Recession:CBN Suspends Printing Of Smaller Denominations

By Ikenga Chronicles December 30, 2016
The suspension of the printing of small currency notes by the Central Bank of Nigeria (CBN) due to economic recession has reportedly led to scarcity of smaller denominations of naira in the economy‎.
The News Agency of Nigeria (NAN), citing sources at the CBN, reports that for a year now, the apex bank did not award contract for the printing of notes such as N5, N10, N20 and N50 usually done abroad.
The source disclosed that the only notes printed by the Nigeria Security Printing and Minting (NSPM) Plc in the last one year includes, N200, N500 and N1,000 due to the high cost of printing banknotes.
“The cost of printing N50 is almost the same as N1,000 but printing small denominations costs more than the value and with the present economic situation, it makes sense to print higher notes, which can be done locally by NSPM” a source said.
Confirming the scarcity of the small naira denominations in the country, a worker at the First Bank Plc said  “We usually request for cash from the CBN through our Cash Management Centre, but recently, we have not been able to get mints of N100 and below. We had N50 at one point but it wasn’t in the quantity we are used to getting. “
“We have been telling our customers who call to request for mints that the smallest note they can get is N200” the bank employee, who pleaded anonymity said.
The report was however denied by the apex bank who claimed that the scarcity was only in the festive period because the bank did not provide mints during the season rather than the whole 2015 as reported.
The CBN Acting Director, Corporate Communications, Mr. Isaac Okorafor, said  “You see, people are fond of abusing these denominations by spraying them to be stepped on during weddings and other ceremonies.”
“The abuse is even worse during the festive season, so we decided to make scarce the denominations. But it’s not that we have not been printing them. Yes, we haven’t printed abroad but we also print locally, which we have been doing”
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