The Central Bank of Nigeria disbursed lower denomination banknotes worth N237.14bn to microfinance banks, traders and others in 2019 to increase the circulation of such notes in the country.
This was disclosed in the 2019 annual report of the apex bank released recently.
“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 N7.72bn was made to various market associations, merchants and retailers in 14 states at the end of 2019.
“Approval was given to Union Bank in May 2019 to participate in the scheme and it disbursed N117.42bn in lower denominations through configured Automated Teller Machines and Over The Counter across the country, while three microfinance banks disbursed N11m,” CBN stated.
Meanwhile, the apex bank circulated N2.4tn during the period. This represents a five per cent rise in currency in circulation when compared to N2.3tn circulated in 2018.
The regulator also stated, “Currency-In-Circulation grew by 4.9 per cent to N2.4tn 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 N1,000), 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.”
