CBN trims down cost of printing Naira notes

The Central Bank of Nigeria (CBN) has revealed that it spent N58.6 billion to print 2.52 billion Naira notes valued at N1.1 trillion in 2020 indicating a significant decline this period when compared with N75.5 billion and N64.04 billion spent for the same purpose in 2018 and 2019 respectively.

This was disclosed in its Annual Currency Operations report for 2020 where the apex bank also said it utilized $1.83 billion within the same year to fund Bureaux De Changes (BDCs) and Ministries, Agencies and Departments (MDAs) operations.

The report indicated that CBN, “approved an indent of 2,518.68 million pieces of banknotes of various denominations in 2020 to satisfy the currency needs of the economy, compared with 3,830.94 million in the preceding year.”

The current management of the CBN under the leadership of Mr. Godwin Emefiele, has been driving the cashless policy with a view to cutting the cost of printing bank notes and cash management, in the country. The new e-Naira was also initiated in line with the policy.

According to the report, “the total cost incurred on printing of banknotes in 2020 amounted to N58,618.50 million, compared with N75,523.50 million in 2019, indicating a decrease of ¦ 16,905.00 million or 28.84 per cent.”

CBN indicated in the report that the notes were printed in-country by the Nigerian Security Printing and Minting Plc (NSPM Plc).

“The NSPM Plc was awarded the contract for the production of the entire indent. It put the total stock of currency (issuable & non-issuable) in the vaults of the bank at the end of December 2020 at 2.747 billion pieces, compared with 2.641 billion pieces in 2019, indicating an increase of 105.73 million pieces or 4.00 per cent.”

The report also indicated that a total of $1.830 billion was procured over the course of 2020.

According to the report, “This value represents a decrease of USD2,120.00 million or 53.67 per cent relative to the USD3,950.00 million procured in 2019.

In 2020, a total of 173,585 boxes of banknotes valued at N980. 758 billion was processed, compared with 260,651 boxes of banknotes valued at N1. 533 trillion in 2019.

This represents a decrease of 33.40 per cent in the number of boxes or N552. 971 billion in value of processed banknotes. (Vanguard)