Finance

Central Bank of Nigeria Spends N74.84 Billion on Currency Production and Rollout in 2022

Published

1 month ago

August 21, 2023

In a financial disclosure recently released by the Central Bank of Nigeria (CBN), it has been revealed that a total of N74.84 billion was expended by the apex bank and its subsidiary in the production and distribution of currencies, including new naira notes, during the year 2022.

Despite the challenges posed by a scarcity of naira in the latter part of 2022, the CBN’s expenses witnessed a substantial increase of 40.42 per cent compared to the previous year’s expenditure of N53.29 billion on currency rollout.

Within the financial statements, it is highlighted that the CBN allocated N29.65 billion towards currency issue expenses in 2022, which marks an impressive surge of 94.66 per cent from the N15.23 billion disbursed in 2021.

The term “currency issue expenses” encompasses costs incurred in relation to printing, processing, distribution, and disposal of currency notes. This expenditure is recognized as cost when it is incurred, according to the bank’s definition.

In the same vein, the subsidiary responsible for the production of currency notes and coins, the Nigerian Security Printing and Minting Plc, incurred expenses amounting to N45.19 billion in 2022. This figure reflects an increase of 18.72 per cent from the previous year’s N38.07 billion.

The expenses cover various elements, such as raw material costs, employee benefits for production staff, electricity and diesel expenditures, as well as depreciation, repairs, and maintenance costs.

Notably, the total currency in circulation during 2022 was recorded at N3.01 trillion, indicating a decline of 9.47 per cent from the N3.32 trillion noted in 2021. Comparatively, in 2020, the expenditure associated with printing bank notes totaled N58.62 billion, signifying a decrease of 28.83 per cent from the N75.52 billion reported in 2019, according to the bank’s ‘2020 Currency Report.’

In a significant development in October 2022, Godwin Emefiele, the suspended Governor of the CBN, made an announcement regarding the release of redesigned naira notes by December 15, 2022. Furthermore, certain denominations of existing notes were set to lose their legal tender status by January 31, 2023.

This decision led to a prolonged cash shortage that persisted for months and had adverse repercussions on the economy.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Banking Sector

Central Bank of Nigeria Postpones 293rd Monetary Policy Committee Meeting

Published

17 hours ago

September 22, 2023

Investors King

The Central Bank of Nigeria (CBN) has announced the postponement of its 293rd Monetary Policy Committee (MPC) meeting, originally scheduled for September 25th and 26th, 2023.

Dr. Isa AbdulMumin, the bank’s Director of Corporate Communications, released a statement on Thursday confirming the decision.

In the statement, Dr. AbdulMumin stated, “The Monetary Policy Committee of the Central Bank of Nigeria has deferred its 293rd meeting, which was initially planned for Monday and Tuesday, September 25th and 26th, 2023, respectively. A new date will be communicated in due course. We regret any inconvenience this change may cause our stakeholders and the general public.”

While the CBN did not provide an official reason for the postponement, some industry experts suggest it may be related to the pending approvals for the newly appointed governor and deputy governors of the bank.

President Bola Tinubu recently nominated Yemi Cardoso as the potential head of the CBN. Additionally, Tinubu has endorsed the nominations of four new deputy governors for the apex bank, who are expected to serve for an initial term of five years, pending confirmation by the Senate.

The nominated deputy governors are Emem Usoro, Muhammad Abdullahi-Dattijo, Philip Ikeazor, and Bala Bello. However, the appointment of the CBN governor is contingent upon Senate confirmation, which is currently on a yearly recess.

The CBN assures stakeholders and the public that the rescheduled MPC meeting date will be communicated promptly as soon as it is confirmed.

Banking Sector

Currency in Circulation Surges by N1.7 Trillion Amidst Rising Cash Transactions

Published

18 hours ago

September 22, 2023

Investors King

The currency in circulation in Nigeria has surged by N1.7 trillion, driven by a surge in cash transactions.

According to data obtained from the Central Bank of Nigeria (CBN), as of the end of August, the currency in circulation rose to N2.7 trillion.

This substantial increase in currency in circulation comes after a 235.03 percent dip to N982.1 billion as of the end of February 2023 from N3.29 trillion at the close of October 2022, primarily due to the naira redesign policy spearheaded by the CBN.

However, the currency in circulation began its steady ascent once the policy concluded. Cash that had been previously withdrawn from circulation to promote electronic payments was reintroduced into the economy, contributing to this significant boost.

The data obtained from the CBN reveals that a whopping N2.3 trillion was removed from circulation during this period.

The CBN defines currency in circulation as all legal tender currency in the hands of the general public and within the vaults of Deposit Money Banks, excluding the central bank’s vaults.

The CBN further elucidated its methodology, stating that it employed an “accounting/statistical/withdrawals & deposits approach” to calculate the currency in circulation in Nigeria. This approach meticulously tracks the movement of currency in circulation on a transaction-by-transaction basis.

Under this methodology, each withdrawal made by a Deposit Money Bank at one of CBN’s branches results in an increase in currency in circulation (CIC), while each deposit made by a DMB at one of CBN’s branches leads to a decrease in CIC.

This surge in currency in circulation reflects the evolving landscape of financial transactions in Nigeria and underscores the importance of flexible monetary policies in facilitating economic growth and stability.

Finance

Oyo/Osun Customs Command Exceeds Revenue Target, Collects N47.4 Billion in Nine Months

Published

1 day ago

September 21, 2023

Samed Olukoya

The Oyo/Osun Area Command of the Nigeria Customs Service has reported a better-than-expected achievement in revenue collection, exceeding its targets while also making significant seizures of prohibited goods.

Outgoing Customs Area Comptroller, Babajide Jaiyeoba, made this announcement during the recent handover ceremony at the command in Ibadan, Oyo State.

Between January and September, the command generated N47.4 billion in revenue, according to Jaiyeoba. The customs area comptroller attributed this success to the dedicated officers and their unwavering professionalism, urging them to continue working as a cohesive team within the bounds of the law.

Under his leadership, the command also made seizures of prohibited goods valued at N308 million over the past nine months, a testament to their commitment to suppressing smuggling and upholding the customs regulations. Moreover, the command surpassed its revenue target set for the year 2022.

In a smooth transition of leadership, Ben Oramalugo assumed office as the new Comptroller. He emphasized the core duties of customs officers, which include revenue generation, trade facilitation, and the suppression of smuggling. Oramalugo pledged to uphold these mandates and called upon all officers to extend their cooperation to him as they did to his predecessor.

With these recent achievements and a committed leadership transition, the Oyo/Osun Area Command of the Nigeria Customs Service is well on its way to achieving even greater heights in revenue collection and ensuring compliance with customs regulations.