Category: Special Report

  • Distinguished institutions and professionals in the nation’s human capital development

    Distinguished institutions and professionals in the nation’s human capital development

    The quest of Nigeria to get the best human capital to sustain it development before and after independence has made many administrations come out with different policies to meet yawning demands of semi skilled and skilled manpower needs of the nation. From primary, secondary and higher educational institutions, no stone has been left unrounded, today, we have the public and private educational institutions competing to outplay each other in the race of producing quality and sustained human capital for the nation’s socio-economy and political growth. How far have we gone, what have we achieved, what are the prospects. Again what are the challenges facing the professionals and institution saddled with this great national task?

    It is clear to all that government educational institutions at the all levels are in better stead in providing the human capital needs of the country, even though not much can be said of some of its products with the vast resource at their disposal. The private sector, has no doubt been partners in this quest, and at primary and secondary levels has being providing quality education though at a cost to Nigerians. Their counter-part in the government institution enjoys scholarship, subsidies and free tuition.

    Despite all this, the evolution of primary, secondary and now universities by private players in the education sector in Nigeria’s post independence era has opened a chapter of hope to improve on its skilled manpower that would evelop and sustain a virile economy.

    Today, just like the private sector did in primary and secondary school education, the private universities have come and grown to an enviable position in the Nigeria human capital development sector; their humble beginning which can be traced in two historic phases: the first during the Second Republic under President Shehu Shagari administration, between 1979 and 1983. The second phase was during the Fourth Republic under President Olusegun Obasanjo, 1999 to 2007.

    During this phase, necessary machineries were put in place to visit and scrutinize applications from individuals, religious and corporate organizations that are applying for private universities operating licence. Since then, the history of private universities in the country has not remained the same as there is much to show in terms of provision of qualitative education to the youth who, hitherto, found it difficult to gain admission into the universities before now due to limited number of space in the public universities.

    The private universities have become a fast segment of our education system, though they still constitute a small fraction of the students’ university but are completing favourably with highflyers federal and state universities in their young age in the educational sector.

    One major challenge facing private and public education providers is funding. Adequate funding will determine the quality of workforce; academic and non-academic and state-of-the art facilities such as well equipped libraries, lecture rooms, laboratories among other sundry needs to produce quality of graduates. While the private depends solely on school fees from parents, the public schools enjoy free subventions from government, it is a known fact that if not for the support from their private sector promoters, many of the private institutions would have folded up. The need for government to support the private sector through the educational intervention funds such as the tertiary education trust fund (TETFUND) has been stressed. The country to a large extent, benefit from the quality training from such institutions. The fund can be given to private institutions as research grant to assist in some crucial areas.

    Apart from the funding resource that is critical to the growth of the educational sector, management of these resources by the right leadership is another factor to the growth of the sector. That is why government at different levels now appoint professionals and tested technocrats to take care of affairs of the institutions, saddled with the responsibility of driving the developmental policies of government. Similarly, the private sector players now pouch for the best leaders to manage their businesses.

    For quite a while now, The Nation, has been going round all the states of the federation to see what the chief executive officers of respective institutions are doing. Our findings show that while some of the CEOs are performing creditably well, others are not.

    Now, who are those vice-chancellors, rectors and provosts in this democratic dispensation, who have distinguished themselves in public and private service by training excellent human capital? We are pleased to present you the following leaders in our higher institutions that are living up to expectation.

  • Redeemer’s University (RUN): set to established a Standard

    Redeemer’s University (RUN): set to established a Standard

    It has always been the desire of the Redeemed Christian Church of God (RCCG) to make a positive impact on university education in Nigeria, knowing full well that this higher level of education can play a significant role in the social and technological development of a nation.

