimed on a weekly basis and my president could not curb it? Do you know the number of citizens- graduates wallowing in a abject poverty? Do you that more than 2 trillion naira subsidy fraud is more than Nigeria annual budget and my president is still dining and wining with the suspects ( Anyway, they financed his campaign)? Do you know the cost of travelling for international meeting with more than 100 delegates and the cost to you and i? Nobody is asking for perfection from GEJ but just to solve our basic problems.

Please, MR Melakwu or what, even if you have been paid, have mercy on 150 million nigerians, the youngs and olds. Do you know, I have a friend in Dana Air crash and our president did not sack the aviation minister who failed to monitor airline for safety. This guy had less than a year old kid, what do you think will become this little angel fate, when his dad was killed by ineptitude and corruption of our leaders. You know the crash was avoidable but alas it was not averted. You may ask me if i expect GEJ to stay at the airport and check the aircraft? Obviously NO! Thats why he has a minister responsible for that role and when she failed to perform, she should be sacked with immediate alactrity. But can your president sack her? Of course no. Do you know why? she financed GEJ campaign and she sponsors door to door campaign and thats the reason live of hundreds is sacrificed. God will pay you back in your own coin.

Mandelaguy: I have relatives in Ghana,all of you defending Ghana are jokers. Anyway, we should learn the issues to talk about on this forum and the ones to ignore. The so called professor should have addressed his country's issues before looking our way(I know they are not better)but we can see the reason why he did not on this forum. Most of us have made it our profession to castigate everything in this country and when some sane people try to restore sanity,they are either labelled paid,or pro Jonathan. We are proudly Nigerian and will spill our last blood to protect the integrity of this nation and can only achieve that by being constructive in our criticisms,proffering solutions to our problems,economically,socially,security wise,e..t.c building a nation is a collective responsibility and our children will hold us accountable if we fail. What am saying is(in simple terms for those slowpokes and jokers here) stop hurling insults here and there,shares deals,trade views and all. I will not join issues with an American based professor who knows nothing about the internal workings of this country. We who hlive here, having spen little years outside the shores of this great naion will authoritatively tell you that the greatest forces that pull down the building of any country or economy is sabotage. Sabotage come in different forms because of the varying self interests at the minds of the perpetrators. Some people like kobojunkie and co are here making claims about this and that,labelling and inciting people without having afore knowledge of what they are talking about,inasmuch as they claim otherwise. It will interest you to note that they use verbal abuse and their mindset is that everyone on this forum who is on the other side or with a conflicting opinion is venal. My position remains,build,don't pull down. The country has been passing thro a difficult phase,and like some sensible people have een saying,let us stop insults and criticise objectively. If after all said and done GEJ fails, we will all say it,but for now,we should commend him on he areas he is succeedng and encourage him on the areas he is trying to and caution him on the areas he is failing to address. This is what democracy is all about and this is our own responsibility and contribution and not to use his forum for name calling,mudslinging, insults and arguing over which idiot said this or that.

why did you refuse or fail to say AMEN to the prayer that YOUR LIFE WILL BE RUN IN A MANNER GOODLUCK IS RUNNING THIS COUNTRY. You are all over the space singing President's praise. Even if you are his relative or you are being the number of response you post per day, you need to be diplomatic with your response. Let me ask you; Do you know the number of people being murdered and maimed on a weekly basis and my president could not curb it? Do you know the number of citizens- graduates wallowing in a abject poverty? Do you that more than 2 trillion naira subsidy fraud is more than Nigeria annual budget and my president is still dining and wining with the suspects ( Anyway, they financed his campaign)? Do you know the cost of travelling for international meeting with more than 100 delegates and the cost to you and i? Nobody is asking for perfection from GEJ but just to solve our basic problems.

Please, MR Melakwu or what, even if you have been paid, have mercy on 150 million nigerians, the youngs and olds. Do you know, I have a friend in Dana Air crash and our president did not sack the aviation minister who failed to monitor airline for safety. This guy had less than a year old kid, what do you think will become this little angel fate, when his dad was killed by ineptitude and corruption of our leaders. You know the crash was avoidable but alas it was not averted. You may ask me if i expect GEJ to stay at the airport and check the aircraft? Obviously NO! Thats why he has a minister responsible for that role and when she failed to perform, she should be sacked with immediate alactrity. But can your president sack her? Of course no. Do you know why? she financed GEJ campaign and she sponsors door to door campaign and thats the reason live of hundreds is sacrificed. God will pay you back in your own coin.

