NIGERIA REALLY NEEDS HER COINS.
Beyond the Mallam Sanusi Lamido Sanusi’s five thousand naira note saga and coining of N5, N10, N20 and N50 notes; the case for more coins in our economy is still a valid one. Though that idea has for now been jettisoned, thanks to Presidential wisdom.
I am not an economist or anything but I worry about the mindset or intentions of our financial regulators. NIGERIA’S ECONOMY DOES NEED COINS but shouldn’t a serious CBN governor be at the fore front of aggressively trying to make Nigerians see wisdom in using our existing but under-utilized lower denomination N1 and N2 coins?
Here’s a Nigeria where a product like pure water sachet goes for say N5, but due to inflation it increases over night to N10, that’s a one hundred percent increase. Whereas, if the N1 and N2 coins enjoyed good circulation, Pure water could at least be increased to N6, N7 or N8, and its pricing would then be very competitive. Same goes for all other consumer products in Nigeria because as it is now, every price increment starts from a minimum N5 to N10 margin.
Is there any economist reading this? Please help me point out where I’ve missed it in this brief write-up. I am a humble learner.