    We have a vision for a better nation; a Nigeria of frank and candid academicians, dependable and honest artisans, God-fearing and faithful pastors, decent and law-abiding citizens, trustworthy and upright youths, caring and compassionate doctors, honourable and truthful politicians, open and sincere business community, courageous and reliable public servants.We have a vision for a country where judges are just and impartial, soldiers, policemen and women are compassionate and considerate, traditional rulers embody distinction, dignity and decorum, bankers are honest and honourable. We have a vision for a future generation of creative, innovative, inventive entrepreneurs. we want to mould a generation of kind, thoughtful and gentle adolescents, who are motivated to build and sustain a better Nigeria where peace, justice fairness and Godliness reign. We are looking forward with optimism to a Nigeria we can all defend, protect and proud of. We have a desire and an aspiration for a nation whose trust is in the Lord God Almighty. This is our vision at the Redeemer’s University (RUN), where we want to build the future of Nigeria, today. Because you embody this vision, we are honoured and privileged to have you with us as our core partners, as we RUN with the vision for a better nation.

    This is in line with the vision of Pastor E. A. Adeboye, the General Overseer of RCCG for the Redeemer’s University. Pastor Adeboye longs for the return to the glorious days of mission schools, where students acquire high quality education with the fear of God and become useful citizens.

    The Redeemer’s University take-off campus is strategically and conveniently located within the Redemption City, at Km 46/48, Lagos – Ibadan Expressway, in  Loburo,  Ibafo  in  Obafemi-Owode  Local Government Area of Ogun State, Nigeria.

    Professor Zachariah Debo Adeyewa, the current Vice-Chancellor of Redeemer’s University said one of the legacies he hopes to achieve is moving the university to its permanent site in Edo, Osun State. Adeyewa, a professor of meteorology was born on February 22, 1957, and a native of Inisan, Osun State, said funding has been a challenge to many private universities in Nigeria. He thanked Pastor Adeboye for his support for the university. The RUN vice-chancellor said the institution is IT driven in all aspect of its academic and administrative functions and boost of qualified lecturers and administrators. He obtained his first and second degrees in Physics/Meteorology at the Obafemi Awolowo University, Ile-Ife, Nigeria between 1981 and 1989. His PhD programme was sponsored by the International Programme in the Physical Sciences, Uppsala University, Sweden. He said private universities are competing well with the public universities and called for the TETFUND be given to private universities for research purpose. Professor Adeyewa is an Associate member of the Abdus Salam International Centre for Theoretical Physics (ICTP), Trieste, Italy, a Guest Scholar in Sweden (sponsored by the Swedish Institute, Stockholm). He is also a visiting scientist (Center of Excellence Fellowship) at the Nagoya University, Japan. Professor Adeyewa was an auxiliary professor of the Department of Meteorology, University of Utah, Salt Lake City, USA between 2004 and 2007. He has been at the Federal University of Technology, Akure since October 1989 where he served in different capacities until his assumption as Vice-Chancellor on October 1, 2011.

  • …brick walls all the way

    The search for the relations of the suspected killers of Cynthia Osokogu, the 24-year-old daughter of a retired general and post-graduate student of Nasarawa State University has not been an easy one. Two of the suspected perpetrators of the act, Echezona Nwabufor (33) and Ezike Illechukwu Olisaeboka (23) had claimed that they were indigenes of Anambra State.

    In fact, Olisaeboka went to the extent of naming Agulu community in Anaocha Local Government Area of the state as his native town.

    The late Cynthia was allegedly murdered by the suspects on July 22, 2012 in a hotel located in Festac Town in Lagos. The suspect did not only mention the community as his place of birth, he also claimed to be an Accounting student of Anambra State University (ANSU). Investigations, however, revealed that his claims were mere conjectures.

    This reporter undertook the task of searching for the family of the suspect, but it was impossible to see anyone who could identify his family in the said community.

    Agulu is believed to be the second largest area in Anambra State, as it is made up of 20 villages. They include Nwanchi, Nneoha, Okpu, Amaezike, Odidama, Amoji, Isiamaigbo, Ukunu, Uhueme, Obe, Obeagu, Nkitaku and Okpu. Others are Okpu-ifite, Umubiala, Amatutu, Umunnowu, Ifite-ani, Umuowelle, Umuifite and Nneogidi.

