Posted by By Chijama Ogbu on
The Central Bank of Nigeria plans to change some of the country‘s currency notes by December, as part of its currency-restructuring programme.....
The Central Bank of Nigeria plans to change some of the country‘s currency notes by December, as part of its currency-restructuring programme.
Under the arrangement, the design and colouration of N10, N20 and N50 notes will be altered fundamentally to make them cost-reflective.
Our correspondent learnt that the CBN had contracted out the production of the notes to the Nigeria Security Printing and Minting Company. A December deadline was said to have been given the minting company.
The CBN Governor, Prof. Charles Soludo, had in April disclosed that by December 31, the NSPMC would stop importing finished currencies, and that plastic coins would be introduced to replace some notes that are currently in existence.
It was learnt that the NSPMC had already finished the designs of the new notes.
The primary aim of the CBN‘s restructuring, our correspondent learnt, was to reduce cost of producing each note.
A CBN source explained that it currently costs N8 to produce a N5 bill, and that the average lifespan of each bill is about eight months. Thereafter, the bill is usually recalled for destruction.
The source added, "We want to bring the cost of printing of N5 down to N5 or lower…We are going to achieve an overall savings on the currency of 40 per cent on the long term.
"There are going to be new features in the new currency. We are going to varnish the paper so that it is going to last for a longer period."
Attempts by our correspondent to speak on Sunday with the CBN spokesman, Mr. Festus Odoko, were abortive.
But the Managing Director/ Chief Executive of NSPMC, Mr. Ehi‘ Emmanuel Okoyomon, earlier confirmed that his company had received an order for the production of new bills.
He said, "I am sure you are aware there is a currency restructuring exercise that the CBN has been talking about, where they are going to bring a new series of naira notes hopefully before the end of the year.
"We too have got that order to produce some of the currencies. And we are making preparations for the production of a new series of low-denomination notes like N10, N20 and N50."
He confirmed that the minting firm would be introducing varnish to the colour of the new notes to increase its durability.
Okoyomon added that the NSPMC had embarked on massive facilities upgrade that would place it in a good stead to meet the CBN order.
The last time the apex bank made a comprehensive restructuring of currency notes was in 1984 when it changed the colours of N10 and N20 notes.