Banks Deliberately Flood Market with Dirty Naira Notes—CBN

By Dipo Olowookere

Commercial banks operating in the country have been accused of deliberately flooding the market with dirty Naira notes, which have become an eyesore to citizens.

This is mainly seen in the N100 notes.

At several Automated Teller Machines (ATM) spread across the country, customers are given mutilated notes, a thing that has become a source of worry to many.

Acting Director of Corporate Communications at the Central Bank of Nigeria (CBN), Mr Isaac Okoroafor, while commenting on the issue, also accused the banks of hoarding new notes.

He said commercial banks in the country receive enough new notes and wondered why they are not being circulated.

The CBN spokesman absolved the apex bank from the debacle, pushing it to the commercial banks. He said the banks were supposed to employ people to do the sorting for them, but they refused in order to avoid the cost of employing personnel for this.

“Instead of bringing them to us sorted, the banks bring them unsorted. Then we started charging them N12,000 per box. A box of N1000 notes contains N10 million worth. So, a box of N500 notes is N5 million in that order. So, in a bid to avoid cost, they preferred to re-circulate old and mutilated notes,” Mr Okoroafor said.

On why so many mutilated Naira notes are still in circulation, CBN image maker claimed that people handle these notes badly, making them unable to get to their lifespan anymore.

He said for the lower denomination notes, they have a higher velocity of circulation.

“What that means is that you use it more often and as you use it in exchange, it gets worn out and gets torn more frequently. So, that also creates another problem.”