    After going round the villages, the search further took the reporter to the other communities in the entire Anaocha Local Government Area, including Adazi-Ani, Adazi Nnukwu and Adazi-enu, among others, all to no avail.

    The reporter also visited Anambra State University campuses in Uli in Ihiala Local Government Area and Igbariam in Anambra East Council. But from the records presented to the reporter by the authorities of the school from the Accountancy Department to Marketing, there was no name that sounded like Ezike Olisaemeka .

    The search took the reporter beyond Anaocha LGA, but it was like swimming in the ocean.

    At the institution where the suspect claimed to be a student, the Public Relations Officer, Ntomchukwu Fidelis, said the young man must have mentioned the institution as a decoy against his hunters.

    Be that as it may, the search continues.

  • Calls for justice as passenger’s children beat tricycle operator to death

    Calls for justice as passenger’s children beat tricycle operator to death

    They have killed my husband! They have killed my husband!” This was the refrain on the lips of Mrs. Comfort Akinwande, wife of a tricycle operator, Sunday Akinwande, allegedly beaten to death by the children of a female passenger following a disagreement they had over transport fare in Sango-Ota, Ogun State.

    The incident, which occurred at Joju area of the town penultimate Wednesday, resulted in a protest by operators of tricycles, popularly called Keke Marwa, as well as other residents. Eyewitnesses said the deceased operator had just returned from the mechanic workshop where he had gone to fix his tricycle when a woman identified as Iya Shaba approached him and said she wanted to charter his tricycle to the bus stop near her residence.

    Akinwande was said to have charged N200 for the trip and the woman agreed to pay the said sum. But trouble started for the 37-year-old transporter when upon getting to her destination, Iya Shaba refused to pay the agreed fare. Instead, she offered Akinwande N150.

    A resident, Layiwola Isiba, said: “Sunday (Akinwande) had just returned to his park in Maltina Junction, Anisere in Joju area of Sango-Ota when a woman called Iya Shaba chartered his tricycle to a place called Obed Pepple Junction. She had some plastic containers and two kids with her and had agreed to pay N200 only for her to renege on getting to her destination.

    “When it was time for the woman to alight at the bus stop, she handed the deceased the sum of N150. She claimed the agreement they had was that she would be dropped at her residence; a claim the deceased said was not true. She left the scene and headed home, but this angered Akinwande who chased her in his tricycle.”

    The altercation that ensued angered two grown up sons of the woman who rushed out of their home to confront Akinwande. They allegedly beat Akinwande until he fell down and became unconscious.

    Throwing more light on the incident, a source who pleaded not to be named said: “Two male children of the woman, Shaba and Falapa, gripped Sunday for having the audacity to confront their mother. They beat and dragged him on the floor until he collapsed.

    “Initially, they thought he was pretending. But it later dawned on them that he was no longer breathing. They even beat the elder brother of the deceased who believed that they beat Akinwande with juju and therefore demanded for the remedy.

    “Policemen from Sango-Ota intervened and arrested the errant children while their mother has since bolted into thin air.

    “We took Sunday to a nearby private hospital where he was confirmed dead. His colleagues who could not come to terms with his death took him to another private hospital where he was again certified dead.”

    Akinwande’s death was said to have angered many residents of the area, who stormed the residence of his alleged killers for a reprisal. The protesters who chanted war songs however vandalised the building when they did not meet the woman at home.

    Our correspondent gathered the woman’s husband, popularly called Baba Ibadan, who is also the owner of the building, had been missing for some time, and that was why it was difficult to caution the woman and her children.

    Describing the deceased as an easy going person, a resident, Madam Theresa Isiba, said: “Sunday was an unassuming person. He could not hurt a fly. He was a very hardworking person and a responsible family man. Iya Shabi and her children have been terrorising residents unchallenged for some time now. That was why no one could rescue Sunday from them.”

