Business

CBN Spends N58.6bn To Print 2.5bn Naira Notes

Published

3 years ago

November 5, 2021

The Central Bank of Nigeria (CBN) spent the sum of N58.618billion to print 2.518billion Naira notes, valued at N1.063trillion in 2020.
This was contained in the bank’s 2020 Currency Report posted on its website, yesterday.
It indicated a decrease in the bank’s expenditure on currency printing, which stood at N75.523billion, in 2019 and N64.040billion in 2018.
The current management of the CBN under the leadership of Mr. Godwin Emefiele, has been driving the cashless policy with a view to cutting the cost of printing bank notes and cash management, in the country.
The new e-Naira was also initiated in line with the policy.
According to the report, “The total cost incurred on printing of banknotes in 2020 amounted to N58,618.50million, compared with N75,523.50million in 2019, indicating a decrease of ¦ 16,905.00million or 28.84 per cent.”
CBN indicated in the report that the notes were printed in-country by the Nigerian Security Printing and Minting Plc (NSPM Plc).
The report indicated that CBN, “approved an indent of 2,518.68million pieces of banknotes of various denominations in 2020 to satisfy the currency needs of the economy, compared with 3,830.94million in the preceding year.
“The NSPM Plc was awarded the contract for the production of the entire indent. At end-December, 2020, NSPM Plc had delivered 100 per cent of the approved indent.”
It put the total stock of currency (issuable & non-issuable) in the vaults of the bank at end December, 2020 at 2.747billion pieces, compared with 2.641billion pieces in 2019, indicating an increase of 105.73million pieces or 4.00per cent.
“At end-December, 2020, the total issuable notes (newly printed notes and Counted Audited Clean notes) was 592.94million pieces, compared with 726.43million pieces in 2019, representing a decrease of 133.49million pieces or 18.38per cent,” the report showed.
The report also indicated that a total of $1.830billion was procured over the course of 2020.
According to the report, “This value represents a decrease of $2,120.00million or 53.67per cent relative to the $3,950.00million procured in 2019.
“This was used to fund Bureaux De Change (BDC) operations, payment of estacode and Personal Travel Allowances (PTA) to Ministries, Departments and Agencies (MDAs).”
CBN said that the receipt and authentication of foreign currency deposits by Deposit Money Banks (DMBs) reduced significantly due to the downturn in global trade in 2020.
The report indicated, however, that Currency-in-Circulation (CIC) increased by 19.06per cent from N2.441trillion at end December, 2019 to N2.907trillion at end-December, 2020.
“The growth in CIC reflected the continued dominance of cash in the economy. Analysis of the CIC shows that a greater proportion was in higher denomination banknotes (N100, N200, N500 and N1000).
“The higher denomination banknotes together accounted for 63.47per cent and 98.08per cent of the total CIC, in terms of volume and value, respectively. The volume of lower denomination banknotes (N5, N10, N20, N50), accounted for 28.43per cent of the total CIC and 1.92per cent, in terms of value as at end-December, 2020.”
In 2020, a total of 173,585 boxes of banknotes valued at N980.758billion was processed, compared with 260,651 boxes of banknotes valued at N1.533trillion in 2019.
This represents a decrease of 33.40per cent in the number of boxes or N552.971billion in value of processed banknotes.
On counterfeit notes, the report showed that a total of 67,265 pieces of counterfeit notes with a nominal value of N56.83million was confiscated in 2020, indicating a 20.80per cent decrease in volume and 12.18per cent decrease in value, compared with 84,934 pieces valued at N64.71million in 2019.
It said, “The global standard for the number of counterfeit per million is 100. The ratio of counterfeit notes to volume of banknotes in circulation was 13 pieces per million in 2020, compared to 20 pieces per million banknotes in 2019.
“The N1000 and N500 denominations constituted the most counterfeited, accounting for 69.06percent and 30.79 per cent, of the total counterfeit notes in 2020, respectively”.

Business

Minister Inspects Nigeria/Benin Republic-owned Sugar Firm … Decries Decrepit Condition

Published

2 days ago

January 17, 2025

The Tide

Nigeria’s Minister of State, Industry, Federal Ministry of Industry Trade and Investment, John Owan Enoh, has inspected the Savé Sugar Company, a joint venture between Nigeria and Benin Republic, decrying the current decrepit condition of the facilities.

Inspecting the once thriving company located in Cotonou, Benin Republic recently, the Minister expressed appreciation for the extra security measures put in place by the government of Benin Republic to secure the Savé Sugar Company which was Established in 1975.

Special adviser to the Minister on Media, Diana Tiku Nsan, said on arrival in Cotonou, Sen. Enoh paid a courtesy visit on his Benin counterpart, Minister He noted that during the ship’s port calls, the team engaged with the Indian diaspora worldwide.

Approximately 200 individuals received medical attention from the naval health team during the camp, and beneficiaries were also given free medications.of Commerce and Industry, Benin Republic, Shadiya Alimatou Assouman, where a meeting with both ministers resonated with shared concerns and aspirations of both countries.

Assouman said, “this visit marks a historic moment. Since the inception of the company, no Nigerian minister has visited the facility.

“Your bold step signifies a commitment not only to the sugar complex but also to the bilateral relations between our nations”.

