The Deputy Governor, Financial System Stability, Central Bank of Nigeria, Aisha Ahmad, has said the amount spent on maintaining the naira has increased by N10bn annually.

Ahmad, who revealed this on Friday during her appearance before the House of Representatives to defend CBN’s new cash withdrawal limits policy, attributed over 90 per cent of currency management costs to banknote production.

Findings by Sunday PUNCH indicate that the apex bank spends about N150bn on the management of the naira annually, which has now increased by N10bn, as declared by Ahmad in her presentation, obtained by one of our correspondents on Friday.

A former CBN deputy governor, Dr Kingsley Moghalu, had earlier disclosed that the apex bank spends about N150bn annually to maintain the naira.

He stated that the amount was used to produce, store, transport, protect and destroy the naira notes every year.

Going by Ahmad’s diclosure of N10bn increase, the apex bank has spent N800bn between 2017 and 2021 on the production, storage, transportation and destruction of the currency.

In her presentation, Ahmad said currency management was a key function of the apex bank as enshrined in Section 2(b) of the CBN Act, 2007, noting that the integrity of the currency and efficient supply of banknotes were indicators of a performing central bank, especially in predominantly cash-based economies such as Nigeria.


The deputy governor highlighted the various challenges facing currency management, which had affected the ability of the CBN to efficiently carry out its mandate of issuing legal tenders.

She stated, “The challenges have continued to grow in scale, with the attendant consequences on the bank’s policy effectiveness, if left unaddressed. These challenges include wholesale hoarding of naira banknotes by members of the public.

“An observation supported by statistics shows that cash outside banks consists of over 80 per cent of the currency in circulation; worsening shortage of fit banknotes in circulation. This portends negative public perception of the bank and increasing threat to financial system stability.

“High and increasing cost borne by the bank: A review of the cost of currency management from 2017 to 2021 indicated an average increase of over N10bn per annum and over 90 per cent of currency management costs are attributed to banknote production. This affects the CBN and other participants in Nigeria’s currency management sector (banknote production, storage processing, distribution activities and banknote destruction).”

Ahmad also noted that the high risk of counterfeiting evidenced by reports from security agencies on the rise of counterfeit-related incidents in some states, including the Federal Capital Territory, was another challenge.

This, she added, had adverse implications for businesses and the economy at large.

Source: https://punchng.com/CBN-spends-N800bn-on-currency-production-destruction

Noted

adenigga:


The Deputy Governor, Financial System Stability, Central Bank of Nigeria, Aisha Ahmad, has said the amount spent on maintaining the naira has increased by N10bn annually.

Ahmad, who revealed this on Friday during her appearance before the House of Representatives to defend CBN’s new cash withdrawal limits policy, attributed over 90 per cent of currency management costs to banknote production.

Findings by Sunday PUNCH indicate that the apex bank spends about N150bn on the management of the naira annually, which has now increased by N10bn, as declared by Ahmad in her presentation, obtained by one of our correspondents on Friday.

A former CBN deputy governor, Dr Kingsley Moghalu, had earlier disclosed that the apex bank spends about N150bn annually to maintain the naira.

He stated that the amount was used to produce, store, transport, protect and destroy the naira notes every year.

Going by Ahmad’s diclosure of N10bn increase, the apex bank has spent N800bn between 2017 and 2021 on the production, storage, transportation and destruction of the currency.

In her presentation, Ahmad said currency management was a key function of the apex bank as enshrined in Section 2(b) of the CBN Act, 2007, noting that the integrity of the currency and efficient supply of banknotes were indicators of a performing central bank, especially in predominantly cash-based economies such as Nigeria.


The deputy governor highlighted the various challenges facing currency management, which had affected the ability of the CBN to efficiently carry out its mandate of issuing legal tenders.

She stated, “The challenges have continued to grow in scale, with the attendant consequences on the bank’s policy effectiveness, if left unaddressed. These challenges include wholesale hoarding of naira banknotes by members of the public.

“An observation supported by statistics shows that cash outside banks consists of over 80 per cent of the currency in circulation; worsening shortage of fit banknotes in circulation. This portends negative public perception of the bank and increasing threat to financial system stability.