     Lamenting her sudden transition into a widow, Akinwande’s wife called for justice. “My husband was a very gentle person. How do I raise our three children? The enormous task of caring for the family is now my responsibility, and there is no one I can run to for help.

    “I want those who killed my husband to be punished accordingly because he was going about his legitimate job when they killed him for no good reason.

    “My husband had never had any quarrel with the woman and her children. On the day of the incident, he went to fix his tricycle and only returned to the park at about 4.30 pm. The woman was the first passenger he would pick, only for her to instruct her children to beat up my husband.”

    The 33-year-old widow called for diligent handling of the matter so as to bring the masterminds to book.

    She added: “The woman called Iya Shaba, who is now on the run, should be arrested and prosecuted because she was the one who instructed her children to beat my husband to death. She should not be allowed to escape justice at all.”

    A chieftain of the tricycle operators association in the area, Pastor Mike Oyebade, said: “Sunday (Akinwande) was an easy going person. He served as out treasurer until his death. He was hit with juju and his complexion changed immediately.”

    A community leader who did not want his name in print blamed the incident on the inability of the landlords in the area to caution Iya Shaba and her children.

    He said: “The landlords in the area have become totally indifferent to the actions of the woman and her children. That was why none of them could come out to rescue the late Sunday when he was being beaten by her two sons.”

    The body of the Ondo-born transporter has since been deposited at the General Hospital, Ifo, Ogun State.

    Confirming the incident, the spokesman of the Ogun State Police Command, Mr. Muyiwa Adejobi, said: “The Homicide Section of the State Criminal Investigation Department is currently handling the case. I can confirm to you that two suspects are being detained over the death of the tricycle operator and they will soon be charged to court.”

  • On the trail of Cynthia’s suspected killers’ families

    On the trail of Cynthia’s suspected killers’ families

    Since she was brutally murdered in a Lagos hotel in July, the dust is yet to settle on the death of delectable Cynthia Osokogu. The circumstances in which she was killed by two men she had met on Facebook left the whole nation in shock.

    Two months after the ugly incident, her body is yet to be committed to mother earth even though the family has performed the funeral rites. Police insisted they were yet to conclude the necessary investigation and so did not release her body the day it was scheduled for burial. The family has tentatively fixed her final burial for October 5.

    Equally shocking, however, is that beyond their personal names, not much is known about the family backgrounds of the two suspected killers of Cynthia, Nwabufor Echezona and Ezike Ilechukwu Olisameka. Even their real names are shrouded in controversy as they were initially identified as Nwabufor Okomu and Odera Ezekiel.

    While some believe the police could deliberately be shielding their real names for the sake of thorough investigation, our correspondent in Nnewi, Anambra State, where one of the suspects was said to have been arrested, swung into action to locate the affected families, but all the efforts he made in the four quarters of Nnewi , Nnewi North Local Government Area to locate the family were fruitless as nobody seemed willing to be associated with the suspects.

    It is a trend that seems to confirm the saying that success has many parents but failure is an orphan. It would most probably have been easier to locate the families of the suspects if they are being honoured for one heroic act or the other.

    When the news later broke that the two suspects hailed from Agulu, Anaocha Local Government Area, Anambra State, our man again swung into action, but all the efforts he made to locate the families were to no avail. Neither the visits he made to Agulu nor the phone calls he made to prominent indigenes of the town yielded any meaningful result.

    At Nwagu junction, he had been told that Agulu has 22 villages that boast of prominent citizens. But as he mentioned the issue of Cynthia’s killers, all the songs that were being sung about the greatness of Agulu ceased and none of the people on hand was willing to be engaged in further conversation.

    Taking his destiny in his own hands, our correspondent headed for Okpifite, one of the Agulu villages, but there were no signs of such names. A guide who exhibited some admiration for journalists, however, encouraged our reporter to come back the next day, promising to make his own findings and avail the reporter with whatever information he had.

    Rather than return to Nnewi, our reporter went to a neighbouring village named Nkitaku, which is the native community of Governor Peter Obi, and then to Nwanchi village where Igwe Elochukwu Obodoako hails from. He also went to Amaoji, the native home of Chief Azubuike Okoye, but there was no clue of the families.

