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CBN Prints N177Bn New Naira Notes, Destroys N1.8Trillion Others

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Central Bank of Nigeria (CBN) has said a sum of N176.9bn was spent to print banknotes between 2015 and 2018.

 

This came as the apex bank also said that it destroyed unfit Naira currency notes worth N1.89tn in two years, 2017 and 2018.

 

These were disclosed in the 2018 annual report of the Currency Operations Department of the CBN.

 

According the CBN, N64bn was spent to print banknotes in 2018, compared with N49.5bn in 2017, indicating an increase of N14.5bn.

 

The CBN in 2016 spent N33.37bn on printing banknotes as against N30.09bn in 2015.

 

The Currency Operations Department of the apex bank was confronted with a number of operational challenges, which included the sale of newly minted naira notes; poor handling habits of banknotes by the public; hoarding of the naira and high cost of currency management.

 

Other constraints were the rising cases of counterfeiting of the higher denomination banknotes; public apathy towards the use of coins; disposal of banknotes waste in an unfriendly manner, and banknotes inter-leafing and other shortages discovered in the deposits of Deposit Money Banks and Bankers Warehouse.

 

The report disclosed that “a total of 119,663 pieces of counterfeit notes with a nominal value of N98.82m was recorded in 2018.

 

“This indicated a decline of 1.30 per cent in volume and an increase of 5.77 per cent in value, when compared with 118,126 pieces with a nominal value of N93.43m recorded in 2017.

 

“The ratio of counterfeit notes to the volume of banknotes in circulation was 18 pieces per million, compared to 16 pieces per million banknotes discovered in 2017.”

 

The report disclosed that N500 and N1000 denominations remained the most commonly counterfeited banknotes, which accounted for 65.29 per cent and 34.49 per cent, respectively of the total discovered counterfeit notes.

 

It stated, “The increasing trend of counterfeiting of higher denomination banknotes underscores the need for more concerted efforts in managing the risk.

 

“The bank will, however, sustain its publicity campaign, collaborative efforts with security agencies and collation of data on counterfeits to mitigate the incidence of counterfeiting.”

 

The report explained that out of the total order of 3,351.34 million pieces of banknotes, the Nigerian Security Printing and Minting Plc delivered 2,653.31 million pieces or 79.17 per cent as of the end of December 2018, leaving a balance of 698.03 million pieces or 20.83 per cent.

 

“In addition, the company, under a domestication arrangement, delivered 22.89 million pieces of Nigeria’s N100 commemorative centenary banknotes, awarded in 2014 to Crane Currency Sweden. As of December 31, 2018, a total of 992.50 million pieces or 99.3 per cent had been delivered. However, the NSPM had written to inform the bank that the balance of 7,460,000 pieces was part of the waste generated during the printing process involved in the domestication.”

 

The currency department of the CBN sustained the disposal operations in 2018 to ensure the circulation of clean banknotes.

 

“In pursuance of this objective, the department deployed 12 banknote destruction systems and four currency disintegrating systems for currency disposal activities during the period under review.

 

On the destruction of unfit notes, the CBN said “As at the end of December 2018, a total of 1,810.54 million pieces or 181,054 boxes valued at N915,075.17 million was disposed, compared with 2,575.18 million pieces or 257,501 boxes valued at N977,231.78 million destroyed in 2017.

 

“The boxes of unfit notes disposed in 2018 decreased by 76,447 boxes, while the value decreased by N62,156.62 million or 6.36 per cent compared with 257,501 boxes valued at N977,231.78 million disposed in 2017.”

 

Mrs Priscilla Eleje, director, Currency Operations Department, said the report showed the activities and initiatives of the department to ensure, among others, withdrawal of unfit banknotes and circulation of clean banknotes in a balanced denominational mix to meet public demand.

 

To maintain the integrity of the banknotes in circulation, the department, in collaboration with Deposit Money Banks, Bankers Warehouse Plc, and security agencies, continued to intensify its efforts at mitigating the incidences of counterfeiting during the period under review.

 

A total of 119,663 pieces of counterfeit notes with a nominal value of N98.82m was recorded in 2018.

 

This indicated a decline of 1.30 per cent in volume terms and an increase of 5.77 per cent in value terms, when compared with 118,126 pieces with a nominal value of N93.43m recorded in the corresponding period of 2017.

 

It added, “The ratio of counterfeit notes to volume of banknotes in circulation was 18 pieces per million, compared to 16 pieces per million banknotes discovered in 2017.

 

“The N500 and N1,000 denominations remained the most commonly counterfeited banknotes, which accounted for 65.29 per cent and 34.49 per cent respectively of the total counterfeit notes discovered.”

 

Currency-in-Circulation grew by 0.8 per cent to N2.32tn at the end of December 2018.

 

The growth in CIC reflected the high dominance of cash in the economy and increase in economic activities.

 

A breakdown of the CIC indicated that, in terms of volume and value, the proportion of higher denomination banknotes (N100, N200, N500 and N1,000) in total rose from 41.9 to 44.3 per cent and 96.9 to 97.6 per cent, respectively.

 

The lower denomination currency notes continued to be preponderant in terms of volume, constituting 55.7 per cent of the total.

