The Central Bank of Nigeria (CBN) disbursed lower denomination banknotes worth N237.14 billion to microfinance banks (mfbs), merchants, shopping malls, market associations among others in 2019, to increase the circulation of such notes in the country.
The apex bank disclosed this in its 2019 annual report released yesterday.
The report stated:”In a bid to increase the circulation of lower denomination banknotes in the country, the Bank continued its direct disbursement of banknotes to microfinance banks, merchants, shopping malls, market associations, toll gates, among others.
“A total disbursement of N7.72 billion was made to various market associations, merchants and retailers in fourteen (14) states at end-December 2019.
Approval was given to Union Bank Plc in May 2019 to participate in the Scheme and it disbursed the sum of N117.42 billion in lower denominations through their configured ATMs/OTC across the country, while 3 microfinance banks disbursed the sum of N112 million.”
Meanwhile, the CBN circulated N2.4 trillion during the period. This represents a five percent rise in currency in circulation when compared to N2.3 trillion circulated in 2018.
The apex bank further stated that “Currency-In-Circulation (CIC) grew by 4.9 per cent to N2.4 trillion at end-December 2019. The growth in CIC reflected increased use of cash in the economy.
“ A breakdown of the CIC indicated that, in terms of volume and value, the proportion of higher denomination banknotes (N100, N200, N500 and N1000), in total, rose to 45.8 and 97.7 per cent, from 44.3 and 97.6 per cent in 2018, respectively.
“The lower denomination currency notes continued to dominate in terms of volume, constituting 54.2 per cent of the total. In value terms, it constituted 2.3 per cent of total banknotes.”
During the reviewed period, over 128,000 kg of polymer waste was evacuated, generating about N4.5 million for the apex bank.