CBN To Re-issue Lower Naira Denominations

[Richard Akindele]

Lower currency denominations of N50, N20, N10 and N5 are to be re-issued by the Central Bank of Nigeria (CBN) under a new scheme that will also see them lasting longer. Vanishing technology will be used to produce them so they can withstand more stress.

Vanishing technology will be used to produce them so they can withstand more stress.

The changes will be effected before the end of the year, according to CBN Governor, Charles Soludo, who made the disclosure in Lagos on Tuesday.

The last time a major change was carried out on currency was in 1984, whereas, “under normal circumstances, (it) should be re-issued and re-designed at least once in eight years, that is the international standard�, Soludo explained.

The development would ensure that at least 50 per cent is saved annually on the cost of printing and minting new notes for use, especially as they are expected to last twice longer.

Plans are also underway to release more coins and N2 coins will be introduced in addition to the N1 and 50 kobo in circulation.

“We have very dirty notes in circulation, and the rate at which the currency is being mutilated is higher than the rate at which new ones are being issued. This is not just good enough and it must change for the better under the new dispensation�.

Currency reform is one of the 13-point consolidation and change agenda, and Soludo said there is a desire to have a clean notes policy, urging the citizens to respect the naira like the national flag.

The restructuring of the Nigerian Security, Printing and Minting Corporation (NSPMC) continues and the importation of currency would have stopped by the end of the year, he enthused.

He confirmed that reforms in the foreign exchange market are yielding the desired results as parallel market rate are converging and currently standing N144 to the dollar and still appreciating.

The first batch of 24 bureau de change operators got their first direct allocation from the CBN on Tuesday in Abuja, they will collect the second tranche on Thursday.

External reserves now stand at $36 billion, with a capacity to finance about 40 months of imports.


Soludo is optimistic that they would rise to $50 billion by year end.


He promised that depositors of failed banks would be paid through the existing 25 banks after clearance from the Nigeria Deposits Insurance Corporation (NDIC).


Four of the failed banks – Trade, Leadbank, Assurance and Allstates – have been fully liquidated by the NDIC.


He denied speculation that some of the five big banks are warehousing former Liberian President, Charles Taylor’s money.


“I can tell you that such claims and allegations are very baseless and that there is no iota of truth in them, in fact there is no Charles Taylor’s funds in any of the consolidated banks in the country�.

By Kanmi Ademiluyi and Mojeed Jamiu, fo Independent newspaper