     Our reporter also visited Obeagu where Sir Eric Okoye of Juhel Pharmacy comes from, and Umuowelle where the Provost of the Federal College of Education, Umunze, Prof. Josephat Ogbuagu, hails from before heading for Nneogidi, the new base of Prof. Dora Akunyili and Umunonwu, the hometown of Dr Ejike Imoke, an international business tycoon, but there was no clue.

    After visiting 15 of the 22 communities, our correspondent returned to Nnewi. Nnewi is made up of four quarters, namely Umudim, Uruagu, Nnewichi and Otolo. It hosts most of the manufacturing industries in Anambra State, which is why it is nicknamed the Japan of Africa. But the people were willing willing to speak on any issue but Cynthia’s killers. Those who volunteered to say anything would simply say her suspected killers are not from the area.

    Nnewi boasts of such prominent names as the late Dim Chukwuemeka Odimegwu Ojukwu; the late Akwueke Nwafor Orizu; former Minister of Finance and Economic planning, Dr. Chu Okongwu; Dr Cosmas Maduka of Coscharis Group, who has the franchise for BMW, Ford, Land Rover, among other vehicles in sub-Saharan Africa and Dr Chika Okafor of Chikason Group, owners of A-Z Petroleum. Others include Chief Joe Obijiaku of Middle Point Group, who has the franchise for Polyguard Auto Care products; Chief Innocent Chukwuma of Innoson Group, manufacturers of vehicles and other items and Chief Gabriel Chukwuma of Gabros International Football.

    Everyone our correspondent contacted was willing to speak about the big names from the area, but they recanted as soon as the topic changed to Cynthia’s killers.

    On September 12, he returned to Okpifite only to find the village’s vigilance group surrounded by the residents, looking worried as they discussed the presence of kidnappers in the area. When he met the guide that had earlier promised him some information on the family of Cynthia’s killers, he started talking about the arrest of a kidnapping suspect. He reminded the man about their earlier discussion on Cynthia’s killers, but he said nobody had such names in Agulu.

    During further enquiries in Nnewi, some residents confirmed that one of the suspects was actually caught in Nnewi but that does not make the suspect an Nnewi man. But a man who said Ilechukwu is from Otolo-Nnewi advised our correspondent to go to Otolo.

    At Otolo, our correspondent asked about the Ilechukwu family from the Palace Secretary, Prince Joseph Ikeotuonye, but he said: “Otolo is as large as Awka. There are too many Ilechukwus in Otolo, but it is not to my knowledge that Cynthia’s killers are from Nnewi. What I know is that the police arrested one of them in Nnewi, and he could be arrested anywhere.

    ‘’I can’t say particularly that I know the family, because the name in the papers is different from the surname, Ilechukwu, that we have in Nnewi. Our own Ilechukwu is a surname but the one in the papers is a middle name.”

    On his part, the Chairman of Nzuko Ora Nnewi, the apex decision-making body of Nnewi, Chief Agu Onyeka, said: “Nnewi is big, but we don’t have such a name. If we have it, I will not hesitate to tell you about that family. I only know that one of the suspects was arrested in Nnewi and nothing more”.

  • Economics of the N5000 debate

    Economics of the N5000 debate

    The statement by the central bank of Nigeria that N5, 000 will be introduced and N5, N10, and N20 notes will be coined in 2013 has generated a lot of debate. Many of the contributions have however strayed off the key point. Namely, the reason currency notes and coins are necessary.

    • Retail Payment Requirements

    Notes and coins are held primarily for retail payments. To be relevant, their face values, nature, sizes and weights must be suited to the retail transactions they are needed for.

    There are two types of retail payments: highly repetitive small value transactions such as urban transportation, sweets, cigarettes, cola nuts, fruits, vegetables, snacks, cooked food, sachet water, soft drinks, juices, beer; newspapers, haircuts; phone cards, and, less frequent, relatively high value transactions such as clothing, footwear, watches, raw foodstuff, poultry, livestock, fuel, spares parts, and local airfares.

