Currency Issue System

 

Naira notes and coins are printed / minted by the Nigeria Security Printing and Minting (NSPM) Plc and sometimes, other overseas companies, 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 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.

 

 

*Why Change The Currency Notes?*

 

(a)To make them more secure.

(b)To make them last longer in circulation and look cleaner.

(c)To reduce the cost of replacing dirty notes.

(d)The new currency notes are now smaller in size and would easily fit into wallets.

*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.