Mandelaguy: if I commend you now, the will start their conspiracy theory,but the truth is tha I have come into this form to air my views and will not be intimidated or shut up and no amount of mudslinging can make me back down from any position I take n national issues. Well done!

why did you refuse or fail to say AMEN to the prayer that YOUR LIFE WILL BE RUN IN A MANNER GOODLUCK IS RUNNING THIS COUNTRY. You are all over the space singing President's praise. Even if you are his relative or you are being the number of response you post per day, you need to be diplomatic with your response. Let me ask you; Do you know the number of people being murdered and maimed on a weekly basis and my president could not curb it? Do you know the number of citizens- graduates wallowing in a abject poverty? Do you that more than 2 trillion naira subsidy fraud is more than Nigeria annual budget and my president is still dining and wining with the suspects ( Anyway, they financed his campaign)? Do you know the cost of travelling for international meeting with more than 100 delegates and the cost to you and i? Nobody is asking for perfection from GEJ but just to solve our basic problems.

Please, MR Melakwu or what, even if you have been paid, have mercy on 150 million nigerians, the youngs and olds. Do you know, I have a friend in Dana Air crash and our president did not sack the aviation minister who failed to monitor airline for safety. This guy had less than a year old kid, what do you think will become this little angel fate, when his dad was killed by ineptitude and corruption of our leaders. You know the crash was avoidable but alas it was not averted. You may ask me if i expect GEJ to stay at the airport and check the aircraft? Obviously NO! Thats why he has a minister responsible for that role and when she failed to perform, she should be sacked with immediate alactrity. But can your president sack her? Of course no. Do you know why? she financed GEJ campaign and she sponsors door to door campaign and thats the reason live of hundreds is sacrificed. God will pay you back in your own coin.

Mekusnwa: Where did they go to pick this character from? There's no end to what theses Gej haters will not do to get at him. Suddenly, they hve gone to generate a Ghanian professor to come and give a disjointed analyses of that interesting Media chat. Who interviewed this professor? Who made him world's foremost economist? I will not be surprised if this man was cloned by SAHARAREPORTERS or Kobojunkie to lend credibility to their falsehood. Let me assume that the man exist and face the issues raised.
1. He acted in ignorance when he said the president didn't declare his assets. The president indeed declared his assets but it was not made public. Even if you doubt it, the assets declaration that he did as Vp under Yaradua still subsists as he has not left office since then. So why the noise over assets declaration?
2. It is an insult on the sensibilities of Nigerians for the so called Ayitteh to label our President as insane and with unsound mind. Who adjudged Jonathan as having unsound mind? Did Ayitteh evaluate a medical report to that effect? How did he arrive at this weighty derogatory statement against a PHD holder? Who is Ayitteh to tell us we voted an insane President? please there must be an end to useless propaganda.
3. The so called Ayitteh questioned why GEJ has not fixed Maidugri airport for his usage. I want to ask, has Ghana even fixed the airport at Accra talkless of the one in hinterland? Is it Not the airport where a cargo aircraft crashed due to water logged runway. Meanwhile, Gej is carrying out massive reconstruction of airports across the country. He is doing in less than one year what many of his predecessors could not do all thru their tenure. Go to Abuja airport, the domestic wing has been closed down for intensive renovation. New car parks are being built. At the international wing, the runways are being built and the entire airport infrastructure is being rebuilt. Similar projects are going on simultaneously in Enugu, Lagos, etc
4. He said GEJ's Agric revolution is only restricted to distribution of palm seedlings. What an affront on truth. Even a toddler in Nigeria has come to know about the cassava revolution and fertilizer distribution reforms scheme.
5. Thankfully, the fake prof accepted the massive construction of rail lines across the country but only faulted the projects on account of what he described as non inclusion of Nigerians in the contract. Who told him? And since when has a Ghanian assumed the role of our local content enforcement officer?
6. He ended up betraying his true identity as an interested party when he said the president needed to consult the university authority and students body before renaming Unilag. What a joke!