     

    Optimising Naira coins

     

    Naira coins must be designed by the central bank with the first category of retail transactions in focus because their repetitive nature and the conditions under which they must happen, such as in crowded markets, stadia, streets, bus stations, airports, congested traffic, and varying weather conditions including rainy, sunny, and humid conditions, mean that notes are ill-suited for them.

    Metal coins will fare better under these conditions, which is why countries regularly upgrade their coinage to keep pace with the prices of this category of retail items.

    Nigeria’s coins were adequate for these transactions when we spent pennies and shillings modeled after the British pound sterling before independence, and a little over a decade after independence.

    Nigerians valued the coins and spent them with relish, because one or two pieces in the pocket sorted the daily payment needs of the average person, child or adult. Naira coins that replaced those in 1973 remained very adequate for all the small value transactions until the late eighties when they began to lose correspondence with retail prices, and Naira notes increasingly took their place.

    Attempts to reform the coinage to date have never spoken directly to the need for the face values of Naira coins to relate such retail items as bus fares, and the prices of newspapers, refreshments and fast food.

    The Soludo coin reform that raised the maximum face value of coins arbitrarily to N2, without asking how much a school child needed for soft drink and snacks at break time, failed for this reason. The Lamido proposal to coin N5, N10, and N20 is in the right direction, but is equally arbitrary, as it lacks correspondence with current values of retail items, and is also bound to fail. How many pieces of the Lamido coins will a school child need to hold just for school run and refreshment at break time? It will require too many pieces to make sense for school children, much less adults.

    A robust coinage must be adequate for retail payment needs of all children and adults. Naira coins that would make sense today will fall in the range of N1, N2, N5, N10, N20, N50, N100, N200, N500, and N1000. Just before anyone screams, remember that the two pound coin is more that N500 in face value, and the coining of the five pound note is imminent in the UK.

    They thought us how to use coins. They have done a good job of maintaining their coinage, it’s about time we put some dignity back into Naira coins. Japanese six denominations of coins range from Y1 to Y500, and one Yen exchanges for two Naira.

    Nobody holds the naira coins today because N2 maximum face value makes absolutely no sense. It is a waste of the country’s resources and time to mint such. N1 and N2 should be the minimum, and small enough, like the farthing of old, and they would make sense. N20 Naira maximum coin still will not make sense because it still does not buy a soft drink or an apple, and no one will hold them.

    If you stamp N500 or N1000 as the maximum value on the same coins today, everyone will hold them, as in other countries where the coinage relate to retail prices.

     

    Optimising Naira Notes

     

    Naira notes must be designed by the central bank with the second category of transactions in mind. If naira notes are to make sense, I should be able to fill my tank with just a piece of Naira note. People should be able to pay for live chicken, goat, or turkey with a piece or two of Naira notes. A bag of rice, a tin of vegetable oil, should not require more than one or two pieces of Naira notes.

    There should be notes with face values suited for the purchase of ram, shirts, suits, shoes, watches, car tyres, and other spares parts if Naira notes are to be worth printing and spending. The proposed introduction of N5000 is in the right direction, but is equally arbitrary, as it is not proposed in reference to retail price realities, and is hardly the optimal highest face value for the Naira notes at the moment.

    It is the end that justifies the means. It is the items that people need to pay for with notes that should determine how much we print on the currency notes. That is the economics of Naira notes denominations. To be sensible today, Naira notes should take face values of N500, N1000, N2000, N5,000, N10,000, and N20,000 (current value of the lowest airfare); where N500 and N1000 could circulate as both notes and coins until further notice.

    I have arrived at these suggestions by trying to connect the face values of Naira notes with realities of retail prices. But the examples of other some other countries also point to the same direction. Japanese notes are only four denominations: Y1000, N2000, N5000, and Y10,000; and one Yen exchanges for two Naira.

