Vunderkind
Social Member
· “Nigeria’s Hot and Humid Climate Does Not Support Polymer Notes” – CBN
· “Other Hot and Humid Countries that use our products don’t have these complaints” – Foreign Polymer notes Supplier
· “This back – and – forth switch shows that Nigeria doesn’t have a defined policy” – Nigerians
Nigeria's getting ready to ditch N5, N10, N20 and N50 polymer notes
The Central Bank of Nigeria has announced that it would be switching Nigeria’s currency once more from the current polymer notes back to the original paper notes. This policy switch will be a reactive response to a global demand for tougher polymer-based currency.
In 2006, CBN and Australia’s Securency International entered into an agreement to print out the lower denominations of the naira (which are more circulated) in polymer form, while leaving the higher currencies in their current paper form.
At the time, there were allegations that Securency International had bribed several foreign officials, including Nigerians to secure currency-printing contracts.
The polymer notes were officially released in 2007, and now, six years later, CBN says it is now forced to reverse its policy. They explained that the polymer notes were an experiment, and that was why the larger denominations were not totally converted likewise into polymer.
“We only used polymer for N5, N10, N20 and N50, while N100, N200, N500 and N1,000 are in paper form. We soon discovered that the (polymer) notes easily fade out because of our peculiar hot climate in Nigeria… making them look tattered when in use over time,” says Ugochukwu Okoroafor, spokesman for CBN.
However, the initial reports received in the beginning seemed to indicate that polymer-based notes (which are currently used by 23 countries worldwide, including
Australia) were designed to last longer than the traditional pressed cotton-paper notes.
However, there have been public protests about the poor quality of our polymer-based notes.
Between 2006 and 2008, Securency International has supplied Nigeria with 1.9 billion polymer-based notes. However, when the bribery scandal began, the Reserve Bank of Australia pulled out of the firm, selling its 50% stake.
Innovia Security, which took over the firm earlier this year, says it would not mention its clients’ names, but that polymer notes are doing better in countries with climates as hot and humid as Nigeria’s.
Innovia Security reports that they have had no issues of premature ink wear or colour fading with their other clients.
CBN’s topsy-turvy policy
Concerned Nigerians have protested that these switches in policy are indications of the country’s incoherent policymaking techniques. Some people believe that the Central Bank of Nigeria didn’t carry out enough research and feasibility studies into the polymer-based notes before adopting.
Some believe that if Nigeria’s climate is the culprit as CBN is making it out to be, even paper notes may not be the solution as they tend to degrade with much handling.
There is also the added point that it isn’t quite easy to forge polymer notes and the fact that it may be expensive to embark on printing paper notes at this time.
The CBN has said, however, that the switchover which is likely to commence mid-2014 would not strain the national treasury and that it would be gradual.
CBN says it has decided to switch over to paper notes the next time they want to print new naira notes. The new money will be printed in Nigeria by the state-run Nigerian Security Printing and Minting Company.
· “Other Hot and Humid Countries that use our products don’t have these complaints” – Foreign Polymer notes Supplier
· “This back – and – forth switch shows that Nigeria doesn’t have a defined policy” – Nigerians
Nigeria's getting ready to ditch N5, N10, N20 and N50 polymer notes
The Central Bank of Nigeria has announced that it would be switching Nigeria’s currency once more from the current polymer notes back to the original paper notes. This policy switch will be a reactive response to a global demand for tougher polymer-based currency.
In 2006, CBN and Australia’s Securency International entered into an agreement to print out the lower denominations of the naira (which are more circulated) in polymer form, while leaving the higher currencies in their current paper form.
At the time, there were allegations that Securency International had bribed several foreign officials, including Nigerians to secure currency-printing contracts.
The polymer notes were officially released in 2007, and now, six years later, CBN says it is now forced to reverse its policy. They explained that the polymer notes were an experiment, and that was why the larger denominations were not totally converted likewise into polymer.
“We only used polymer for N5, N10, N20 and N50, while N100, N200, N500 and N1,000 are in paper form. We soon discovered that the (polymer) notes easily fade out because of our peculiar hot climate in Nigeria… making them look tattered when in use over time,” says Ugochukwu Okoroafor, spokesman for CBN.
However, the initial reports received in the beginning seemed to indicate that polymer-based notes (which are currently used by 23 countries worldwide, including
Australia) were designed to last longer than the traditional pressed cotton-paper notes.
However, there have been public protests about the poor quality of our polymer-based notes.
Between 2006 and 2008, Securency International has supplied Nigeria with 1.9 billion polymer-based notes. However, when the bribery scandal began, the Reserve Bank of Australia pulled out of the firm, selling its 50% stake.
Innovia Security, which took over the firm earlier this year, says it would not mention its clients’ names, but that polymer notes are doing better in countries with climates as hot and humid as Nigeria’s.
Innovia Security reports that they have had no issues of premature ink wear or colour fading with their other clients.
CBN’s topsy-turvy policy
Concerned Nigerians have protested that these switches in policy are indications of the country’s incoherent policymaking techniques. Some people believe that the Central Bank of Nigeria didn’t carry out enough research and feasibility studies into the polymer-based notes before adopting.
Some believe that if Nigeria’s climate is the culprit as CBN is making it out to be, even paper notes may not be the solution as they tend to degrade with much handling.
There is also the added point that it isn’t quite easy to forge polymer notes and the fact that it may be expensive to embark on printing paper notes at this time.
The CBN has said, however, that the switchover which is likely to commence mid-2014 would not strain the national treasury and that it would be gradual.
CBN says it has decided to switch over to paper notes the next time they want to print new naira notes. The new money will be printed in Nigeria by the state-run Nigerian Security Printing and Minting Company.