… 5 things to know about new notes
The capacity of the Nigeria Security Printing and Minting Plc (NSPMC) to meet up with the replacement of the amounts of Naira notes in circulation, is way below the mark, according to Quest Times investigations.
It has been discovered that the amount of Naira notes to be mopped up and replaced runs into trillions but the MINT can only print some hundreds of billions in a whole year.
Legislative sources indicate that this is one of the reasons why the National Assembly is asking the Central Bank of Nigeria (CBN) to extend the deadline for the mopping of the old Naira notes till the end of July 2023.
According to a competent source, “the capacity of the MINT to print new Naira notes is less than one trillion Naira but the amount of Naira notes to be replaced is much more than that. This is the challenge.”
But earlier today, the CBN Governor Godwin Emefiele apologized at a press conference, while stating that the January 31 deadline would not be extended.
ALSO READ: CBN wants you to know that your old Naira notes won’t be accepted beyond Jan 31
CBN’s Director of Corporate Communications, Mr Osita Nwanisobi also insisted in an interview with Quest Times that there will be enough notes to go around.
5 critical things to know about new notes
Since CBN Governor Emefiele announced in October 2022 the apex bank’s plan to redesign Naira notes, the decision has been greeted with mixed reactions in the Nigerian public space.
On November 23, 2022, President Muhammadu Buhari launched the new Naira notes, at the Presidential Villa, in Abuja, while the newly-redesigned N1,000, N500 and N200 bills became legal tender on December 15, 2022.
According to the CBN Governor, the newly redesigned notes retained basically all its features except for the rebranding of their colours and additions of new security features, making it “impossible to be counterfeited.”
However, while some commentators are of the view that the apex bank’s decision was noble in the context of the nation’s prevailing realities, some others question the timing, especially with the presidential elections slated for February.
QUEST TIMES, in this piece, reveals some interesting facts about the new Naira notes.
1. Where are the new Naira notes being printed?
According to the CBN, the new naira notes are printed in Nigeria by the Nigeria Security Printing and Minting Plc (NSPMC) or The MINT. The company, which prides itself as the “foremost and only full-fledged security printing organisation in the African sub-region”, was established by the Nigerian government in 1963, in partnership with the United Kingdom’s De La Rue.
MINT has been producing local currency notes on behalf of the CBN since 1965. The NSPMC, fully owned and controlled by the Nigerian government, is also wholly managed and operated by Nigerians.
2. Controversy about the ink colour washing off easily
In recent weeks, concerns have been raised on the quality of printing of the new notes. QUEST TIMES took time to check out the allegations that the notes wash off easily.
The NSPMC had earlier denied these allegations, saying that the new notes are of the same quality as the older ones. According to the agency, the new notes underwent the “same printing processes and finishing procedures which it has been doing since 2014.”
It said the new notes are “basically the same as the other notes in circulation. It also leaves traces of intaglio inks when rubbed on plain white surfaces. It is, however, important to note that new banknotes are generally light when issued, then become heavier in circulation on getting in contact with dirt and moisture.”
Some Nigerians have taken to social media platforms to perform a series of experiments to show that MINT’s new design is below standard. In one of such, a lady did a viral video to show that indeed the new naira notes colour ‘bleeds’ after washing.
In what looks like a counterclaim, Dr Joe Abah, former Director General of the Bureau of Public Service Reforms (BPSR), took to his Twitter handle to tweet: “I rubbed the new N500 note with water and tissue. No, the colour didn’t come off. Maybe the problem is with the new N1,000 note, which I haven’t seen. The new N500 note seems fine to me. I’ll try it in the washing machine and report back.”
Quest Times also did the experiment. But the bills were fine.
3. Who is the Head of the Nigeria Security Printing and Minting Plc?
President Muhammadu Buhari appointed Mr Ahmed Halilu as the Managing Director of MINT in 2022, following the resignation of former MD, Abbas Masanawa, to pursue his governorship ambition in Katsina State. Halilu had headed the company in an acting capacity following Masanawa’s resignation.
Halilu holds a master’s degree in Business Administration from the Ahmadu Bello University (ABU), Zaria, as well another Master’s degree in International Affairs and Diplomacy, also from ABU.
A member of Nigerian Institute of Management (NIM), he had previously worked with African International Bank Limited (AIB) and Zenith Bank Plc before joining the MINT.
Halilu, who has over 23 years of experience in the banking sector, is said to be an elder brother to the First Lady, Aisha Buhari.
Halilu participated in the Senior Executive Course 39, 2017 of the National Institute for Policy and Strategic Studies (NIPSS), Kuru, Jos, culminating in the award of Member of the National Institute, MNI.
4. Not enough new notes in circulation yet
Nigerians have been worried over the possibility of the new currency notes not effectively circulating before the January 31 deadline. Despite the CBN’s repeated assurances that there is a huge circulation of the new naira notes in the economy, evidence on the ground shows the old notes are still considerably higher than the newer ones.
To find out the reason(s) for the seeming shortage of new notes, QUEST TIMES reached out to Osita Nwanisobi, CBN’s Director of Corporate Communications. He said the apex bank is doing its best to increase the new notes in circulation.
According to him, CBN is “currently doing sensitization to increase public awareness of the new notes.”
The apex bank’s Deputy Director (Research) in Osun State, Adeleke Adelokun, also confirmed this development last week. According to him, the CBN “has printed enough new Naira notes, but we discovered that most of the banks have not collected the money.”
He noted that the apex bank has commenced a series of sensitization efforts in the rural areas.
According to him, the CBN has instituted a series of sanctions on banks with fines of up to “N1 million per box per day, depending on the number of days.”
The prospects of circulation of the new notes before the deadline appear dim for now. If the assurance of the CBN is anything to go by, the notes will circulate. The current trend may be a result of initial hiccups due to the hasty nature the policy was arrived at.
The biggest challenges the CBN faces at this moment is the seeming lack of cooperation from the banks and the incapacity of MINT to print enough to replace old notes in circulation.
When QUEST TIMES further inquired if MINT had the capacity to print enough notes to replace the old ones before the expiration of the expected deadline, Nwanisobi said “Yes, they do.”
ALSO READ: CBN to banks: Stop putting old notes in ATMs or face penalty
5. The connection between the new Naira notes, banks and 2023 elections
An expert in Monetary Economics at the Cardiff Metropolitan University, UK, Dr. Nasir Aminu, told QUEST TIMES that the entire CBN policy made no sense ab initio. According to him, the attempts by CBN to compel commercial banks which are essentially private, profit-making organisations to increase the new notes in circulation shows “how hastily they made the decision in the first place.”
He said if the policy was meant to curb the excesses of politicians who encourage voting fraud ahead of the 2023 elections, then it may have failed.
According to him, “If any presidential [or governorship] candidate asks any bank CEO for the new notes, s/he will get enough but not the masses in the rural area who engage in productive activities.”