The Central Bank of Nigeria (CBN) says it
resolved to discontinue printing the naira in
polymer notes so as to take away the monopoly
of printing the currency from the Australian
firm - Securency International Pty Limited.
Tunde Lemo, the apex bank’s Deputy
Governor, Operations, said that as a result of
the monopoly, regulator was always forced to
pay whatever amount the firm charges; adding
that there are also a lot of “environmental
issues” surrounding the polymer notes.
Under the proposed new currency structure,
expected to take effect in January 2013, the
existing notes of N50, N100, N200, N500 and N1,
000 are to be redesigned with added security
features. The N5, N10, and N20 notes will be
replaced as coins, while a N5000 note will be
introduced.
“Securency is the only producer of polymer
currency in the world and so the CBN has been
resorting to single sorting for banknote,” said
Lemo. “This, we think, is not good for the
country. Even though the plan is to coin N5,
N10 and N20, the N50 note will be converted to
paper currency. However, if Nigerians show
preference for retaining the N5, N10 and N20 in
banknotes instead of coins, it shall no longer
be in polymer.
The destruction of banknotes made of polymer
has proved to be a challenge in Nigeria from an
environmental perspective. Briquetting
(destruction of unfit banknotes) of polymer is
not always easy because it is made of polythene
and emits substances that are not
environmentally friendly.”
Lemo also stated that another reason to do
away with polymer notes was as a result of the
scandal handing on Securency’s neck. This to
him cast doubt on the integrity of the
Australian firm.
Ugochukwu Okoroafor, bank’s spokesperson,
had said last week that unlike in the past
where printing firms held the patent and right
to produce the naira, the currency
restructuring would make the CBN hold the
patent of the new set of currencies that would
emerge from the process.
“We need to take back all our patents and
right,” he said. “Right now, some of the patents
and rights do not belong to Nigeria or the CBN.
We had a rude shock when that became an
issue when we wanted to print a particular set
of notes. So we are using this exercise to take
back that right. If it belongs to Nigeria, nobody
will hold us to ransom.”
According to Okoroafor, the proposed
introduction of a higher denomination of
banknote would enable the apex bank save
about N7 billion out of its annual cost of
printing currency. “Every currency gets
reviewed once in a while,” he said. “Right now,
the United Kingdom is reviewing its currency.
So currency review is something that we must
do. As a monetary authority, it is our
responsibility enshrined in the CBN Act 2007.”
www.dailytimes.com.ng/article/cbn-explains-discard-polymer-notes

Confused leaders confusing the already confused citizens with confusing policy.

Tunde Lemo is a hypocrite and sycophant.. I remember him singing praises for these same polymer notes when Soludo was about to launch them and now he is singing another tune to impress SLS.. it clear that Lemo lacks honor