Lagos - The Central Bank of Nigeria (CBN) on Wednesday revealed that it will circulate the new N5, N10 and N20 coins alongside the old notes.
The Director, Corporate Communications Department, of the apex bank, Mr. Ugochukwu Okoroafor, made this known in a statement.
“Given that the total cost of printing in 2011, it is evidently false that a single high value denomination (N5,000), which will be printed in a relatively small quantity, will cost N40 billion.
The proposed N5, N10, and N20 coins will also circulate side by side with notes of the same denominations until such a time when we are assured that the coins have gained wide acceptability.” Okoroafor said.
The CBN spokesman further declared that after the restructuring, Nigerians should not expect any more changes in a long time, and insisted that the restructuring will not cause inflation.
“The experience in Nigeria and other jurisdictions suggests that currency restructuring may actually help in tackling inflation. For instance, when CBN introduced the N500 banknote in 2002, inflation dropped from 16.5 per cent to 12.1 per cent in 2003.
Similarly, when the N1,000 banknote was introduced in 2005, the inflation rate actually dropped from 11.6 per cent to 8.6 per cent in 2006 and dropped further to 6.6 per cent in 2007” he said.