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Frequently Asked Questions

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Why is the CBN the only bank that can produce the Naira?
  Section 2b and Section 17 of the CBN act gives the CBN the sole right to issue currency notes and coins throughout Nigeria and neither the Federal Government nor any state Government, Local Government, other person or authority shall issue currency notes, banknotes or coins or any document or token payable to bearer on demand being document or token which are to pass as legal tender. Section 18 of the CBN act also gives CBN the power to print banknotes and mint coins.

Are machines for printing money available for purchase by the public?
  No. The machines are only available to issuing authorities on request.

What Department of the CBN is responsible for the printing of money?
  Currency Operations Department.

What is the purpose of printing polymer notes?
  To extend the life span of the banknotes as the polymer notes lasts three times longer than the paper banknotes.

How long does the polymer note last?
  18 to 24 months.

Where can one change currency notes?
  Deposit Money banks (DMBs) and CBN.

Can coins be deposited in the Banks?

How are new currencies circulated?
  CBN evacuates the finished banknotes form Nigerian Security Printing & Minting (NSPM) Plc for distribution to all CBN branches. The branch further distributes the banknotes to DMBs where they are finally released to the public via withdrawals.

Why are there no new currencies in circulation?
  Analysis of the currency in circulation showed that a large and increasing proportion of the Nigerian currency outside the commercial banking system (COB) is held by the general public who hoard a lot of the new banknotes.

Why are the lower denomination banknotes scarce?
  The scarcity of lower denomination could be linked to the fact that these notes are held by the public. Absence of Automated Teller Machines (ATM) dedicated to dispense lower denominations has also contributed to the dearth of lower denomination in circulation.

Why are there huge numbers of dirty One Hundred Naira notes in circulation?
  Handling habits of the general public such as, squeezing, staining, spraying etc. greatly contributes to soiling of the banknotes.

In view of the fact that our politicians and leaders abuse the naira at rallies and public events, how do we expect the people to treat the naira with care?
  CBN constantly sensitizes the general public, politicians and leaders through public enlightenment campaigns through the print and electronic media on how to properly handle the naira. Further sensitization campaigns are arranged to engage politicians, leaders and other respected elders to make them change champions of the Bank’s Clean Notes Policy. This would enable the public follow suit.

Can an individual bring a different currency other than the Naira to the museum for exchange?
  No. However, Currency Museum receives donations of artefacts and currencies from other countries for display.

Does CBN collect old currencies as donations for the Museum?

How does the Central Bank of Nigeria know the accurate amount of currency in circulation (CIC) and how correct is the information on the site concerning currency in circulation?
  Currency in circulation can be defined as ‘currency outside the vaults of Central Bank, that is, all legal tender currency in the hands of the general public and in the vaults of the Deposit Money Banks. The Central Bank of Nigeria employs what is referred to as the "accounting/statistical/withdrawals & deposits approach" to compute the CIC in Nigeria. This approach involves tracking the movements in CIC on a transaction by transaction basis. That is, for every withdrawal made by a DMB at one of CBN’s Branches, an increase in CIC is recorded, and for every Deposit made by a DMB at one of CBN’s Branches, a decrease is in CIC is recorded. The transactions listed above are all recorded in the Central Bank’s Currency In Circulation account, and the balance on the account at any point in time represents the country’s Currency in Circulation. The accuracy of the CIC figure reported on the Bank’s website is a function of the postings made into the CIC account of the Bank at the 37 Branches across the country. The Bank however operates a robust reconciliation/call-over system which serves to highlight erroneous or non-impacted postings made into the CIC account in order to have them resolved within the shortest possible time. This ensures that the CIC figure reported by the Bank at any point is free from material error.

What are the factors considered before new currencies are printed?
  The factors include; inflation rate, Gross Domestic Product (GDP), buffer stock, replacement rate from currency disposed among others.

Are counterfeit notes processed money by the CBN with printing errors?
  No: Banknotes with printing errors are termed imperfect notes or irregular notes and are identified and disposed while counterfeit notes are fake notes produced by fraudsters using high resolution photocopiers.

Can members of the public report incidences involving fake currency to CBN?
  Yes. Reports should be submitted to the Director, Currency Operations Department or the nearest CBN Branch.

What will be the implication, when counterfeiters have the full knowledge of all the security features of the Naira Notes?
  It is unlikely for counterfeiters to have full knowledge of all security features as the banknotes are constantly upgraded with state of the art security features to stay ahead of counterfeiters.

Are commercial banks equipped to identify the security features on the naira notes?
  Yes, commercial banks use technologies like ultra violet light, microscopic lenses etc. to distinguish between genuine and counterfeit notes.


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Facts : 1/1/1972
PHYSICAL EXPANSION:Jos Branch was opened.
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