In
response to traders’ cries over acute shortage of lower denomination
currency notes, the Central Bank of Nigeria (CBN) yesterday, kicked off
an exercise aimed at flooding the market with N100, N50, N20, N10 and N5
notes.
But the apex bank also warned against hoarding and cloning of
the notes as anyone caught in the act would be made to face the full
wrath of the law.
Speaking at a sensitization programme on
Tuesday at the Wuse market in Abuja, the Director, Currency Operations
of CBN, Mrs. Priscilla Eleje, said the apex bank was unhappy that lower
denomination naira notes were in short supply, promising to tackle the
challenge headlong.
She also warned those who hoard the lower
denomination naira notes for the purpose of profiteering from the
resale to jettison the idea as they risked prosecution when caught.
She said: “We spend money to print money
every year. But we don’t see the money in the market. So, we called the
market unions and banks to a meeting in our office on how to resolve
that.
“We are here to inform you that we have
started giving money to you traders through your associations and the
banks. We will monitor the disbursements and spending. No more sales of
lower denomination currency at pei dei market. The police is on the
lookout and will arrest and prosecute offenders. We will give the money
to the association via the commercial banks.
“All you need to do is take your higher
denomination currencies to your association and exchange with lower
denomination currency equivalent. It’s not like the money is free. It’s
just an exchange and we want it to be available to you people to do your
business with ease. So, please let us know if you can’t access it. We want to ensure you trade seamlessly,” she said.
On possible counterfeiting of the
currency, Eleje described it as a complete economic loss, stressing the
main loser is the holder.
“Counterfeit money is an economic loss.
Don’t collect it and don’t spend it. The loss is on you. That’s the law.
However, we have machines with special in-built features to detect fake
or counterfeited notes. It’s a big crime and we are dealing with it.
“The banks have been directed to return
the counterfeited currency to us so that we study it to see the security
features that are being counterfeited. So we try to know which features
are probably vulnerable and so we improve on those going forward.
“We have reports of banks issuing
counterfeit money. We are also monitoring banks issuing money that are
mutilated. Report such banks to CBN and you will get a redress,” she
advised.
In his remarks, the Chairman of the Wuse
Market Association, Raphael Okorie, hailed the apex bank for the prompt
intervention with the lower denomination shortage nightmare and numerous
supports given to the Nigerian business community. He said the CBN has
done a lot in a short time in helping traders grow. “It is the first
time in history that CBN is coming to interact directly with traders to
feel their pulse and know where it hurts them.
“In a short time, all the issues raised
will be tackled by CBN. Small denomination currency shortage is often a
hiccup to business. We are talking of denominations like N100, N50, N20,
etc. It brings about friction between the trader and the customer and
even between traders,” he said.
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