Mr. Olumide Adedoyin, the Registrar of the Chartered Institute of Treasury Management (CITM), has suggested to the Federal Government that it should gradually phase out higher denomination notes like the N1000 and N500 Naira bills.Â
He believes that these notes are more prone to counterfeiting and illicit financial activities, and removing them would contribute to strengthening the Naira.
In his view, implementing a currency reform, which could involve demonetization or a gradual elimination of the N1000 and N500 notes, is crucial for enhancing the nation’s currency.
Adedoyin also commended President Bola Tinubu for proactively addressing the misuse of the Nigerian currency and, by extension, the national economy.
This commendation was based on directives given to the Central Bank of Nigeria (CBN) to completely ban the use of the dollar in the country’s economic transactions, aiming to better appreciate the value of the Naira.
Adedoyin further urged the government to embrace cashless policies and encourage the use of electronic payment systems, such as mobile money, online banking, and electronic fund transfers.
These measures, he believes, would help decrease the reliance on physical cash and limit the circulation of higher denomination banknotes.
Highlighting the importance of financial inclusion, Adedoyin called on the government to promote initiatives that bring more people into the formal banking system, reducing dependence on physical cash. This, he argued, would facilitate easier management of currency supply.
To fortify the Naira, Adedoyin emphasized the necessity of implementing and enforcing robust anti-corruption measures to curb illicit financial flows, including money laundering and other illegal activities that contribute to the devaluation of the Naira.
Additionally, he stressed the need to promote economic diversification to reduce the country’s dependence on oil exports.
Encouraging earnings from other sectors such as agriculture, manufacturing, mining, and services would enhance foreign exchange reserves and contribute to the overall stability of the Naira.
