The Central Bank of Nigeria (CBN) has provided response to various questions bothering on the production and availability of new Naira notes, as well as concerns about the abuse of the Naira.
In the recently published CBN update on its activities in the economy for the month of April 2020, tagged ‘CBN Moves to Cushion the Impact of COVID-19 Crisis’. The Apex Bank listed 12 Frequestly Asked Questions (FAQs) on the issues surrounding the availability of clean Naira notes in the economy.
Why is the CBN the only bank that can produce the Naira?
Section 2b and Section 17 of the CBN act gives the CBN the sole right to issue currency notes and coins throughout Nigeria and neither the Federal Government nor any state Government, Local Government, other person
or authority shall issue currency notes, banknotes or coins or any document or token payable to bearer on demand being document or token which are to pass as legal tender. Section 18 of the CBN act also gives CBN the power to print banknotes and mint coins.
Are machines for printing money available for purchase by the public?
No. The machines are only available to issuing authorities on request.
What Department of the CBN is responsible for the printing of money?
Currency Operations Department.
What is the purpose of printing polymer notes?
To extend the life span of the banknotes as the polymer notes lasts three times longer than the paper banknotes.
How long does the polymer note last?
18 to 24 months.
Where can one change currency notes?
Deposit Money banks (DMBs) and CBN.
Can coins be deposited in the Banks?
How are new currencies circulated?
CBN evacuates the finished banknotes form Nigerian Security Printing & Minting (NSPM) Plc for distribution to all CBN branches. The branch further distributes the banknotes to DMBs where they are finally released to the public via withdrawals.
Why are there no new currencies in circulation?
Analysis of the currency in circulation showed that a large and increasing
proportion of the Nigerian currency outside the commercial banking system (COB) is held by the general public who hoard a lot of the new banknotes.
Why are the lower denomination banknotes scarce?
The scarcity of lower denomination could be linked to the fact that these notes are held by the public. Absence of Automated Teller Machines (ATM) dedicated to dispense lower denominations has also contributed to the dearth of lower denomination in circulation.
Why are there huge numbers of dirty One Hundred Naira notes in circulation?
Handling habits of the general public such as, squeezing, staining, spraying etc. greatly contributes to soiling of the banknotes.
In view of the fact that our politicians and leaders abuse the naira at rallies and public events, how do we expect the people to treat the naira with care?
CBN constantly sensitizes the general public, politicians and leaders through public enlightenment campaigns through the print and electronic media on how to properly handle the naira. Further sensitization campaigns are arranged to engage politicians, leaders and other respected elders to make them change champions of the Bank’s Clean Notes Policy. This would enable the public follow suit.