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Nigeria: Currency Production Records N2 Billion Shortfall - Soludo
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This Day (Lagos)
4 July 2008
Posted to the web 4 July 2008
Stanley Nkwazema
Abuja
Governor of the Central Bank of Nigeria (CBN), Professor Chukwuma Soludo, yesterday revealed that the country is under producing currency notes to the tune of N2 billion.
Soludo, who yesterday appeared before the House of Representatives Committee on Finance, said "we don't have even a year buffer stock. We need about 3. 5billion to four billion notes to be printed in a year, but now we can only print about two billion in a year."
Testifying before the Committee Investigating Remittances and Non-Remittances into the Federation Account between 2003 and 2008, Soludo said the apex bank has problems meeting up with some of its demands, including printing of currency notes in various denominations.
He said the CBN ought to print about four billion naira notes every year, but it could only print about two billion notes annually for now.
Soludo, while painting the picture of dire strait at the apex bank, confirmed that CBN had not been able to send the returns of last year to the treasury, adding that it needed to be recapitalised.
He also stated that management of the bank had commenced discussions with the treasury on the issue of recapitalisation, but cautioned the lawmakers not to expect too much profit from the Bank, as that would affect its original mandate.
Chairman of the Committee, Honourable John Enoh, however drew his attention to the CBN Act 2007, which the governor had earlier said gives them the power to generate income and spend part of it without recourse to the National Assembly. But Soludo cautioned against amendment of the Act as suggested by some members of the committee.
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He said the most countries of the world allow the apex bank to do so for strategic reasons, adding that Nigeria should follow the global trend. He said between 2003 and 2007, the CBN generated a total sum of N656,844million, while its expenditure for the period was N458,501 and said the list of accounts (non federation) account balance stood at N57, 410,688,442.26 as at May 31, this year.
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