How CBN destroyed over N6trn banknotes under Buhari

Report claims that the Central Bank of Nigeria (CBN) may have destroyed over N6tn worth of mutilated and old banknotes under the expiring administration of President Muhammadu Buhari.

According to the report published by the Punch, data obtained from the annual reports of the currency operations department of the CBN between 2016 and 2020 indicated that the apex bank destroyed mutilated banknotes worth N4.1 trillion during the five-year period. 

“Our correspondent could not readily obtain data on the amount of mutilated banknotes disposed off by the central bank in 2021 and 2022 as of press time on Sunday,” the newspaper said.

It further posited that the CBN is expected to destroy over 80 per cent of the N3.23 trillion banknotes currently in circulation as a result of its decision to redesign N100, N200, N500, and N1, 000 notes.

“The move will bring the total amount of naira notes destroyed by the current administration to at least N6tn,” according to the report.

Recall that CBN Governor Godwin Emefiele recently announced that the bank would release re-designed 200, 500 and 1000 naira notes by December 15, 2022.

The central bank chief gave the hint at a special press briefing in Abuja.

He claimed that the move was targeted at controlling currency-in-circulation as well as curbing counterfeit currency and ransom payments to kidnappers and terrorists.

In its breakdown of the CBN data on the destruction of naira notes from 2016-2020, the report said,

“In 2016, the apex bank destroyed the sum of N829.94bn in mutilated notes. In 2017, the sum of N977.23bn in mutilated banknotes was again destroyed by the CBN. The years 2018, 2019 and 2020 saw the destruction of N814.59bn, N814.44bn and N698.59bn banknotes, respectively.”

It added, “In a related development, further findings showed that N3.88bn was spent by the CBN to destroy the N4.1tn mutilated banknotes disposed off between 2016 and 2020.

“This followed an expenditure of N1.43bn spent on currency disposal in 2016, while the succeeding years of 2017, 2018, 2019 and 2020 witnessed currency disposal costs of N594.6m, N662.2m, N647.8m and N538.5m, respectively.”

The report by the Punch is coming at a time some stakeholders are kicking against the CBN move to redesign the naira notes.