CBN to address dearth of lower denominations banknotes in circulation

Central Bank of Nigeria (CBN) has said that the direct disbursement of lower denominations banknotes to market associations, merchants will help to address the dearth of the denominations in circulation.
The Director Currency Operations Department of the CBN, Mrs.
Priscilla Eleje disclosed this in Lagos at the enlightenment campaign on direct intervention on lower denominations Banknotes at Tojuosho market.
She said that in the recent time, the bank observed the inadequate circulation of the lower currency and the difficulties encountered by economic agents during business transactions, despite huge volume of the banknotes injected into circulation on annual basis.
She said that the apex bank recognises the important role market plays in the economic growth, hence the need to ensure accessibility to lower denominations to carry out legitimate transactions in the financial system.
In recognition of this she said the management of the CBN approved the direct disbursement of N200, N100, N50, N20, N10 and N5 to stores, shopping malls, supermarket etc in exchange of higher bills.
She however said “the framework for the disbursement of the denominations stipulates that it would not made through the respective Deposit Money Banks of the beneficiaries.
The beneficiaries must ensure that their accounts are funded before any withdrawal could be made on their behalf.” Eleje further said that DMBs expected to incorporate the demands of their merchants and market associations in their request to CBN when making normal withdrawal or deposits.
She pointed out that the banknotes are delivered to the market associations, at no extra cost and the association is not expected to add any cost to their members.
In order to guide against abuse and diversion of these banknotes, the apex regulators has developed a monitoring framework to ensure the judicious utilisation of the fund disbursed.
She explained that the exercise consists of the spot checks to the premises of the beneficiaries after receipt of disbursement as well as mystery shopper approach to shops, markets and toll gates, adding that any beneficiary found violating the procedure would be delisted.
She stated that when the intervention is met, it will principally ease accessibility and consequently address the dearth of these denominations in circulation.
Expressing the need to handle Nigerian banknotes properly, she said the disbursement which started in Abuja had been extended to Lagos, Kano, Enugu, Onitsha, Ibadan, Yola, Gombe, Katsina, Jos, Port Harcourt, Minna and Umuahia.