How CBN spent N113.56b to print naira in two years

The Central Bank of Nigeria (CBN) spent N113.56 billion to print naira in two years, a report has said.

The report from the Currency Operations Department of the CBN said the regulator spent N64.04 billion on printing banknotes in 2018 and N49.52 billion in the corresponding period of 2017 bringing the total to N113.56 billion in two years.

Also, the total amount of currency-in-circulation (CIC) grew by 0.8 per cent to N2.330 trillion as at the end of December 2018. It stated that the growth in CIC reflected the high dominance of cash in the economy and increase in economic activities.

A breakdown of the CIC indicated that in terms of volume and value, the proportion of higher denomination banknotes (N100, N200, N500 and N1000) in total rose from 41.9 to 44.3 per cent and 96.9 to 97.6 per cent, respectively. The lower denomination currency notes continued to be preponderant in terms of volume, constituting 55.7 per cent of the total. In value terms, it constituted 2.4 per cent of the total banknotes.

According to the report, the CBN approved an indent of 3,351.34 million pieces of banknotes of various denominations in 2018, to meet the currency needs of the economy. This was 25.3 per cent higher than the level in the preceding year. The Nigerian Security Printing and Minting (NSPM) Plc was awarded the contract for the production of the entire indent. It stated that the NSPM delivered 2,653.31 million pieces or 79.2 percent of the total, with an outstanding balance of 698.03 as at the end of December, 2018.

In addition, the company, under a domestication arrangement, delivered 22.89 million pieces of Nigeria’s N100 commemorative centenary banknote, awarded in 2014 to Crane Currency Sweden. As at December 31st 2018, a cumulative total of 992.50 million pieces or 99.3 percent had been delivered.

Furthermore, it stated that the management of the apex bank approved the procurement of 2.42 million pieces of N500 denomination Banknotes produced by NSPM in 2012 at a negotiated 50 per cent discount price of N15.499 billion.

“The Department expended the sum of N64,040.78 million on printing of banknotes in 2018, compared with N49,524.96 million in the corresponding period of 2017, indicating an increase of N14,515.82 million.