    Suggestions by Professor Soludo a few others that the Naira be re-decimalized by knocking of a few zeroes are uncalled for, being more suited to currencies with seven digits or more in face values, as in post hyper-inflation Ghana, Zimbabwe, and a series of Latin American and Eastern European countries. The Japanese example of re-denomination necessitated by realities of retail prices is more appropriate to the current Nigerian challenge.

    Apart from speaking directly to the realities of retail prices, the suggested re-denomination will have the added advantage of reducing the pieces of notes the central bank have to print, store, distribute, and maintain. There were as many as six billion pieces of naira notes in circulation in 2011, compare to one billion pieces in 1985, and four billion pieces in 2005.

    We should introduce larger denomination notes to push that number back to less than two billion pieces. Banks will no longer require as many bullion vans, bulk counting rooms, note counters, counting machines, and those little bags they must now give you when you withdraw some cash. Buyers and sellers will waste less time counting and recounting notes as if under a spell.

    Handing of naira notes by the public will become inconspicuous. Relatively higher face values will ensure they are used less often, treasured and kept neat. People are unlikely to spray reasonably valued notes at parties and other social events.

     

    Electronic Payments

     

    The two categories of retail transactions to which coins and notes have been related above are not what e-payment instruments are about. E-payment instruments are more suited to transfer of funds from one person to the other, especially when bulk sums are involved. E-payments relate to wholesale transactions, as opposed to cash which relate to largely spontaneous, mostly anonymous, small value repetitive transactions.

     

    Misconceptions

     

    In the presence of generally acceptable small-denomination coins, large-denominations will not be inflationary. It is actually the current situation in which lower denomination coins are not in circulation that precipitates inflation as the general public put pressure on retailers to round up to the nearest banknote.

    The currency, note or coin is best viewed as a measuring rod or ruler. There is no reason to expect that the public will wear oversized dresses if the tape-rule is too long. We can press the analogy with the ruler a little further: school children, dressmakers, architects, land surveyors, and civil engineers all use one type or the other of what is basically the same thing, the ruler: multiples of millimetres. The only difference is size.

    Currency is just like that. It must be made available by the issuing authority in wide enough variety or denominations to suit the needs of different users.

    Many economies in which large-denomination notes and coins circulate actually have some of the lowest inflation rates often combined with impressive records of growth. US, Japan, UK and the Euro area are some of the examples. The Euro provides a good illustration: there are 8 denominations of coins, and 7 denominations of notes.

    This will provide enough flexibility and adaptability to both very small and very large transactions. Since there should be small-denominations that are appropriate for any transaction, there is no reason why the presence of large denomination should affect inflation in any way.

    Too many denominations will not be confusing either. The public will choose the denominations they want and others will become unpopular. The range of measurement units from the millimetres to the kilometre is quite broad yet it confuses no one. Rather it helps everyone. The Euro’s eight denominations of coins and seven denominations of notes means there are fifteen different units of currency circulating in the Euro area. Nigeria can take a cue from that.

    The policy clue is that the issuing authority should make a fixed quantity of all the relevant denominations for a start, and subsequently increase each denomination only at the rate at which their inventory is depleted.

    Large-denomination coins are unlikely to be melted by metal-smiths for jewellery if the central bank ensures that coins have very low and  insignificant intrinsic value. What counts is the face value of each coin. It matters very little how much zinc or copper, or silver it contains. Kill the incentive to melt the coins away. That is the message. It is instructive that American public simply throw the 1-cent away or abandon it at home. There is no incentive to melt it down.

    Large-denomination currency notes will not encourage counterfeiting. We should be careful not to throw out the baby with the bath water. Fear of possible counterfeiting should not stop us from doing the needful. We need to do what is necessary first, and take measures to protect it afterwards. The hundred-dollar bill is probably the most widely counterfeited currency bill in the world. Rather than withdraw it from circulation, the US government has simply invested a little more in security proofing.

     

    •Dr. Teriba, who wrote in from Lagos, can be reached at ayo.teriba@econassociates.c