- The Central Bank of Nigeria said it sustained banknotes disposal operations in 2020 to ensure the circulation of clean banknotes
- The naira notes which are unfit and disposed of range from N1000 to N5 note with N500 accounting for 38.2%
- The dirty notes were put into 151,427 boxes and disposed of with the sum of N538.59m CBN reveals
The Central Bank of Nigeria said it disposed 1.51 billion pieces of banknotes worth N698.48 billion in 2020
This was disclosed in the recently released Annual Report 2020 as compiled by the CBN’s Currency Operations Department.
In Nigeria, the Central Bank of Nigeria (CBN) destroys unfit banknotes on a regular basis under strict security and with the authorization of Section 18(d) of the CBN Act 2007, which mandates the destruction of currency notes and coins withdrawn from circulation under the provisions of Section 20(3) of the said Act or otherwise deemed unfit for use by the Bank.
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According to the CBN report, the bank sustained banknotes disposal operations in 2020 to ensure the circulation of clean ones.
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"At the end of December 2020, a total of 1.51 billion pieces (151,427 boxes) worth N698,593.29 million were disposed of, compared to 1.57 billion pieces (157,217 boxes) worth N814,437.60 million in 2019.
The number of boxes and the value of inappropriate notes disposed of in 2020 fell by 5,790 boxes and N1,115.84 million, respectively, from 157,217 boxes and N814,437.10 million in 2019. The drop was ascribed to a halt in disposal activities owing to COVID19 regulations."
In furtherance of this objective, CBN revealed it deployed eleven (11) Banknote Destruction Systems (BDS) and three (3) Currency Disintegrating Systems (CDS) for currency disposal activities in the period under review.
Cost of currency disposal
The Central Bank of Nigeria announces it spent N58.61billion to print 2.518 billion Naira notes in 2020
The CBN also stated that the sum of N538.59 million was incurred on currency disposal activities in 2020, compared with N647.82 million in 2019.
This was N109.23 million or 16.86 percent lower than the cost in 2019.
CBN spends N58.61billion to print 2.518 billion Naira notes
In a related story Legit.ng reported that the Central Bank of Nigeria has revealed it spent N58.61 billion printing Naira notes for circulation in the country.
According to CBN 2,51 billion pieces of banknotes of various denominations was printed to satisfy the currency needs of the economy
The amount spent in 2020 for printing is a significant drop when compared with what CBN spent in 2019, 2018.