CBN detects N56.83m worth of counterfeit banknotes in circulation: Report

*The Central Bank of Nigeria in collaboration with security agencies, has sustained efforts at combating counterfeiting activities to maintain the integrity of the Naira notes in circulation

Gbenga Kayode | ConsumerConnect

In continued efforts at tackling counterfeiting activities in the economy, the Central Bank of Nigeria (CBN) has disclosed that it discovered fake banknotes with a nominal value of N56.83 million in circulation in 2020.

The Bankers’ Bank in a currency report released Thursday, November 4, 2021, noted counterfeit currency is an imitation of currency produced without legal sanction from the state or government.

The CBN as the country’s baking regulator stated that producing or spending counterfeit currency is a form of fraud or forgery.

The Bank’s report said: “To maintain the integrity of the banknotes in circulation, the Bank, in collaboration with security agencies, sustained efforts at combating counterfeiting activities in 2020.

“A total of 67,265 pieces of counterfeit notes with a nominal value of N56.83 million was recorded in 2020.

“This was 20.80 percent in volume and 12.18 percent value, lower than 84,934 pieces and N64.71 million in 2019.”

According to the CBN, the highest denominations of the Naira were the favourites to be counterfeited.

Police arrests three over possession of ₦15million worth of fake banknotes   File Photo: The Guardian

“The N1,000 and N500 denominations constituted the bulk of counterfeited banknotes, accounting for 69.06 percent and 30.79 percent, respectively, of the total counterfeit notes,” Bank said.

The CBN report further noted the data on counterfeit notes in 2020 were mainly from four sources, namely security agencies, Deposit Money Banks (DMBs), CBN’s 24 processing centres and BWH Plc.

“The ratio of counterfeit notes to the volume of banknotes in circulation was 13 pieces per million, compared to 20 pieces per million banknotes in 2019,” the Bank stated.

ConsumerConnect reports the N1,000 banknote is the highest value paper money note in Nigeria.

On the obverse side of the N1000 bill are the portraits of Malam Alijy Mai-Bornu and Dr. Clement Nyong Isong. Both men are governors: the former of the Central Bank of Nigeria and the latter of Cross River State, South Nigeria.

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