By Chioma Obinagwam
…as disposed notes hit 49.68% of total currency in circulation
As part of efforts to improve currency operations management in the country, Nigeria’s apex bank, the Central Bank of Nigeria (CBN) has said that to it would go tough on those who engage in sharp practices against Nigeria’s currency Naira.
Confiance News gathered from the bank’s 2018 Currency Operations Annual Report, posted on its website on Wednesday.
“The Department will sustain efforts to conduct operational research and benchmark best practices to improve Currency Operations Management. The Department will continue in its collaboration with security agencies to mitigate the sale of Naira banknotes, through sting operations and other activities,” the bank disclosed in a statement.
The report showed that total number of disposed unfit Naira notes recorded 6.36 percent or N62,156.62 million percent decline in 2018.
This represents N915,075.17 million disposed as at December 2018 compared with 2,575.18 million pieces or 257,501 boxes valued at N977,231.78 million disposed in 2017.
Although the CBN recorded 6.36 percent decline in disposed unfit notes in the review period (2018), the total value of the disposed notes at N915,075.17 million translates to 49.68 percent of the total value of currency in circulation at N1,841,937.00 million as at 2018.
However, the CBN noted that it was able to achieve a decline in the value of disposed notes through its banknotes disposal operations spear headed by its Currency Operations Department (COD).
“The Department sustained the banknotes disposal operations in 2018 to ensure the circulation of clean banknotes. In pursuance of this objective, the Department deployed 12 Banknote Destruction Systems (BDS) and four Currency Disintegrating Systems (CDS) for currency disposal activities during the period under review,” the apex bank disclosed.
The apex bank also noted that the department was confronted with a number of operational challenges, which included, “sale of Naira notes; poor handling habits of banknotes by the public;hoarding of the Naira and high cost of currency management. Other constraints were rising incidences of counterfeiting of the higher denomination banknotes; public apathy in the usage of coins; disposal of banknotes waste in an eco-unfriendly manner, banknotes inter-leafing and other shortages discovered in the deposits of DMBs and Bankers Warehouse.”
Nevertheless, the apex bank has said it is taking steps to address the above challenges.
“The Department will sustain efforts to conduct operational research and benchmark best practices to improve Currency Operations Management. The Department will continue in its collaboration with security agencies to mitigate the sale of Naira banknotes, through sting operations and other activities.
“Furthermore, the Department will sustain its intervention in addressing the suboptimal circulation of lower denomination banknotes, through adequate supply and distribution in collaboration with DMBs. Also, the recycling of banknotes waste to reduce the carbon footprints will remain a major focus of the Department.
“To stem the tide of sale of Naira notes, curb counterfeiting and poor handling of the Naira notes, the Department will continue to strengthen its collaboration with relevant stakeholders in the Harmonized Publicity Campaign and leverage the cashless policy.”
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