Of the N3.2 trillion in circulation, N2.7 trillion is outside the banking sector,the Central Bank of Nigeria CBN has said.
Mrs. Amina Giwa, the Deputy Director, Currency Department of the apex bank disclosed this in Port Harcourt, the Rivers State capital, at the ongoing 2022 Nigeria Deposit Insurance Corporation (NDIC) FICAN workshop programme .
Presenting a paper entitled: ‘Redesign of Naira: Benefits to financial system and the Nigerian economy’, she said 85% of cash in circulation found to be constantly outside the banks over the years.
Speaking on the reasons for the redesigned of the Naira,she explained that it was to fight against counterfeiting of the currency and discourage hoarding among other things.
According to the Deputy Director, 99% of counterfeit discovered are in the three highest denominations including N1000, N500, and N200 notes, adding that the circulation of counterfeit bank notes can undermine financial stability and also weaken national economies and jeopardize livelihoods.
She enumerated the benefits of the steps taken by CBN to include streamlining the volume of banknotes in circulation, disrupting and blocking underground economy such as terrorism, money laundering among others.
She added that the move will also disrupt counterfeit activities and promote adoption of e-transacting channels (enhance financial inclusion), enhance visibility and control of the money supply, and reduce cash management expenditure.
Presenting a paper entitled: Role of the Nigeria Deposit Insurance Corporation: Beyond Deposit Insurance’ Dr Kabir Katata, disclosed that NDIC has developed curriculum for teaching financial inclusion in Nigerian universities.
Mr. Bashir Nuhu, the Director, Communications, Public Affairs Department CPAD, who prepared the paper,said the move is all part of efforts to ensure financial awareness is taken to all the nook and cranny of the countries, adding that special events such as trade fairs, are used to enlighten the public on the services of the Corporation.
He implored the media and all stakeholders to work hard to improve financial inclusion, stressing that it is the only way to reduce poverty in the country.
According to him, NDIC among other things, serves as a safety net for bank Depositors to ensure that the monies are safe and can be recovered in the event of any liquidation.
He noted that all NDIC works hard to ensure are that ‘those who put their monies in the banks do not loose anything, distress resolutions, to ensure financial system stability”.