Mr Mekuswa or what do you call yourself. I can see that you a supporter of GEJ and you are happy with the way your president and his corrupt friends (otedollar and co) are sucking us dry. I will like you to say amen to this prayer if you are truly happy with GEJ docile style of government. MAY YOUR LIFE BE RUN THE WAY GEJ IS RUNNING THIS COUNTRY. If you can say Amen i will know you truly happy with GEJ and that means i will advise you to go for a medical check up at a closer psychiatric hospital.

@orisuniye

what did you mean by checked with vac, did you call them or u went to their office. assuming you re waiting for them to update the website, ur visa might expired without knowing. It means VAC are grossly ineffective.

@sucre cruz

when is your new resumption date since it was initially match 5 which has elapsed? did cdhc asked for new resumtion date from you? lastly hat course re u going for at stouville college?

thanks

after all the rumours and speculations, shell in their usual manner dissapoints nairalander once again! i ve said this in this forum that, shell seems not to be ready for any employment now!

All the best sha!

@impish

can u please furnish the house the source of your info like posting the link here or simply write it to ensure the veracity of ur claim.

it sounds appealing though. But shell is well known for dissapointment as no activities suggest that they may go ahead with recruitment. However, God is miraculous, hence anything can happen.

@kvonlander

the expected medical IVs is it for the engineers who are meant for sitp or hr/finance graduates are inclusive.

your response will appreciated.

a lot of pple including me have almost lost hope in shell job cos its taking longer time than necessary to round off the process. One year after we completed SRD they re still looking for suitable positions up till now. Their contemporaries such as chevron, mobil re still hiring. everything is heresay, thats why i was even tired to check the thread recently. Anyway, i wish everybody all the best!

@pepperboy

u re dawn right. i concur on the fact that this thread goes beyond job application. I guess shell is getting set for this year srd. my main concern is the feasibility of concluding the process by july. Knowing fully well that it takes shell avergae of 4 weeks to complete a step in the process. U have not not srd proper. lets wait and see then time will tell. Any body in the house that has info in respect of finance/hr. not new candidates those that have passed srd since last year. Going to like one year we finished our srd and still waiting to be called. See u guys on top

@porto

Since nobody is ready to buy your question, why dont you find somewhere to advertise?

This thread has become so dry and uninteresting, is it because of the test that makes everybody to stay incommunicado. Dont renege on ur promise to keep the flag flying. For those who have finished the test, tell the house ur experience and if there is any info, rumour, or grapevine dont hesitate to tell the house.

Thnx

@teejan,

g8, and thanks a bunch. We ll hope for good as we continue to hold on for our time to come.

@teejan,

Can you please help us ask your source; whats the shell's plan for the fiannce and hr graduates who have passed SRD since last year. Kindly help us to ask. Obviously there is nothing we can do. But sincerely speaking, negative answer from a reliable source like yours is better than positive answer from unreliable source-it will only create a false hope.

Thanks as we await favourable response and reaction from you- otimpku apolopolo 1

[b]Four firms get FG’s license to drill for gas [color=#990000][/color]

For the first time since Nigeria struck crude oil at Oloibiri in 1956, the Federal Government has awarded licenses for exclusive drilling for gas. This is a departure from what previously obtained when most of the gas utilised is extraction from crude oil.

The beneficiaries of the license are Shell Petroleum Development Company (SPDC), Total Fina Elf, Niger Delta Resources and Nigeria Agip Oil Company (NAOC). Long classified as a country sitting on huge gas reserves with sprinkling of oil, the gas master plan is expected to open up the gas sector so that more companies can directly engage in gas exploration and processing. Confirming this to BusinessDay the director of Department of Petroleum Resources, Bill Agha, said the need to start harnessing the gas resources of the country has become expedient in order to realize the full potentials of the country’s gas resources.

