Godwin Emefiele, Governor of Central Bank of Nigeria has revealed that the apex bank is planning to reduce the volume of higher denominations, N500 and N1000 in circulation to tame inflation.
According to Emefiele, the high volume of higher denominations could be part of the factors fuelling inflation in the country.
He backed his claim up by pointing out that the highest denomination in the UK is £50 and the most spent currency in the country is £10.
“Rarely you find some people spend £20. Nobody sees £50. If you go around carrying £50 in the UK, they will begin to suspect you. Whereas, the reverse is what is happening in Nigeria. Nigerians want to carry N1,000 or N500.
“In fact, we’re beginning to see or think that increasing the high denomination bills is also part of what may even be fuelling inflation.
“So, over time, we will reduce the volume of N500 and N1000 in circulation.
“Let people carry N50 around. If you want to do high-value transactions, embrace online, embrace our agency programme, embrace our mobile banking programme. That is what you need. You want to conduct legal banking or financial services transactions, you have no business carrying N1,000.”