*Denies responsibility for scarcity of new notes
BY MICHAEL EBOH

The Central Bank of Nigeria, CBN, yesterday, said it was working with security agencies to begin the arrest of persons engaged in the trading of new naira notes.

The CBN in a statement by Mr. Ugochukwu Okoroafor, Director, Corporate Communications, said it was aware of the unpatriotic practice of some Nigerians, who, despite media sensitization by the CBN, continue to sell new Naira notes to interested members of the public.

He said: “In our determination to nip the unwholesome practice in the bud, the CBN has perfected plan of trailing such currency notes being sold to individuals, using the serial numbers.

“The CBN is working in concert with the police and other security agencies to arrest erring persons and therefore warns those bent on perpetrating the unlawful act to desist forthwith or risk facing the long arm of the law.”

The CBN also denied claims attributing the artificial scarcity of new naira notes in circulation to its refusal to disburse such notes to commercial banks.

According to Okoroafor, the apex bank operates a ‘clean note policy’ and not a mint policy, adding that this implies that commercial banks and other customers will only be paid in clean notes made up of processed and mint notes.

He said the CBN has established channels of distribution through which it disburses clean naira notes to licensed banks in Nigeria, noting however, that the CBN always pays out lower denominations of N5, N10, N20 and N50 notes to commercial banks in mint.

Okoroafor also debunked allegations that the CBN are in the practice of hoarding new currency notes only to release same to their agents, who pay them commissions after selling the mint naira notes to interested members of the public.

He said: “The CBN does not have the responsibility for the supply of cash to Automated Teller Machines, ATM, as ATMs are owned and deployed by Deposit Money Banks, as well as independent outfits”.

It is the responsibility of these banks and these other licensed outfits to generate and load ATM-fit banknotes into the cash dispensing machines from cash deposits.

“Mint notes are not ATM-fit notes and the responsibility of CBN is to issue cash to its customers by way of cash withdrawals. The CBN only distributes cash to the commercial banks which in turn supply the ATMs of their respective banks.

“Exchange windows exist at CBN branches nationwide for the swapping of old and worn out currency notes for new ones by citizens, at no extra cost. The CBN does not deal with private customers as commercial banks. It is the responsibility of commercial banks to interface with their customers in terms of naira notes.