The implication of this is that gas exploration in the country will seriously address the issue of domestic gas supply which has led to serious hiccups in the power sector. Gas reserves at January this year stood at 185.3 trillion standard cubic feet (tscf). That of associated gas (AG) stood at 97.4 tscf while non-associated gas (NAG) stood at 88.0 tscf.

Shell was granted approval to drill appraisal/development for Afam –Umuosi -2 and Kolo Creek -2 wells and to initially complete Gbaran-15 and Zarama-11 wells. The company was also asked to drill Agbada-NHSV-3 wells and process Kolo Creek Deep.

Agip was granted approval to drill appraisal/development for Irri-E well, Niger Delta Resources granted approval to work over Ogbele-1 well as a gas producer while Total Elf Fina was granted approval drill IBewa-T2 well as a gas development well.

Meanwhile, the country’s production level average 2.0 million barrels of oil per day (bpd) for the first quarter of the year. The production data shows that it was made of 1.6 million barrels per day allowed by the quota restriction placed on the country by the Organisation of Petroleum Exporting Countries while the remaining over 700,000 barrels were made of condensate.

According to Agha who gave the monthly average production from January to March 2010, January’s average daily production rate was 2,280,859 bpd; February 2,345,897 bpd and in March average daily Production rate was 2,412,911 bpd

“Average for the first quarter 2010 was 2,346,556 bpd. The current OPEC quota is 1,673,000 barrels. Technical production allowable for the first half of 2010 was 2,501,682 bpd compared to 2,605,618 Barrels per day for the same period in 2009.

Production deferment for the first quarter of 2010 was as follows: January 2010, 522,869 Barrels per day February 2010,507,199 Barrels per day, and in March 2010, 311,337 barrels per day was deferred Average Deferment for the first quarter of 2010 was 447,135 bpd

Chevron wells that were hitherto shut-in came on stream in March, 2010, thus bringing down the deferment in March. The deferment was as a result of Niger Delta crisis and operational problems.


i thought this a good news as this signal positive development in shell which may call for need to recruit more pple or what do u guys think about this development?

@kvolander

which website is that?

@teejan

Let me give you the benefit of doubt once again and rescind my decision due to respect given to me to by the noble members of this noble thread on nairaland. Moreover, i did nt allege u for hoarding info, at least u shud tell us that for hr/finance hopefuls, no info yet, at least that will make us happy that u have our interest at heart.
@cheksa I m not waiting to be called for interview, am waiting for medicals, i m tru with srd since august last year. Lets keep praying!

i once challenged our new chief of being biased towards SITP alone and he denied the allegations. Ur post just confirmed ur apathy and inertia in HR/Finance graduates. If not, u need to to just mention that no info for u guys o! I m signing off on this thread cos i guess its meant for SITP guys. However, i wish everybody all the best. Bye for now,

apolopolo otimpku 1, the medical invitations for those on the waiting list, does it affect hr/finance graduate too or is just for SITP? u re responsible to everybody now, being a high chief of this forum.

AAAAAAAAAAAAAAAAA teejan address us!

ok then, let harmonise the titles to - apolopolo otimpku 1- i hope u all concur to the harmonised title now?

@teejan

i guess that title might be too small for someone who goes all out to hoelp others. As for me i will confirm him with a title - apolopolo ezembiago oparogo 1 of shell hopefuls. Oye a mori o. Kwe nu!

@teejan

because u re for SITP, it seems u re less concerned about HR/finance pple. This is not fair, we need info like u guys too and we too are hopefuls. Pls get info for us too. Thanks

@teejan

well done. I have to commend u for going extra mile to get info for the nairalander without minding the resistance from your source. It is a good camaraderie and I pray that you shall reap ur reward for being helpful to others. I m for Finance who passed SRD since august last year and now on the waiting list. if you any info for us too, please do not mind to share it with us, but dont let it strain ur relationship with ur source. There is always eagerness and curiousity to know what shell has in stock for pple like me cos its really hampering my long term plan. However, I m always very happy for being part of this thread, sharing opinion and idea on our aspiration. More post ll be appreciated guys!

it might be true , u know shell is well organised, the interview might be in baches. I wish all the interviewee all the best. Lets all the hopeful be patient, i hope btw now and next ymonth, more info ll surely be available.