CBN Governor Lamido Sanusi replies Former President Olusegun Obasanjo’s Criticism of new N5000 notes – “You’re a Good Farmer but a Bad Economist”

The media sphere has been agog with news of the Central Bank Governor, Lamido Sanusi‘s reaction to former President Olusegun Obasanjo‘s recent statement against the introduction of the new N5000 notes and from it, I picked up something interesting I wanted to share.

In his reaction, the Central Bank Governor was quoted as calling the former President “a good farmer but a bad economist”.

Earlier on, Mr Obasanjo had criticised the introduction of new N5000 notes saying it would increase inflation. He also added that it would kill production and affect small businesses negatively.

However, Mr. Sanusi in his reaction said that he was surprised that the former President could oppose the proposed N5,000 note given that the high currency denominations in the country, including N1000 note, came into being during his (Obasanjo) regime.

“This is an interesting country because my uncle or my father, who is our former Head of State, Gen. Obasanjo, you know he is a very successful farmer, but he is a very bad economist. He stand up and says that this higher denomination  will cause inflation and improve hardship,” Punch quoted him as saying.

And he continued: “Gen. Obasanjo did N20, he did N100, N200, N500 and N1,000. He introduced higher denominations in Nigeria than any other head of state. He did a N100 note in 1999, he did N200 in 2000, he did N500 two years later and in that period inflation was coming down because it was accompanied by prudent fiscal and monetary policy.

“For somebody (Obasanjo) who had done this to stand up and say introducing a higher denomination will cause inflation must be an empirical, most important determinant of inflation in our country given the number of notes he had printed.”

His statement got me wondering if introducing new currencies and other such economic policies were the responsibility of the President rather than the Central Bank.

The planned introduction of the new N5000 notes has been greeted with wide spread resistance. This also gets me thinking; who are the opposers of the new notes supposed to direct their grievance to – the President or the CBN governor?

Also, what are your thoughts on the CBN Governor and the former President’s arguments for and against the new notes?

30 Comments on CBN Governor Lamido Sanusi replies Former President Olusegun Obasanjo’s Criticism of new N5000 notes – “You’re a Good Farmer but a Bad Economist”
  • onnari September 12, 2012 at 8:51 am

    Do our opinions matter ap this point? Our protests and dissagreements didn’t have much effect obviously as the NEW NOTES and COINS are still going to b issued.
    http://www.thatssewnaija.blogspot.com

    • Laila Ikeji September 12, 2012 at 9:33 am

      I so love ur answer! took the words ryt out of my mind. Tho Sanusi may have good intentions, all i can think of is imagine getting 2 pieces of counterfeit N5000 notes. As a normal, everyday guy, that’s a huge loss. A lot of things to imagine that will go wrong if this N5000 note is introduced. Na God hand we dey finally sha. btw, Sanusi calling Obj a good farmer, bad economist really got me laughing so hard. Waiting for Obj’s reply. And I kno he’s gonna hit hard on Sanusi. lol
      http://www.LailaIkeji.com

      • name September 12, 2012 at 11:21 am

        ooh he sure will lol

      • b September 12, 2012 at 6:27 pm

        they are always taking the words outta ur mouth . #mute tins# jus guessin

    • nickyminaj September 12, 2012 at 1:29 pm

      exactly. the government has made it clear that no matter wat we say they know what is best for us and will continue to do as they please

  • bimogz September 12, 2012 at 9:16 am

    Personally, I think there should be a gradual increase in denomination, a survey of the general public’s reaction and then make a decision as to the fate of the proposed #5000. They could have started with a #2000 (considering many small businesses still grumble when you produce a #1000 note and demand change). Its a natural reaction that the news is not welcomed with open arms.
    The bank of England once produced a £100 note which is not currently in circulation. Except you go to the bank to withdraw a somewhat large sum of money, the £50 bill is not an option. Obviously, knowledge is limited and I do not know how introducing larger currencies affect the “small people” of the society in other countries but considering we do have lots of “small people” (as is with other nations) I do not think this is the way forward for now.

  • Ceejay September 12, 2012 at 9:41 am

    This Lamido Sanusi man is just a JOKE. Obasanjo is so right. The naira is useless already and will be even more. This will increase inflation for sure and even crime rate. Nigeria.. when will we have sensible leaders?

  • my beat September 12, 2012 at 10:19 am

    I think the CBN governor’s response is quite defensive which I think reeks of ”I must have my way no matter what”.
    Agreed the governor is a good economist, but is he taking into consideration the vast number of people barely making a living in this country compared to the very rich who just want to have it all there own way?

    • X factor September 12, 2012 at 1:56 pm

      I disagree, the CBN Governor is a good islamist and Credir Risk Management Professional (proficient in the use of Basel II principles) However, he is a bad economist, a joker and the worst of the lot………

  • averagenaijababe September 12, 2012 at 10:21 am

    God will punish them accordingly as they introduce the 5000 naira note.its just a way of increasing inflation nd making their loots more valuable.just trying to make life unbearable for average Nigerians.I tot this Sanusi guy was wise buh I see now that he is just a wolf in sheep’s clothing.God ll punish your whole generation*angry*

  • onnari September 12, 2012 at 10:35 am

    Definitely not d way forward. Especially when we have more than a lot of ‘small people’ :-) besides, the cost (in billions when we already owing so much), of producing the new notes and coins isn’t what we need right now.

