How CBN spent ₦3.9bn to destroy ₦4.13trn worth of dirty naira notes -Report

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How CBN spent ₦3.9bn to destroy ₦4.13trn worth of dirty naira notes -Report

How the CBN spent N3.9 billion to destroy N4.13 trillion dirty naira notes 

The Central Bank of Nigeria (CBN) has revealed that in the last six years, it has spent N3.88 billion to dispose of dirty currency worth N4.13 trillion.

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The Central Bank of Nigeria (CBN) revealed this in its recently issued Annual Report 2020, which was written by the CBN’s Currency Operations Department.

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According to the report, the money disposal is part of the organization’s statutory activities to ensure that only clean Naira notes remain in circulation.

“The Bank continued its banknote disposal operations in 2020 to ensure that only clean banknotes were circulated.”

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It installed eleven (11) Banknote Destruction Systems (BDS) and three (3) Money Disintegrating Systems (CDS) for currency disposal activities during the period under review, according to the Central Bank of Nigeria (CBN).

Bad notes

The report breakdown shows in 2016, CBN disposed of 358,877 boxes of unfit Naira notes worth N829.9 billion.

In 2017, the apex bank disposed of 257,501 boxes of bad naira notes worth N977.2 billion.

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In 2018 and 2019, a total of 181,217, and 157,217 boxes were destroyed worth N814.5 billion and N814.4 billion respectively.

Last year, the report showed that a total of 151,427 boxes valued at N698.5 billion was disposed.

Cost of currency disposal

A further breakdown from the report showed that disposing of the bad currency wasn’t cheap.

In 2016, CBN says it spent N1.43 million and N594.62 million in 2017.

In 2018, disposing bad notes cost N662.21 million before dropping again in 2019 to 647.82 million

In 2020, the sum of N538.59 million was incurred on currency disposal activities.

Mutilated notes disposed and replaced

CBN also said that a total of 79,993 pieces of mutilated banknotes of various denominations valued at N52.82 million was audited, disposed and replaced in 2020, compared with 865,775 pieces valued at N45.99 million in 2019.

This represented a 90.76 percent and 14.85 percent decrease, in volume and value terms, respectively.

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