Economy
CBN says hoarding, counterfeiting, reasons for naira redesigning
CBN says hoarding, counterfeiting, reasons for naira redesigning
The Central Bank of Nigeria (CBN) on Thursday said counterfeiting and hoarding were the reasons for redesigning and issuing new naira notes.
Mrs Amina Abdulmalik, Deputy Director, Currency Operations Department, CBN, said this at the apex bank’s special day, at the ongoing 36th Lagos International Trade Fair in Lagos.
“We have a huge challenge of counterfeiting; Nigerians have set up factories and are just chunning out bank notes because those bank notes don’t come back into the banking system.
“We are not able to fish out the counterfeits; and most central banks in the world redesign when they see the level of counterfeits growing. But if you don’t have confidence in your bank notes then there’s a problem.
“Also hoarding is another challenge; people simply love to keep this money at home, because of that hoarding, you find out that 84 per cent of our currency in circulation is outside the bank.
RELATED STORY: 11 Dead, 7 Injured In Accident In Kogi – FRSC
“Whoever does that is into illegal activities, like kidnapping. If you are afraid of taking your bank notes to the bank, then you have something to hide,” she said.
Abdulmalik also said the apex bank’s major mandate, which was issuance of currency was a serious challenge to the bank as it involved lots of activities.
She said, “before we issue currency we have to plan, we have to determine the volume of bank notes that will be appropriate for the economy.
“This, we have been doing over the years and once this is done we have to send it to our Security Printing and Minting company to print.
“They are CBN’s sole printer. We have a printer in Lagos and Abuja, and that is where CBN does all the printing of currency.
“When printing is done we have to distribute, distributing the currency around Nigeria is lots of work which involves lots of logistic and costs.
“The bank notes we issued are meant to come back where they will be processed into fit and unfit. The unfit notes are meant to be withdrawn and the fit ones reissued.
“Unfortunately in Nigeria, once we issue, the notes disappear. These are the challenges around currency management that necessitated us to do a redesign,” she said.
She said redesigning of bank notes was a normal CBN process, and the responsibility of Central Banks around the world.
She said, “we’ve done it in the past, it did not generate concerns but because of the social media, we seem to have a challenge.”
“We registered CIT companies, if you go to our website, you will see the requirements, you can move cash, that aspect of distribution, we can outsource to the private sector.
“So it’s something that we expect Nigerians that have the resources to do.
“You can also participate in processing, you can go to our website, you will see the requirements, if you have the required capital, we can outsource that to you.
“Banks can bring in the bank notes, you help them to sort clean and unclean. That will also help in currency management.
“There’s need to reduce that cash in circulation so that we can use other channels.”
Dr Michael Olawale-Cole, president, Lagos Chamber of Commerce and Industry (LCCI), urged the apex bank to consider converting lower currency notes into coins.
“As regards issuance of new naira notes, the CBN should also consider converting the country’s lower currency notes into coins to facilitate highly repetitive retail transactions and avoid printing pieces of low-value notes with a short lifespan.
“We also appeal to the CBN to adopt more innovative ways, establish appropriate policies and take actions that will drive down the inflation rate and strengthen the value of our naira,” he said.
Olawale-Cole, was represented by Mr Gabriel Idahosa, deputy president, LCCI.
The report gathered that the theme of the 2022 annual fair is, “Connecting Businesses, Creating Value.”
CBN says hoarding, counterfeiting, reasons for naira redesigning
Fuel subsidy was removed for Nigeria not to go bankrupt – Tinubu
President Bola Tinubu has said that fuel subsidy was removed to save the country from going bankrupt.
Speaking as one of the panelists at the ongoing World Economic Forum in Riyadh, Saudi Arabia on Sunday, April 28, Tinubu said he was convinced it was in the best interest of the people.
He said; “For Nigeria, we are immensely consistent with belief that the economic collaboration and inclusiveness are necessary to engender stability in the rest of the world.
“Concerning the question of the subsidy removal, there is no doubt that it was a necessary action for my country not to go bankrupt, to reset the economy and pathway to growth.
“It is going to be difficult, but the hallmark of leadership is taking difficult decisions at the time it ought to be taken decisively. That was necessary for the country.
“Yes, there will be blowback, there is expectation that the difficulty in it will be felt by greater number of the people, but once I believe it is their interest that is the focus of the government, it is easier to manage and explain the difficulties.
“Along the line, there is a parallel arrangement to really cushion the effect of the subsidy removal on the vulnerable population of the country. We share the pain across board, we cannot but include those who are vulnerable.
