“5000 naira note?!”

“God forbid!”  

“Over my dead body”

“Those thieves would now be able to put their stolen millions in their pocket and walk our streets.”

“Now the limit of Who Wants To Be A Millionaire would be one hundred million naira.”

These are some of the responses of Nigerians ranging from being unreal to absolutely hilarious. A consolation to this armageddon of sorts to Nigerians is for them to SHUT UP. That was meant in the nicest possible way.

Yes, shut up and sit down, Nigerians. For once, close your mouth and open your eyes and ears, it is said that when ignorant people speak, they either show how much of the subject matter they don’t know or they show just how little they know. Ignorance was responsible when the eaglet hatched with chicks thought it could not fly up to 5 feet. Because your senators are against it, doesn’t mean they know what they are doing. You are the same people always condemning the lawmakers and you back them up for this. Hypocrites, I hail thee.

I find this difficult to comprehend but some think the CBN is already being run by an antichrist ready to conquer the unsuspecting world. Sit down and listen and I would explain some things to you.

In economics, there is something called the Phillip’s curve. It is simply a graph showing the alternative between inflation and unemployment - the higher the inflation, the less the unemployment and, vise-versa. And what are the most pressing needs of the Nigerians? Security, poverty and unemployment you say. Security aside (because it is the fault of the self-acclaimed most criticized president in the world it has gotten this bad), poverty can’t be erased without having cash at hand. And the last time I checked the amount you have in your pocket is as a result of you earning it or you stealing it, your choice. You can’t earn money unless you are employed.

The current unemployment rate in Nigeria is 70%, which means 7 out of 10 graduates this year would be unemployed next year, after NYSC (which in all honesty should be scrapped because it had achieved its aim of integrating Nigerians & Nigeria).

So, if you are planning to have five kids now, it means - if this trend continues – at least three of them would be jobless. This is normally the case unless you are an empire mogul or a law maker.

    Back to Phillips curve, the 5000 naira note will cause inflation, no doubt.(inflation simply means increase in general price level for example sachet water or pure water would be 200 naira and women would make their hair for 100,000 naira. Pens would be a little cheaper at 500naira.You get the point). But the other side of the coin would be reduced unemployment or increased employment or more people would have jobs. You get the point.

For the record, empathy is on the side of those who don’t support this 5000 naira note move. First, apart from turning our economy into a replica of the hyper inflated Zimbabwean economy, it makes the value of naira to drop. Everybody wants to sell to a cheap currency but not buy from it. The 5000 naira note would certainly turn Nigeria to an import-dependent country (as if she is not already) unless we adopt china’s currency manipulation scheme. And we certainly don’t have the guts to do it. There might also be concerns about the long term implications.

While it is bad for us externally, the 5000 naira note is acceptable domestically. Besides, who wants to paint the outside of his house when the inside is still a mess? The 5000 naira note increases the price level of everything (inflation).The firms or companies or industries have the chance to recoup their losses and charge exorbitant prices giving them the profit they want. Profits are used to expand operations and human capital (people) are needed to run the operations. Thus, you and your children are employed back. The employment provides you the chance to save and spend, increasing your demand. And an increase in demand of citizens is what will keep the economy from crashing, not negotiating with Boko Haram.

The 5000 naira note is the policy to help Nigeria in the short- run, theoretically. But then again, Nigeria is a place where the best theory can make the worst practice.