Find the latest bookmaker offers available across all uk gambling sites Read the reviews and compare sites to quickly discover the perfect account for you.

Nigerians agonise over dirty, shortage of smaller naira notes

Quantity of dirty and unfit naira notes in circulation and scarcity of small denominations of N10, N20, N50 and N100 notes, is becoming a major concern to Nigerians, especially those engaged in commercial transactions.

These days, even over-the-counter and Automated Teller Machines (ATMs) transactions are disbursing dirty and unfit notes, just as commercial banks and the Central Bank of Nigeria (CBN) trade blames over who is responsible, directly or indirectly, for the situation.

More worrisome to banks’ customers is that ATMs have not only become outlets for these dirty and sometimes, unfit notes, but are also deliberately mixing them with few new notes and once dispensed, even the same bank do not accept them back when presented in the banking hall.It is sad that Nigeria is infested with mutilated, dirty, worn-out and torn naira notes. It is an embarrassing situation to citizens and even visitors from other countries.

It is common to find naira notes strewn with oil, paint, pen ink or cello-tape. Almost all the denominations of the naira currently in circulation, especially the small ones, are mutilated.
A nation’s currency, like the flag, is its symbol of identity; thus, in most climes, currencies are well cherished and kept tidy.
According to medical experts, mutilated currency notes in circulation could harbour pathogenic microorganisms that could be injurious to human health.
It has been observed that all the banks are guilty of dispensing bad naira notes, both at the counters and even at their Automated Teller Machines (ATMs). Just a few ATMs dispense new notes across the country.
It has also been observed that even when customers approach banks to exchange bad naira notes for new or clean notes, they won’t oblige the requests, usually on the pretext that new notes are not available; yet they are sold in the streets nationwide.
Section 21(4) of the Central Bank of Nigeria (CBN) Act, 2007 makes it a punishable offence for any person to hawk, sell or trade in naira notes or coins.
It has been alleged that naira vendors do their businesses in active connivance with commercial banks. The banks refuse genuine requests by customers for new naira notes, only to sell them illicitly to street vendors for a premium.
Some banks also refuse to accept torn naira notes when customers want to deposit them. This is in flagrant disregard to CBN rules, where banks are mandated to receive all currencies, whether they are mutilated or not. For the worn-out and torn notes, the CBN collects, destroys and replaces them to balance up the volume of money in circulation.
Even when the banks receive the mutilated naira notes, they re-circulate it instead of taking it to the CBN for destruction and replacement. It is said that they do this to avoid additional expenses incurred from sorting out the mutilated notes or paying a 5 per cent fine to the CBN for unsorted notes. The CBN accepts sorted dirty and torn notes from the banks free of charge.
But commercial banks accused the CBN of undersupplying new naira notes, just as they decried charges by the apex bank. They said the CBN should not charge any fine on the torn and dirty notes, sorted or unsorted.
However, CBN’s acting director of Corporate Communications, Isaac Okoroafor, said the apex bank had been printing lower dominations of naira notes. He explained that “a combination of currency abuse and the fact that N100 notes have high velocity of circulation contribute to the fast wear and tear of lower notes. What that means is that you use it more often, and as you use it in exchange, it gets worn out and torn more frequently. That also creates another problem.”
On why the unsorted notes attract charges he said, “Instead of bringing them to us sorted, the banks bring them unsorted. Then we started charging them N12,000 per box. A box of N1000 notes contains N10 million worth. A box of N500 notes is N5 million, in that order. So, in a bid to avoid cost, they prefer to re-circulate old and mutilated notes,” Mr Okoroafor had said.
The House of Representatives had earlier directed the CBN to stop imposing charges on commercial banks before receiving mutilated and dirty notes. The House noted that the surcharge was one of the major reasons why the banks were reluctant to withdraw such notes from circulation or accept them from customers.
As plausible as that may sound, experts said it won’t end the challenge of dirty naira notes in the country. They said transactions with physical cash should rather be de-emphasised, adding that electronic payment channels presents the best option, and that Nigeria must fully key into the e-payment systems so that less cash would be in circulation.
“In most countries, especially the advanced ones, e-payment channels like internet banking, NEFT transfers etc, and mobile payments are predominantly used as modes of payment. This removes pressure on fiscal cash,”
He noted that Nigerian banks and the CBN must invest more in deepening e-payment and mobile payment platforms in Nigeria. He also commended the CBN for the cashless programme it launched some years back.
Mr. Benedict Aondover, a public affairs analyst, noted that since cash could not be completely eliminated from the system, Nigerians should learn to treat the naira with more dignity by keeping it properly in a wallet. He frowned at the culture of squeezing the naira, especially by traders and bus attendants. He also tasked the CBN and the National Orientation Agency to step up awareness campaigns nationwide on the proper handling of the naira.
Also commenting on mutilated naira notes, Mr. Rislanudeen Muhammad, a former acting managing director of the Unity Bank of Nigeria, said dirty notes in circulation “often leads to frequent production of new notes, with an attendant cost on the CBN.”

About Younews Ng

Check Also

Senator urges probe of Plateau monarch assassination

Senator Istifanus Gyang (PDP-Plateau) has described the assassination of a traditional ruler in Barkin Ladi ...

Leave a Reply

Your email address will not be published. Required fields are marked *