The CBN Act, Section 2 (b) mandates the Central Bank of Nigeria to be the sole issuer of legal tender currency in Nigeria.
Naira notes and coins are printed/minted by the Nigeria Security Printing and Minting (NSPM) Plc and issued by the CBN, the CBN maintains an office called the Mint Inspectorate in the Abuja and Lagos premises of the NSPM Plc for quality control and receipt of finished Naira banknotes and coins.
Currency is issued to Deposit Money Banks (DMBs) through the branches of the CBN, and unfit notes are retrieved through the same channel. Currency deposited in the CBN by the DMBs are processed and sorted into fit and unfit notes in line with the Clean Notes Policy. The fit banknotes are re-issued, while the unfit ones are disposed.