“High and increasing cost borne by the bank: A review of the cost of currency management from 2017 to 2021 indicated an average increase of over N10bn per annum and over 90 per cent of currency management costs are attributed to banknote production. This affects the CBN and other participants in Nigeria’s currency management sector (banknote production, storage processing, distribution activities and banknote destruction).”

Ahmad also noted that the high risk of counterfeiting evidenced by reports from security agencies on the rise of counterfeit-related incidents in some states, including the Federal Capital Territory, was another challenge.

This, she added, had adverse implications for businesses and the economy at large.

Source: https://punchng.com/CBN-spends-N800bn-on-currency-production-destruction

Well, still within limit even tho we know there will still be corruption.

In USA for example, the fed reserve board spend like $1billion annually on printing new currency alone.

Now this Nigeria figure involve printing new, maintaining pre-existing, destroying old note, and etc.

More cluelessness.

Wastes

800 Billion Naira to print new Naira notes and other logistics?

Emefiele with the money

E bad e bad, 5 Billion Don enter his pocket..

LegendHero:
Well, still within limit even tho we know there will still be corruption.

In USA for example, the fed reserve board spend like $1billion annually on printing new currency alone.

Now this Nigeria figure involve printing new, maintaining pre-existing, destroying old note, and etc.

The Dollar is the most popular currency in the world, is there any country in this world where you won't find dollars in millions? Can same be said about naira?

If there are 1 billion pieces of dollars worldwide, then naira should be around 50k in ratio.

The US spend $100 to destroy $1.

Only God knows how much naira will be destroyed with N800b. Probably 1m only.

Shey U dey whine us...

We are looking for money to pay foreign debt, funds projects and for budgets and they are spending for production and destruction of new and old notes...

How much is our foreign debt again

Merry Christmas to all Nairalanders.
May this season favour us all.
Make CBN dey play well well.

Ok. Thank God it didn't enter trillion this time

That means if they had brought a totally new design they would have quoted 10 TRILLION

CBN just dey play

Nigeria is on a long ride and only God can liberate this nation now.....God in his infinite Mercy has given us peter obi but some satanic few are fighting tooth and nail against peter obi....... such people fall into a handful of categories such as,
1) Party members who don't care If the country dies as long as their party remain in power.
2) Political jobbers and lobbiers who feed from the crumbs that falls of the corrupt political elites.
3) Die hard tribalists who would rather the country sinks with their tribes man in power than be saved by a man from another tribe.
4) Ignorant citizens who would keep defending their oppressors who have morgaged the futures of their children.
If you fall into any of this categories of people then this my comment is for you..... Become obedient today for it is not too late to open your eyes and stand up to be counted..... Nigeria can be great again.

Ok

When APC collected N100m from Emefiele for the presidential nomination form only and other logistics and support, didn't they know that the money will somehow be replaced in multiple folds from where it came from?

By the time APC is done with Nigerians, una go dey smell like burnt roasted corn �.

This is preposterous and mismanagement of public funds. Looking at the indices of economic development in the country, we are way far behind in comparison with developing nations and even our neighbouring countries.

You can't bite more than you can chew. There is a hunger out there and these people are just fixing a random figure after much embezzlement. God will help us.





Kindly check my signature below

How much did they spend on the awareness of the new notes.

Okay

No Problem.

Youngzedd:
By the time APC is done with Nigerians, una go dey smell like burnt roasted corn �.

Shuuuu, go and read before talking

O

Sensational headline as usual, I thought #800 Billion was spent on the new Naira notes or annually before I open the news. Our media houses needs to do better. Btw, what are they maintaining with #150 bln annually

Only in Nigeria

Main girlfriends go wash plates tire today especially the ones visiting for the first time.


Emiefele is already a chicken for Nigeria, if not killed FOR Xmas, he can't escape Easter

I know right

Ok

......and as I've not eating anything this morning, may the Lord punish all of them in Jesus name. As all the plans of the evil one is to continue to milk this country dry. For Emefiele,...the hardship you are putting this country through now, may the Lord serves you & your household folds in Jesus name.

true true, owo la ma nfi pori owo( you use money to get money).

LegendHero:
Well, still within limit even tho we know there will still be corruption.

In USA for example, the fed reserve board spend like $1billion annually on printing new currency alone.

Now this Nigeria figure involve printing new, maintaining pre-existing, destroying old note, and etc.

I keep wondering why USA is always used to compare Nigeria. Are the on d same level bro??