  • huh? September 12, 2012 at 10:41 am

    I luv OBJ,I’m just waiting for his next line of reply.havn’t gotten over him and IBB saga.can’t wait

  • Glossy September 12, 2012 at 10:57 am

    I agreet with the first speaker, whatever you and I say will not make any difference, especially when it comes to issues in Nigeria. We can only talk but they will always go ahead with their plans, that is if the notes are not already in print as we speak. infact they should print N10,000 note, we go survive that is why we are Nigerians.

  • ola September 12, 2012 at 11:23 am

    Baba my be wrong in the past,but in this kind of situation that our economic gdp is good,in the past country like Argentina,Zimbabwe,Peru,Russia have try this kind of situation but at the end,their economy did not boost up..

    http://www.gistyinka.com

  • negel September 12, 2012 at 11:33 am

    really bringing the new N5,000 note, to me is just the easiest way of Extorting money from the country’s purse.

  • praisy September 12, 2012 at 11:35 am

    It is just going to useless the value of Money whether he agrees to it or not. Afterall, he will not feel the pinch at all, it is only the already ‘poor people’ that will feel the impact of the inflation. God go judge them.

  • Boxicus September 12, 2012 at 12:48 pm

    Sanusi is missing the point..Even though Obj (or the central bank govenor during his tenure) was responsible for bringing such notes, dont higher notes still cause inflation? He should stop playing the blame game and answer what the benefits of introducing this N5,000.00 note to our economy will do.

    • jonz September 12, 2012 at 1:50 pm

      No they bloody don’t!
      I fear for our education system

  • Michael-Success September 12, 2012 at 12:53 pm

    Nigerian Govt. is not responsive to her citizenry, they careless, laws are enacted only when it suits the rich> how many laws have you seen made to really alleviate the pains & suffering masses. No doubt we are at their mercy, in for a big trouble — If oxygen can all be bottled Nigerian Govt. will sell it at high cost & unaffordable to her citizens, Only those who can afford it will live. If you wish to know more of what to expect, mail me @ cherithbrooks@yahoo.com (We are in a Military-Democratic Dispensation.)

  • faith September 12, 2012 at 1:04 pm

    waiting for obj’s response…lol…..hahahahaha…yeye leaders….

  • purplepearl September 12, 2012 at 1:33 pm

    Sanusi, am sure u dont want Obj to address you. cant wait to hear his next response. *evillaugh

  • jonz September 12, 2012 at 2:17 pm

    Economics should be made compulsory in schools for real

  • naijasportsgists September 12, 2012 at 4:04 pm

    I hope this does not get messier because I trust OBJ will reply.
    http://naijasportsgists.wordpress.com/

  • brandigest September 12, 2012 at 4:23 pm

    I even think the governor is even in paucity of the knowledge he claims to possess. Because most of his initiatives failed.
    http://www.brandigest.wordpress.com

  • Bianca September 12, 2012 at 7:29 pm

    It’s interesting how people bash OBJ all the time, but this man most of the times is speaking sense. Lamido Sanusi, you are the bad economist because if you are using your common sense properly, you will know that having a 5000 single note is not going to help the economy neither is it a pressing issue at hand. It just makes no sense. All lamido does is blow his slight british accent, and he thinks he’s making sense. I will rather listen to OBJ talk because he’s asking real questions.

  • Comrade Olatunji Fela September 13, 2012 at 1:38 am

    On N5000 Naira Note. You are very very stupid to have abuse our own former president over your rubbish N5000 notes on all Nigerian dailies. Former President Obasanjo have right to express his opinion as a citizen of Nigeria just like any other Nigerian. Bcos you are given the opportunity to be central bank governor does not means you are more intelligent than every intellectuals in this country. It is very disgusting what you said to an elder state man which shows you are very very rude, arrogant and have no respect for people’s opinion. If you are sure of what you are doing challenge the economists in to a debate on live show TV and let Nigerians listen to superior argument instead of abusing people. YOU CAN NEVER BE A GOOD LEADER

  • Comrade Olatunji Fela September 13, 2012 at 1:51 am

    It shows how unintelligent CBN Governor is. For a former president who ruled the country for eight years talking from his own past experience when he created N1000, N500, N100 naira notes, converting N1,N2 and 50k to coins and how those currency face out and the effect on the Nigeria economy. The Former president has better experience because he has done it before and he saw the effect on Nigeria Economy and I think he is in better position to advise so as not to further cripple our Currency and also create hyper inflation.

  • marvel September 13, 2012 at 8:32 am

    Sanusi strikes me as a bit of a dictator, actually. Somehow, I feel that his actions tend to defend his fellow aboki’s, who run money laundering/ exchange businesses. So much for cashless societies. I can have 1m Naira worth of crisp 5k notes in a tote which doesn’t quite make any sense to the ‘cashless’ banter he has been waffling on about. Sorry, one doesn’t have to be an economist to know when the public are about to be fobbed.

  • Ade September 13, 2012 at 6:00 pm

    Obasanjo is a president, and someone who has more experience than Sanusi. And, being an economist does not mean you have all the right answers to run the economy of a struggling developing country. Obasanjo is a farmer, but he obviously knows how to run a country than you do. I’m appalled at Sanusi defending a 5000 naira note, because it’s no brainer to understand that it will damage the economy than anything else. Sanusi needs to step down, if he cannot come up with reasonable, logical, effective ideas, he’s getting paid a lot of money for doing absolutely NOTHING.

  • promslik December 29, 2012 at 5:13 am

    I’m criously waiting for the president of Nigeria or governor of CBN that will trash out 1000, 500, and 200 notes. Instead of dez thieves to think of improving the value of the naira, dey are thinking of ways best to extort more money. God will punish all of u. DEVILS

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