August 26, 2020

CBN spends N75bn to print banknotes in 2019


CBN Governor, Mr Godwin Emefiele

•Deploys $3.95bn to BDCs, others

•Discovers N365m deposit shortages in 21 banks

CBN Governor, Mr Godwin Emefiele

By Elizabeth Adegbesan

THE Central Bank of Nigeria, CBN, said it spent N75 billion to print banknotes in 2019. This represents N11.5 billion or 18 percent increase when compared to N64 billion spent in 2018.

The apex bank also deployed $3.95 billion 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 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 in 2019, compared with ¦ 64 billion in 2018, indicating an increase of ¦ 11.5 billion or 17.93 per cent.

READ ALSO: CBN disburses N237bn banknotes to merchants, others in 2019

“A total of $3.95 billion was procured in 2019, out of which $2.58 billion 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 was discovered as shortages during processing of deposits from twenty-one (21) DMBs and Bankers Warehouse PLC. Of this amount, ¦ 273.3 million or 74.77 per cent were from four (4) DMBs.

“The volume of shortages in 2019 decreased significantly by ¦ 71 million (16.27 per cent), from ¦ 436.5 million 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 denomination, valued at N1.53 billion were processed, compared with 266,578 boxes of banknotes valued at N1.56 billion in 2018. This represented a decrease of 5,927 boxes or 2.22 per cent or N28.2 million.

“At end of December 2019, a total of 157,217 million pieces or 157,217 boxes valued at N814.59 million was disposed, compared with 181,054 million pieces or 181,054 boxes valued at N915.08  million disposed in 2018. The boxes and value of disposed notes in 2019 decreased by 23,837 boxes and N100.5 million, respectively, compared with 181,062 boxes and N915.08 million, 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 in 2018. This indicated 1,344.43 per cent and 17.20 per cent increase, in volume and value terms, respectively. “

Vanguard News Nigeria