CBN to phase out polymer notes

The Central Bank of Nigeria (CBN) on Monday reiterated its decision to change some naira notes from polymer to paper. Mr Ugochukwu Okoroafor, Head of Corporate Communications Department of CBN, however, said in Lagos that the change would be gradual. The Deputy Governor of CBN, Mr Tunde Lemo, on April 2013, in Washington, said there were plans to withdraw the polymer notes. Okoroafor said that there was no fixed date for the change, but the apex bank would complete the phase-out before December 2013.

“We will print all the paper notes here in Nigeria as usual, but it is only when we have cash in hand that we will print the naira notes abroad. It depends on the volume the CBN intends to produce. Our hope is to print everything here in Nigeria, “ he said. Okoroafor said that the change became necessary because of the challenges associated with the use of polymer notes. He said that one of the challenges was the fading of the polymer notes and the high cost of printing.

Okoroafor said that in spite of the CBN’s plan to print paper notes, the bank would not relent in its effort to ensure that the cashless policy was effective. He said that the apex bank was working with the service providers to reduce challenges that could arise from banks’network connectivity. “We want less of cash in the system. We are encouraging people to use their payment devices such as Point of Sale (PoS) machines, phone lines and ATM cards, “ he said.