The Central Bank of Nigeria (CBN) has on Wednesday revealed that supplied $2.58bn to Bureau de Change in Lagos for the printing of banknotes in 2019.
The apex bank disclosed this in its Currency Operation Department Annual Report for 2019, where it said it deployed $3.95bn to Bureaux De Change (BDCs) and pilgrim operations, and payment of estacode and personal travel allowances to Ministries, Departments and Agencies (MDAs) during the period.
The report noted, “The total cost incurred on printing of banknotes amounted to N75.5billion in 2019, compared with N64bn in 2018, indicating an increase of N11.5 billion or 17.93 per cent.”
“A total of $3.95 billion was procured in 2019, out of which $2.58 billion was supplied to Lagos branch and $1.38 to Abuja branch, for distribution to other branches,” it revealed.
According to CBN it discovered N365.5m as shortages during the processing of deposits from 21 Deposit Money Banks (DMBs) and Bankers Warehouse Plc during the period.
This, it continued, was used to fund BDCs and Pilgrim operations, as well as, payment of estacode and personal travel allowances to Ministries, Departments and Agencies (MDAs).
The report further highlighted that last year, a total of N365.5m was discovered as shortages during processing of deposits from 21 DMBs and Bankers Warehouse PLC. “Of this amount, N273.3 million or 74.77 per cent were from four DMBs.”
“The volume of shortages in 2019 decreased significantly by N71m (16.27 per cent), from N436.5m in 2018. The downward trend was due to the abolition of the time-expired policy of the Bank and upward review of penalty charges from 50 per cent and 200 per cent to 100 per cent and 400 per cent for penalty charges on shortages and counterfeits, respectively, in deposits by DMBs deposits. This measure encouraged the DMBs to strengthen their internal control mechanism.”
It read in part, “In 2019, a total of 260,651 boxes of banknotes of different denomination, valued at N1.53 billion were processed, compared with 266,578 boxes of banknotes valued at N1.56 billion in 2018. This represented a decrease of 5,927 boxes or 2.22 per cent or N28.2 million.
“At end of December 2019, a total of 157,217 million pieces or 157,217 boxes valued at N814.59 million was disposed, compared with 181,054 million pieces or 181,054 boxes valued at N915.08 million disposed in 2018. The boxes and value of disposed notes in 2019 decreased by 23,837 boxes and N100.5 million, respectively, compared with 181,062 boxes and N915.08 million, disposed in 2018.”
Accordingly, the report stated that a total of 865,775 pieces of various denominations of mutilated banknotes valued at N45.99m was audited, disposed and replaced last year, compared with 59,939 pieces valued at N39.24m in 2018.
“This indicated 1,344.43 per cent and 17.20 per cent increase, in volume and value terms, respectively,” it noted.Follow us on social media