CBN Spends N58.6Bn to Print 2.5Bn Naira Notes

Central Bank of Nigeria (CBN) spent the sum of N58.618 billion to print 2.518 billion Naira notes, valued at  1. 063 trillion in 2020, according a report in the Vanguard.

This was contained in the bank’s 2020 Currency Report posted on its website.

It indicated a decrease in the bank’s expenditure on currency printing, which stood at N75. 523 billion, in 2019 and N64. 040 billion, in 2018.

According to Vanguard, the  current management of the CBN under the leadership of Mr. Godwin Emefiele, has been driving the cashless policy with a view to cutting the cost of printing bank notes and cash management, in the country.  The new e-Naira was also initiated in line with the policy.

According to the report, “The total cost incurred on printing of banknotes in 2020 amounted to N58,618.50 million, compared with N75,523.50 million in 2019, indicating a decrease of ₦16,905.00 million or 28.84 per cent.”

CBN indicated in the report that the notes were printed in-country by the Nigerian Security Printing and Minting Plc (NSPM Plc).

The report indicated that CBN, “approved an indent of 2,518.68 million pieces of banknotes of various denominations in 2020 to satisfy the currency needs of the economy, compared with 3,830.94 million in the preceding year.

“The NSPM Plc was awarded the contract for the production of the entire indent. At end-December 2020, NSPM Plc had delivered 100 per cent of the approved indent.”

It put the total stock of currency (issuable & non-issuable) in the vaults of the bank at end December, 2020 at 2.747 billion pieces, compared with 2.641 billion pieces in 2019, indicating an increase of 105.73 million pieces or 4.00 per cent.

“At end-December, 2020, the total issuable notes (newly printed notes and Counted Audited Clean notes) was 592.94 million pieces, compared with 726.43 million pieces in 2019, representing a decrease of 133.49 million pieces or 18.38 per cent,” the report showed.

Forex

The report also indicated that a total of $1.830 billion was procured over the course of 2020.

According to the report, “This value represents a decrease of USD2,120.00 million or 53.67 per cent relative to the USD3,950.00 million procured in 2019.

“This was used to fund Bureaux De Change (BDC) operations, payment of estacode and Personal Travel Allowances (PTA) to Ministries, Departments and Agencies (MDAs).”

CBN said that the receipt and authentication of foreign currency deposits by Deposit Money Banks (DMBs) reduced significantly due to the downturn in global trade in 2020.

Currency in circulation

The report indicated, however, that Currency-in-Circulation (CIC) increased by 19.06 per cent from N2.441 trillion at end December, 2019 to N2 .907 trillion at end-December 2020.

“The growth in CIC reflected the continued dominance of cash in the economy. Analysis of the CIC shows that a greater proportion was in higher denomination banknotes (N100, N200, N500 and N1000).

“The higher denomination banknotes together accounted for 63.47 per cent and 98.08 per cent of the total CIC, in terms of volume and value, respectively. The volume of lower denomination banknotes (N5, N10, N20, N50), accounted for 28.43 per cent of the total CIC and 1.92 per cent, in terms of value as at end-December 2020.”

Currency processed

In 2020, a total of 173,585 boxes of banknotes valued at N980. 758 billion was processed, compared with 260,651 boxes of banknotes valued at N1. 533 trillion in 2019.

This represents a decrease of 33.40 per cent in the number of boxes or N552. 971 billion in value of processed banknotes.

Counterfeit Notes decrease

On counterfeit notes, the report showed that a total of 67,265 pieces of counterfeit notes with a nominal value of N56.83 million was confiscated in 2020, indicating a 20.80 per cent decrease in volume and 12.18 per cent decrease in value, compared with 84,934 pieces valued at N64.71 million in 2019.

It said, “The Global standard for the number of counterfeit per million is 100. The ratio of counterfeit notes to volume of banknotes in circulation was 13 pieces per million in 2020, compared to 20 pieces per million banknotes in 2019.

The N1000 and N500 denominations constituted the most counterfeited, accounting for 69.06 percent and 30.79 per cent, of the total counterfeit notes in 2020, respectively.