 

In value terms, it constituted 2.4 per cent of the total banknotes.

 


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E-Financial

Nigerian Manufacturing Sector Contracts for 5th Consecutive Month – CBN

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The Manufacturing Purchasing Managers’ Index (PMI) in September stood at 46.9 index points, indicating a contraction in the Nigerian manufacturing sector for the fifth month.

This was disclosed by the Central Bank of Nigeria (CBN) in its September PMI report released last week.

According to the report, four out of the 14 sub-sectors surveyed reported expansion (above the 50 per cent threshold) in September.

It listed the expansion order as electrical equipment; transportation equipment; cement and nonmetallic mineral products.

It said the remaining sub-sectors reported contractions in the following order: petroleum & coal products; primary metal; furniture & related products; printing & related support activities; food, beverage & tobacco products; textile, apparel, leather & footwear; chemical & pharmaceutical products; fabricated metal products and plastics & rubber products; while the paper product sub-sector was stable.

Production

At 47.3 points, the production level index for the manufacturing sector indicated contraction in September for the fifth consecutive month.

Of the 14 sub-sectors surveyed, five recorded increased production level, one reported same level of production, while eight recorded declines in production.

New Orders

At 46.4 points, the new orders index also contracted in September for the fifth consecutive month. Six sub-sectors reported expansion in new orders, while the remaining eight recorded contraction in the month.

Supplier Delivery Time

The manufacturing supplier delivery time index stood at 53.5 points in the month, indicating a faster supplier delivery time for the fifth time.

Six of the 14 sub-sectors recorded improved suppliers’ delivery time, five reported same level, while three recorded slower delivery time

Employment Level

The employment level index stood at 44.1 points, indicating contraction in employment level for the sixth consecutive month.

Of the 14 sub-sectors, two recorded growth in employment, three recorded same level of employment, while the remaining nine recorded lower employment level in the review month.

Raw material Inventories

The manufacturing sector inventories index also contracted for the sixth consecutive time in September to 43.0 points. Four of the 14 sub-sectors recorded growth in inventories, while the remaining 10 recorded lower raw material inventories.


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FG Sacked IST Members over Fraud- Ahmed

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Mrs Zainab Ahmed, minister of Finance Budget and National Planning, has said the Federal Government sacked some past members of the Investments and Securities Tribunal (IST) as they indulged in corruption.

FG Sacked IST Members over Fraud- Ahmed

Inaugurating the new members, the minister charged the new members to eschew corruption and be forthright.

Bar. Azi Amos Isaac was appointed as Chairman for a five year term and Bar. Nosa Smart Osemwengie, was re-appointed as member for a second term of four years.

“The problem with the tribunal has been infighting amongst members, lack of industrial harmony and series of complaints bordering on maladministration.

“This has been the bane of the tribunal and a source of embarrassment not only for the Ministry of Finance but for the government in general,” Ahmed said.

The new chairman, Azi, assured the finance minister that, “the teething issue of restiveness has been addressed since he assumed duty,” adding that, “The place is calm and the staff have become very supportive.”

Azi said since 2003, the tribunal has “given judgment in the value of assets worth over N844 billion and that from 2017 to date, they have given decisions in monetary value totalling over N28bn.

“It has not failed in its adjudicatory responsibility.

“It has carried out its assignment with candour and integrity and intends to improve on what has been on ground.”

 


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CBN Bans Customer-to-Customer Forex Transfer

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Central Bank of Nigeria (CBN) has banned transfer of foreign exchange (forex) from one customer to another.

CBN Bans Customer-to-Customer Forex Transfer

According to the apex bank, forex cash lodgements into domiciliary accounts can only be done by the account owners henceforth.

An internal memo available in the media space explains that the new guidelines are necessary to review the utilisation of inflows into customers domiciliary accounts.

The circular states: “Forex inflows cannot be credited to customers until the legitimacy of funds is established.

“They can have unfettered access by telegraphic transfers up to a limit of $40,000 monthly for payment of medical bills, school fees, subscription to professional bodies subject to existing CBN guidelines.

“Transfers from one customer to another is prohibited. Transfer within related companies is allowed subject to a limit of $50,000 per month.”

It recommended that proceeds from non-oil exports should be sold to banks, used for repayment of dollar term loans, and self-utilisation for trade transactions for LC, bills and Form A.

Also oil export proceeds from E&P companies are to be used to pay contractors and service providers employed by the oil companies in addition to the recommended uses for non-oil FX proceeds.

Offshore forex inflows from other Nigerian banks and internal account to forex transfers sourced from offshore inflows are to be used for trade transactions subject to eligibility for E-Form M.

“Upon confirmation of the legitimacy of the inflows, customers can have unfettered access, subject to a maximum of $50,000,” the document read.

“Utilisation for trade transactions subject to processing of eligible trade transactions using E-Form M. Payment for services must be backed with demand note from offshore beneficiary and other regulatory documents.

“Related party transfers are allowed to the maximum of the inflow received. The transfer request should be backed by a signed instruction from the account holder.” Payment of government fees and levies are also allowed to the maritime, oil and gas, aviation. government parastatals and export processing zones.

 


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