NIGERIA – The Central Bank of Nigeria [CBN] has said it generates and destroys over 100 tonnes of bad Naira notes every week.
The regulator said the Naira notes are destroyed weekly through open-air burning at its 12 disposal centres across the country.
The CBN said these in a notice titled, “Request for Proposal for the Recycling of Paper Banknote Wastes.”
The apex bank in the notice said that it would work with private firms to begin the recycling of bad naira notes.
It said this was imperative considering the fact that open-air burning of Naira notes is detrimental to the environment and against the industry’s sustainable banking principles.
Section 18(d) of the CBN Act 2007 authorised apex bank to arrange for the destruction of currency notes and coins withdrawn from circulation under the provision of section 20(3) of the said Act or otherwise found by the Bank to be unfit for use.
The destruction of unfit banknotes in Nigeria is carried out by the CBN under strict security and environmentally sustainable manner.
The notice reads,
“The banknotes disposal operation is presently carried out in 12 disposal centres across the country weekly where about 100 tonnes of paper banknote wastes are generated.
“These wastes are destroyed through open-air burning in sites owned by the bank or rented, usually from the respective State Governments.
“Paper banknote wastes disposal by open-air burning impacts negatively on the environment thereby causing pollution and health hazards.
“The Central Bank of Nigeria in pursuance of its sustainability initiatives has reviewed the current method of banknote wastes disposal through open-air burning with the aim of adopting more environmentally sustainable method thereby reducing its carbon footprint.“
The CBN had last year called on customers of banks to return their mutilated naira notes to the banks.