Fake news is a global problem. It has caused many avoidable losses in both human and material terms across the world. However, due to its ubiquitous nature, it might be tempting to ignore fake news as a problem that is without solution, thereby allowing it to spread in accordance with the sinister motive of those behind them.
In the business and corporate world, fake news is causing all manner of catastrophe, leading to the death of many budding and promising organisations, especially those who fail to respond appropriately. Once people lose confidence in an institution or organization, it becomes doubly difficult for such entities to function optimally.
The Central Bank of Nigeria (CBN), led by Dr Olayemi Cardoso, has had to deal with many fake news in form of misinformation or disinformation, in addition to its mandate of “ensuring monetary and price stability, issuing legal tender currency, maintaining external reserves, promoting a sound financial system, and acting as a banker and financial advisor to the Federal Government”.
Consider the recent fake story with the headline: “CBN Unveils New ₦5,000 and ₦10,000 Banknotes to Enhance Cash Transactions.” The story said the introduction of two new denominations was part of efforts “to streamline cash transactions and improve liquidity management.” It also quoted *Deputy CBN Governor, Dr. Ibrahim Tahir Jr.* as saying that the move was aimed at reducing cash-handling costs and providing Nigerians with more efficient means of conducting large transactions, which “aligns with global best practices.”
Many would have expected discerning Nigerians to know that it was fake because there were more than enough red flags. For starters, the CBN, to which the story is attributed, has four Deputy Governors, but none of them is named Ibrahim Tahir Jr., the so-called official that signed the statement.
CBN under Cardoso has four deputy governors. They are Dr. Bala M. Bello (Operations), Mr. Muhammad Sani Abdullahi (Economic Policy), Mr. Philip Ikeazor
(Financial System Stability), and Ms. Emem Usoro (Corporate Services), so from where did those behind the fake story get the name Ibrahim Tahir Jr?.
Still, the CBN did not waste any time in dismissing the story – which had gone viral on social media – as fake. They have been here before. They know full well the importance of shooting down false stories before they develop wings and hit cruise level and out of the range of denials. It is better to act swiftly than to engage in damage control, the apex bank must have learnt.
In any case, the idea of having a banknote of higher value than N1,000 in Nigeria did not start today. I am sure many Nigerians still remember when, in August 2012, the then CBN governor Sanusi Lamido Sanusi announced the apex bank’s intention to introduce N5000 notes by early 2013. He argued that the plan would enhance the quality of banknotes, incorporate more effective features for the visually impaired as well as reduce the cost of production, distribution, and disposal of banknotes.
Sanusi further said that under the new structures, the existing denomination of N50, N100, and N200, N500 and N1000 will be redesigned with added new security features, while the lower notes of N5, N10 and N20 will be converted to coins.
That announcement by Sanusi generated a heated debate in the country with critics, including former President Olusegun Obasanjo, saying that introducing a N5000 note will cause inflation. The then President of the Nigerian Bar Association (NBA) Okei Wale also opposed the idea and called for Sanusi’s resignation as CBN governor, threatening to go to court if the CBN insisted on going ahead with the plan.
In response to those opposed to his plan, the then CBN governor, speaking at the sixth Annual Chartered Institute of Bankers of Nigeria in September 2012, said the N5000 note will not increase inflation in the country and the apex bank was not going to spend N40bn to print the new notes. He said the cost of printing all denominations of currency in 2009 was N47bn, adding that by 2011, the CBN brought the cost down to N32bn, and by 2014, the cost will further be reduced to N25bn.
Sanusi then took a swipe at Obasanjo. “You know my uncle, or my father, the former Head of State, Gen Obasanjo… You know I like Obasanjo, he is a very successful farmer, but he is a very bad economist…. He said this higher denomination will cause inflation and impose hardship. I said ah ah, Gen Obasanjo did N20, he did N100, N200, N500 and N1000. He has introduced more higher denominations in Nigeria than any head of state.”
It would also be recalled that the Sanusi-led CBN – with Mr. Tunde O. Lemo (Operations), Alhaji Suleiman Barau (Corporate Services), Dr. (Mrs) Sarah O. Alade (Economic Policy) and Dr. Kingsley Moghalu (Fin. System Stability) as deputy governors – got the tacit endorsement of the then economic management team led by Dr Ngozi Okonjo-Iweala. At the end of its weekly meeting led by then President Goodluck Jonathan, the members, including then Anambra State Governor and a banker Peter Obi, said the move was a step in the right direction.
In fact, Peter Obi wondered why Nigerians were kicking against the move. He said, “Nigerians should worry about manufacturing, issue of investing in agriculture and agricultural products, issue of manufacturing and other activities that will help the economy not whether we have N5000 note or not.”
For his part, Shamsuddeen Usman said, “the CBN is to propose and for Mr. President to approve. And since Mr. President has approved, really, what is important is to just explain. I personally had some concerns about the coins, but since some discussions with the CBN governor, he has actually clarified that even the media didn’t get it right. The coins are being introduced on an introductory basis.”
Eventually, after the protracted, nay heated debate, the Federal Government and the CBN bowed to pressure and suspended the planned introduction of the N5,000 banknotes. Even those who argued that having a N5000 note will reduce the craving for the dollar by Nigerians agreed that there was a need for enlightenment to get the trust of Nigerians so as not to create panic.
Since the suspension of the idea by the Jonathan administration in 2012, nothing has been heard about it until now. But the CBN has made it clear. There’s no attempt to introduce N5000 and N10000 banknotes at the moment. When there is, the Nigerian public and all the relevant stakeholders would be informed appropriately.
Nasir writes from Abuja
