Expect new generation naira notes before June next year – CBN

The Central Bank of Nigeria (CBN) has revealed plans to
create a new generation of naira notes before the second
quarter of next year, 2014.

This development was made known by the Deputy
Governor, Operations, CBN, Tunde Lemo.

Lemo, however, said that the apex bank had previously
made it known to the public that it would change the
current polymer notes to paper, but all notes in circulation
would be withdrawn at the same time.

"Nigerians will be having new generation notes in paper in
the next few months. We will wait until the notes wear
and tear. When they wear, and they travel back to Central
Bank, of course they will be re-issued," he stated.
According to him, the life cycle of a note in Nigeria is
between six months and a year and if CBN took that
decision six months ago, "I reckon that in the next three to
six months you will begin to see these denominations re-
appear in paper." Lemo had in 2012 defended the bank's
plans to stop the printing of lower denominations of the
naira in polymer and revert to paper currency because the
former reportedly fades too much, making the notes
unsuitable for circulation.

He then promised that by the middle of last year, the
Central Bank would have started producing the lower
denomination notes in paper not in polymer. But due to
logistics challenge, the plan was not accomplished. "My
plea is that Nigerians should be patient with us. It wasn't
the fault of the CBN; it is just because we have to go back
to the drawing board. We will correct that in the course of
the year. Polymer certainly will be phased out. In fact, no
new note is being printed in polymer now," said Lemo.

On the scarcity of the lower denomination notes, Lemo
blamed inflation and commercial banks for what he called
"low transactionary value" and "poor circulation,"

respectively. "For the lower denomination, well, I think
the banks are really the ones that are really not allowing
the lower denomination in circulation, largely, because of
the cost and carrying value. Most people don't require
small denomination. But for buying things in the market,
if you look at the veracity, you find out that it is the
people that are losing interest because of its bulkiness and
inflation," he said.

Lemo has urged law enforcement agencies to arrest all
illegal hawkers of new naira notes. He also called on
commercial banks to keep watchful eyes on their staff to
avoid being used as conduit for illegal transfer of new
notes to unauthorised hands. He said this should be done
to ensure effective protection of the currency from abuse.

Via: Nigeria Tribune