The Minister, who proceeded on an on-site inspection of the facility, observed that the company has experienced changing fortunes and now lies almost decrepit with the last managers, Compliant of China, having vacated in May 2023, at the expiration of a 20-year lease agreement.

After the assessment, the Minister said, “various meetings at both technical and policy levels have continued to be held, but an action is needed.

“This visit is an eye opener, and more than anything else, we seek its revival. The two countries, as a matter of urgency, need to get a worthy core investor within the shortest possible time.

“This is not just about sugar; it is about livelihoods, partnerships, and the shared future of our nations.

“However, where that is not feasible, the recommendation of the 2021 joint assessment report which submits to the selling of our equity in the company will be brought to the table for possible consideration. Action starts today”.

Nsan also said “the deteriorating situation with the Savé Sugar Company Ltd predates the exit of the Chinese. A joint assessment visitation in 2021 was quite damning and recommended that Nigeria sell its equity holding in the company.

“This was declined by the Buhari administration, which instead preferred that upon expiration of the lease agreement with Compliant of China, the two governments competitively source for new core investors.

Business

NGA Becomes Official Partner To 29th Gas Conference … As President Set To Address 2025 World Summit

Published

2 days ago

January 17, 2025

The Tide

The Nigerian Gas Association (NGA) has been officially announced as an “Association Partner” for the 29th World Gas Conference (WGC) 2025, which will take place from May 19 to 23 in Beijing, China.

The WGC 2025 is organised by the International Gas Union (IGU) and hosted in 3-year intervals.

It is the largest and most influential event in the global gas industry bringing together thousands of industry leaders, policymakers, gas executives, specialists, and exhibitors.

The event serves as a critical platform for discussing the future of the gas sector, showcasing innovations, and facilitating high-level collaborations among key stakeholders.

President of the NGA, Akachukwu Nwokedi, will join global energy and gas leaders who will headline the event as speakers.

The conference, billed to focus on the theme, “Energising a Sustainable Future”, is projected to have over 30,000 participants from 70 countries, including 600 companies, 300 exhibitors, and 400 expert speakers.

Nwokedi will emphasise Nigeria’s critical role as a major global natural gas market player.

With over 200 trillion cubic feet of proven gas reserves, Nigeria is Africa’s largest resource proprietor and one of the top ten globally.

Nwokedi will detail Nigeria’s initiatives aimed at exploiting these vast reserves to drive domestic economic growth, secure energy supply, and contribute to international sustainability goals.

Reflecting on the upcoming event, Nwokedi said, “We are proud to have the NGA support the WGC 2025 as an Association Partner.

“The World Gas Conference is a key forum for sharing knowledge and driving meaningful dialogue on the future of natural gas, particularly as the world grapples with the need for a balanced energy transition. Nigeria has a wealth of natural gas resources that, if appropriately harnessed, can position us as a leader in global energy markets.

“The WGC will be a veritable platform for sharing updates on recent industry initiatives, which aims to showcase Nigeria as a destination for gas investments, boost the country’s domestic economic growth and the role of gas in Nigeria’s decarbonisation efforts.

“I am honoured to have been invited to speak as the leader of Africa’s leading gas advocacy group to expound on Africa’s plans to harness untapped natural gas reserves in providing energy security for its 600+ million undeserved population, and how Nigeria is at the forefront of this energy revolution.

“This is important because we understand that maximising the potential of these resources will require strategic investments in infrastructure, policy reforms, and a commitment to cleaner energy solutions”.

With more than 90 years of history, the WGC has consistently provided a platform for discussing the evolving role of natural gas in the global energy mix.

The NGA invites its members and other natural gas value chain players to participate prominently through sponsorship and inclusion in the Nigerian Pavilion at the conference in China.

As Nigeria’s largest gas advocacy body, the NGA remains steadfast in its mission to promote natural gas as a critical component of Nigeria’s energy future and advocate for policies that support its sustainable development.

Through partnerships with global organisations and platforms like the WGC, NGA aims to ensure that Nigeria maintains its position as a leading player in the energy sector.

Business

Dangote Refinery Affecting European Oarkets – OPEC

Published

2 days ago

January 17, 2025

The Tide

The Organisation of Petroleum Exporting Countries (OPEC) has said Dangote Refinery is affecting European markets, as importation of petroleum products in Nigerian had dropped.

A report by OPEC, midweek, noted that in the last quarter of 2024, “imports also declined, particularly oil product imports, improving the outlook for the external sector”.

In September 2024, Dangote Refinery, a $20 billion project, spearheaded by billionaire Aliko Dangote, officially begun petrol production, marking a significant milestone in Nigeria’s energy sector.

Announcing the feat, Dangote said: “This refinery will fuel growth, development, and prosperity by supplying energy to our people”.

Accordingly to data OPEC got, the average daily crude production in Nigeria hit 1.507 million barrels in December.

The OPEC report noted that the Dangote Refinery, at 650,000 barrels per day, bpd capacity, is 246,00bpd more than Shell’s Pernis refinery in the Netherlands. Also, BP Rotterdam in the Netherlands has 380,000 bpd capacity.

“The ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its gasoline (petrol) exports to the international market will likely weigh further on the European gasoline market.

“Continued gasoline production in Nigeria, a country that has relied heavily on imports to meet its domestic fuel needs in the past, will most likely continue to free up gasoline volumes in international markets, which will call for new destinations and flow adjustments for the extra volumes going forward”, OPEC stated.