Expect More Lower Denominations– CBN Hints Nigerians

By Ikenga Chronicles September 19, 2018

Expect More Lower Denominations– CBN Hints Nigerians

The Central Bank of Nigeria(CBN) has hinted Nigerians that there will be more circulation of lower denominations in the economy.

The CBN stated that it has approved the disbursement of N200, N100, N50, N20, N10 and N5 denominations to traders at the Tejuosho Ultra-modern Market, in Lagos for a start.

This is in continuation of a series of direct disbursements to marketers, merchants, shopping malls, supermarkets, tollgates, among others, with a searchlight on the recipients to ensure compliance to rules.

The Director, Currency Operations Department, Mrs. Priscilla Eleje, at the weekend in Lagos, during the sensitisation programme at the market, said the CBN will make available N5000 worth of the lower denominations weekly to traders at the market through their bank accounts.

She said that the progressive disbursement was to guard against possible abuse or diversion and curtail the scarcity of the lower naira denominations due to hoarding and sale by unscrupulous people.

“In recent time, the bank has observed the inadequate circulation of the lower denomination banknotes and difficulties encountered by economic agents despite huge volume of banknotes injected into circulation on yearly basis.

“Any beneficiary found to violate the procedure would be delisted”, she warned.

She added that CBN “recognizes the important role markets play in economic growth, hence the need to ensure accessibility to lower denominations to carry out legitimate economic transactions.”

Explaining the framework for the disbursement of these lower denominations, she reiterated that this would be made through commercial banks at no extra cost, while the beneficiaries should ensure that their accounts are funded before any withdrawal would be made.

“Therefore, market associations are not expected to add any cost to their members. In order to guard against possible abuse or diversion of these banknotes, the bank has developed a monitoring framework to ensure the judicious utilisation of the funds disbursed.

“The exercise consists of on the spot-checks to the premises of the beneficiaries after the receipt of disbursement as well as mystery shopper approach to shops, markets and toll gates and any beneficiary found to violate the procedure would be delisted.”