Phase out N1000, N500 notes to strengthen naira, CITM tells FG

Olumide Adedoyin, registrar of the Chartered Institute of Treasury Management (CITM), has advised the federal government to phase out higher denomination notes to strengthen the naira.

Adedoyin, in a statement on Monday, said such a step was geared towards addressing the devaluation of the naira, and by extension, challenges facing the Nigerian economy.

According to him, the higher denomination notes, such as the N1000 and N500 notes, were liable to counterfeiting and illicit financial activities, hence, they should be phased out to reform the nation’s currency.

“To reform the nation’s currency, there is need for the federal government to implement a currency reform that involves demonetisation or gradually phasing out higher denomination notes, such as the N1000 and N500 notes,” he said.

“It is important to note that these measures should be implemented in a coordinated and holistic manner to address the underlying economic and structural challenges facing the Nigerian economy.”

Adedoyin urged the federal government to accept cashless policies and promote the use of electronic payment systems, such as mobile money, online banking and electronic fund transfers to reduce the reliance on physical cash.

Also, the registrar called on the government to further intensify financial inclusion initiatives that would bring more people into the banking system, adding that it would make it easier to manage currency supply.

“Careful consideration should be given to potential social and economic impacts on the population, to ensure a smooth transition and acceptance of the proposed reforms,” he said.

The registrar also emphasised the need to promote economic diversification to reduce the nation’s reliance on oil exports and increase foreign exchange earnings from other sectors such as agriculture, manufacturing, mining, and services.