CBN spends N75bn to print banknotes in 2019

The Central Bank of Nigeria, CBN, said it spent N75 billion Naira to print banknotes in 2019. This represents N11.5 billion Naira or 18 percent increase when compared to N64 billion Naira spent in 2018. The apex bank also deployed $3.95 billion Naira To Bureaux De Change (BDCs) and pilgrim operations, as well as, payment of estacode and personal travel allowances to Ministries, Departments and Agencies (MDAs) during the period.

Meanwhile, the CBN said it discovered N365.5 million Naira as shortages during the processing of deposits from twenty-one (21) Deposit Money Banks (DMBs) and Bankers Warehouse Plc during the period. The apex bank disclosed these in its Currency Operation Department Annual Report for 2019. The regulator stated: “The total cost incurred on printing of banknotes amounted to N75.5 billion Naira in 2019, compared with ‎64 billion Naira in 2018, indicating an increase of ‎ 11.5 billion Nairaor 17.93 per cent.

“A total of $3.95 billion Naira was procured in 2019, out of which $2.58 billion Naira was supplied to Lagos branch and $1.38 to Abuja branch, for distribution to other branches. This was used to fund BDCs and Pilgrim operations, as well as, payment of estacode and personal travel allowances to Ministries, Departments and Agencies (MDAs).” According to the report, “In 2019, a total of N365.5 million Naira was discovered as shortages during processing of deposits from twenty-one (21) DMBs and Bankers Warehouse PLC. Of this amount, 273.3 million Naira or 74.77 per cent were from four (4) DMBs. “The volume of shortages in 2019 decreased significantly by 71 million Naira (16.27 per cent), from 436.5 million Naira in 2018.

The downward trend was due to the abolition of the time-expired policy of the Bank and upward review of penalty charges from 50 per cent and 200 per cent to 100 per cent and 400 per cent for penalty charges on shortages and counterfeits, respectively, in deposits by DMBs deposits. This measure encouraged the DMBs to strengthen their internal control mechanism.” The report stated further: “In 2019, a total of 260,651 boxes of banknotes of different denominations, valued at N1.53 billion Naira were processed, compared with 266,578 boxes of banknotes valued at N1.56 billion Naira in 2018. This represented a decrease of 5,927 boxes or 2.22 per cent or N28.2 million Naira. “At end of December 2019, a total of 157,217 million pieces or 157,217 boxes valued at N814.59 million v was disposed, compared with 181,054 million pieces or 181,054 boxes valued at N915.08 million Naira disposed in 2018. The boxes and value of disposed notes in 2019 decreased by 23,837 boxes and N100.5 million Naira, respectively, compared with 181,062 boxes and N915.08 million Naira, disposed in 2018. “A total of 865,775 pieces of various denominations of mutilated banknotes valued at N45.99 million was audited, disposed and replaced in 2019, compared with 59,939 pieces valued at N39.24 million Naira in 2018. This indicated 1,344.43 per cent and 17.20 per cent increase, in volume and value terms, respectively. “