CBN Stops Open-Air Burning of Mutilated Naira Notes

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) will be opting for recycling of mutilated naira notes rather than open-air burning in an environmentally friendly approach to stop the circulation in partnership with private firms in the country.

It was disclosed by the bank in a notice titled, Request for Proposal for the Recycling of Paper Banknote Wastes that it destroys about 100 tonnes of bad naira notes every week at the 12 disposal centres across the country but recognised that open air burning impacted negatively on the environment, thereby causing pollution and health hazards.

According to the notice, “The destruction of unfit banknotes in Nigeria is carried out by the Central Bank of Nigeria (CBN) under strict security and environmentally sustainable manner. Section 18(d) of the CBN Act 2007 authorised the bank to arrange for the destruction of currency notes and coins withdrawn from circulation under the provision of section 20(3) of the said Act or otherwise found by the Bank to be unfit for use.

“The banknotes disposal operation is presently carried out in 12 disposal centres across the country weekly where about 100 tonnes of paper banknote wastes are generated. These wastes are destroyed through open-air burning in sites owned by the bank or rented, usually from the respective State Governments.

“Paper banknote wastes disposal by open-air burning impacts negatively on the environment thereby causing pollution and health hazards. The Central Bank of Nigeria in pursuance of its sustainability initiatives has reviewed the current method of banknote wastes disposal through open-air burning with the aim of adopting a more environmentally sustainable method thereby reducing its carbon footprint.”

Due to this, the bank is seeking proposal that will bring accredited recycling companies interested in utilizing paper banknote wastes in its recycling process.

“The purpose of this Request for Proposal (RFP) is to solicit competitive proposals from reputable companies that can recycle CBN paper banknote wastes into useable products that can be beneficial to the nation while adhering to Health Safety and Environment (HSE) standards,” it noted in the statement.