The Central Bank of Nigeria, CBN, has disclosed that it spent N75 billion to print banknotes in 2019. The apex bank disclosed these in its Currency Operation Department Annual Report for 2019.
The amount represents N11.5 billion or 18 percent increase when compared to N64 billion spent in 2018. The CBN also state that it deployed $3.95 billion to Bureau De Change (BDCs) and pilgrim operations, as well as, payment of estacode and personal travel allowances to Ministries, Departments and Agencies (MDAs) during the period. Meanwhile, the CBN said it discovered N365.5 million as shortages during the processing of deposits from twenty-one (21) Deposit Money Banks (DMBs) and Bankers Warehouse Plc during the period. The regulator stated: “The total cost incurred on printing of banknotes amounted to N75.5 billion in 2019, compared with 64 billion in 2018, indicating an increase of ¦ 11.5 billion or 17.93 percent.
“A total of $3.95 billion was procured in 2019, out of which $2.58 billion was supplied to Lagos branch and $1.38 to Abuja branch, for distribution to other branches. This was used to fund BDCs and Pilgrim operations, as well as, payment of estacode and personal travel allowances to Ministries, Departments and Agencies (MDAs).” According to the report, “In 2019, a total of N365.5 million was discovered as shortages during processing of deposits from twenty-one (21) DMBs and Bankers Warehouse PLC. Of this amount, ¦ 273.3 million or 74.77 percent were from four (4) DMBs. “The volume of shortages in 2019 decreased significantly by 71 million (16.27 percent), from ¦ 436.5 million in 2018. The downward trend was due to the abolition of the time-expired policy of the Bank and upward review of penalty charges from 50 percent and 200 percent to 100 percent and 400 percent for penalty charges on shortages and counterfeits, respectively, in deposits by DMBs deposits.