“Luckily, we have a very vibrant youthful population interested in discoveries by themselves and they are highly ready for technology, good education committed to growth.
“We are able to manage that and partition the economic drawback and the fallout of subsidy removal.”
The President who stated that fuel subsidy removal engendered accountability, transparency and physical discipline for the country, also talked about exchange rate unification.
According to President Tinubu, the management of the nation’s currency by the government was as well necessary to allow the Naira compete favourably with other world currencies.
He said; “The currency management was necessary equally to remove the artificial elements of value in our currency. Let our local currency find its level and compete with the rest of the world currency and remove arbitrage, corruption and opaqueness.
“That we did at the same time. That is two engine problem in a very template situation for the government, but we are able to manage that turbulence because we are prepared for inclusivity in governance and rapid communication with the public to really see what is necessary and what you must do.”
Fuel subsidy was removed for Nigeria not to go bankrupt – Tinubu
Naira appreciate, gains further by 1.8% against dollar
The Naira experienced a further appreciation at the official market, trading at N1,382.95 to a dollar on Tuesday.
Data from the official trading platform of the FMDQ revealed that the Naira strengthened by N25.09 or 1.78 per cent, compared to the previous day’s rate of N1,408 against the dollar.
Read Also: Pay Hajj Fare Based On Dollar Exchange Rate, NAHCON Advises Pilgrims
However, the total turnover increased to $245.58 million on Tuesday, up from $222.15 million recorded on Monday.
Meanwhile, at the Investor’s and Exporters’ (I&E) window, the Naira traded between N1,486 and N1,300 against the dollar.
The reports gathered that the Central Bank of Nigeria(CBN) had, earlier on Tuesday at its 294th Monetary Policy Committee (MPC), raised Monetary Policy Rate (MPR), by 200 basis points from 22.75 per cent to 24.75 per cent.
CBN governor Yemi Cardoso said that was meant to tackle the nation’s rising inflation.
Naira appreciate, gains further by 1.8% against dollar
Petroleum Ministry, NNPC Ltd., others brainstorm on oil, gas development
Retreat
The Ministry of Petroleum Resources as well as its agencies and parastatals are expected to brainstorm on emerging developments in the oil and gas industry, at a sectoral retreat scheduled to hold in Abuja.
Mrs Oluwakemi Ogunmakinwa, Deputy Director, Press and Public Relations, Ministry of Petroleum Resources, said in a statement on Sunday that the retreat would focus on the Ministerial Deliverables (2023-2027) for the oil and gas sector.
Read Also: Veteran Nollywood Actor, Amaechi Muonagor, Dies At 62
The retreat with the theme: “Building Synergy for Enhanced Development in the Oil and Gas Sector” would hold between March 26 and March 28.
Ogunmakinwa stated that the retreat would also fashion the way forward for the industry as earmarked by President Bola Tinubu.
“In the course of the retreat, heads of agencies under the ministry will be required to make presentations on the mandate, vision and mission of their respective organisations,” she stated.
According to Ogunmakinwa, the Minister of State Petroleum Resources (Oil), Sen. Heineken Lokpobiri and the Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo will be attending the retreat.
The Permanent Secretary, Ministry of Petroleum Resources, Amb. Nicholas Agbo Ella, Directors in the Ministry, as well as the Chief Executive Officers (CEOs) and Directors from the Agencies under the supervision of the Ministry would also be in attendance.
It would be recalled that President Bola Tinubu had the first year Ministerial Retreat with Ministers, Presidential Aides, Permanent Secretaries and top government functionaries from Nov. 1 to Nov. 3, 2023.
The retreat by the president was to chart a path for progress and prosperity of the nation, where he charged the participants to deliver on their mandates for the sake of Nigerians.
Petroleum Ministry, NNPC Ltd., others brainstorm on oil, gas development
-
Education10 months agoMathematics Teacher Reportedly Stung By Bee While Preparing Students For Exam
-
Health3 weeks agoOnly 58,000 doctors renewed licence out of 130,000 registered doctors – MDCN
-
News1 year ago3 escape death in Ore-Sagamu expressway accident
-
Politics3 weeks agoAPC IN A FIX AS GOVERNORSHIP ASPIRANTS REJECT THE ONDO STATE PRIMARY ELECTION RESULTS
-
Crime3 weeks agoPolice arrest cultists who killed rival in his daughter’s presence
-
Sports3 weeks agoAsaba to host Wheelchair Basketball Atlantic Conference League
-
Education3 weeks agoUTME: JAMB to refund registration fees to deserving visually-impaired candidates
-
National3 months agoResidents gather to scoop engine oil as tanker falls in Ojuelegba
