This country is in deep sheet. No sector is even working optimally
Cbn again...after the illegal recruitment, you people are still telling this unofficial lies.
its well ohhhhh

https://www.youtube.com/watch?v=IgX10mbPMD4

Mutilated naira notes:no immediate solution in sight.

Which of the ‘banks’?

Lloyd Banks? Azealia Banks? Reekado Banks?

Sirheny007:


I have been trying to understand the economics involved in that-
The other day, i went to a Fidelity Bank to pay in a certain amount. The teller there refused to collect some notes.
It was then I got to know that banks pay for the mutilated notes they collect.
The question is, why would CBN charge them??
I dont understand the loss CBN will incur if they accept the mutilated notes from these commercial banks.

CBN charges them because the thieves we call banks sell this notes when they're given a new one for free.
They request for new notes and it ends up in the hands of those women who sell money in occasions.
CBN started charging to minimise their robbery.

Sirheny007:


I have been trying to understand the economics involved in that-
The other day, i went to a Fidelity Bank to pay in a certain amount. The teller there refused to collect some notes.
It was then I got to know that banks pay for the mutilated notes they collect.
The question is, why would CBN charge them??
I dont understand the loss CBN will incur if they accept the mutilated notes from these commercial banks.

CBN charges them because the thieves we call banks sell this notes when they're given a new one for free.
They request for new notes and it ends up in the hands of those women who sell money in occasions.
That sorting excuse na hogwash.

dipoolowoo:
By Dipo Olowookere

Commercial banks operating in the country have been accused of deliberately flooding the market with dirty Naira notes, which have become an eyesore to citizens.

This is mainly seen in the N100 notes.

At several Automated Teller Machines (ATM) spread across the country, customers are given mutilated notes, a thing that has become a source of worry to many.

Acting Director of Corporate Communications at the Central Bank of Nigeria (CBN), Mr Isaac Okoroafor, while commenting on the issue, also accused the banks of hoarding new notes.

He said commercial banks in the country receive enough new notes and wondered why they are not being circulated.

The CBN spokesman absolved the apex bank from the debacle, pushing it to the commercial banks. He said the banks were supposed to employ people to do the sorting for them, but they refused in order to avoid the cost of employing personnel for this.

“Instead of bringing them to us sorted, the banks bring them unsorted. Then we started charging them N12,000 per box. A box of N1000 notes contains N10 million worth. So, a box of N500 notes is N5 million in that order. So, in a bid to avoid cost, they preferred to re-circulate old and mutilated notes,” Mr Okoroafor said.

On why so many mutilated Naira notes are still in circulation, CBN image maker claimed that people handle these notes badly, making them unable to get to their lifespan anymore.

He said for the lower denomination notes, they have a higher velocity of circulation.

“What that means is that you use it more often and as you use it in exchange, it gets worn out and gets torn more frequently. So, that also creates another problem.”

https://www.businesspost.ng/2018/01/10/banks-deliberately-flood-market-dirty-naira-notes-cbn/

If CBN cannot talk to them is it we Nigerians they will listen to? The same banks that have refused to stop the outrageous monthly deductions from accounts despite the apex bank's directive.

jidemoh:

You don't get it. CBN will take and replace mutilated notes at no cost if the commercial banks sort them appropriately. If you know how it works, monies taken to the Central Bank by a bank in January may not hit circulation till almost six months or even a year. The process of sorting by the CBN can even make it longer which is why the apex bank tries to discourage the commercial banks by charging N12,000 per box for sorting which these banks try to avoid by recycling old and mutilated notes into the system.

I agree.

Customers are paying already extra in the name of 'STAMP DUTY CHARGE', which debit N50.00 for every customer-induced deposit you receive into your bank account (except salaries). Why putting burden of cash sorting on the commercial banks tho.

I don gerrit.

Even if banks do the sorting, they ought be reimbursed cos I believe that should be a shared cost.

nonut:

CBN charges them because the thieves we call banks sell this notes when they're given a new one for free.
They request for new notes and it ends up in the hands of those women who sell money in occasions.
CBN started charging to minimise their robbery.

It is still a very poor approach to tackle the matter.
Are we short of economists who can come up with a better solution than charging commercial banks money for money.
It just doesn't make sense.

500 and 1000 notes ,torn on the sides .rough ,dirty etc . And when you withdraw from the ATM and get this notes ,you take into the bank for changing ,they will start making trouble for you denying that its their bank, where did I get the torn notes from if not the ATM?

Sirheny007:


I have been trying to understand the economics involved in that-
The other day, i went to a Fidelity Bank to pay in a certain amount. The teller there refused to collect some notes.
It was then I got to know that banks pay for the mutilated notes they collect.
The question is, why would CBN charge them??
I dont understand the loss CBN will incur if they accept the mutilated notes from these commercial banks.

Thank you. The N12k charge is not based on the denomination oooo. If u like fill the box with coins or N10 or N500 or N1k: same charge. And the DMBS cannot pass this cost to the customers. In order to avoid wahala, they simply stop sending them to CBN.

CBN told us they are also working on tight budgets too and advised everyone to adopt e-banking for transactions which is cheaper.

Besides, the machines at CBN 'crushes' these notes and thus record them as shortages for banks. No argument. You just have to pay for the shortages for peace to reign.

Cheers.

Sirheny007:


It is still a very poor approach to tackle the matter.
Are we short of economists who can come up with a better solution than charging commercial banks money for money.
It just doesn't make sense.

We ain't short of nothing.
Apc government has refused to put anyone with a good head on their shoulders to manage.
It's like they deliberately want to fail.

I also blame the foolish lawmakers who banned spraying of cash in occasions and then nullified it later, because of their own selfish agenda.

The lower denomination notes should be changed to coins.

Also, higher denomination notes such as N2,000 and 5,000 notes are needed.

Only problem is that Nigerians no go gree.

Sanusi tried to introduce such notes but there was an uproar.

I don'y understand why an instiyution such as the CBN with some autonomous status allow itself to be trampled upon by the citizenry.

Politicians and cbn officials don't handle lower denominations of naira that is why they are less concern.They handle in dollar MasterCards most.But babe,you mean your guy never give you new note since una dey date each other?

Rhemy2013:
I have 100naira(4pieces) that are useless to me..i havnt seen new 100naira note for some months now...

progress69:


some of you guys sef. na wa o. How will CBN withdraw it from circulation if the banks to send it to them?
if u read well, it says they are supposed to employ people the to sort the bad ones, but they send it to CBN unsorted, CBN in turn charges them for that per box. in a bid to avoid this charges, the banks rather recirculate the money. what is difficult for u to understand here>

tell them please, reading comments eh!

Wiseandtrue:
why charge the bank 12,000 CBN you people should also employ people to sort it out

Your policies is not customer friendly and its too harsh on Nigerians!

it's the duty of the banks to sort their cash

nonut:

We ain't short of nothing.
Apc government has refused to put anyone with a good head on their shoulders to manage.
It's like they deliberately want to fail.

Couldn't have been better said.

Abbeyme:
Story

Even the CBN is failing in their job of checking the activities of the commercial banks.

You, CBN, produce the notes, send them into circulation free of charge via the Commercial Banks, now wants to take a charge (fee) from the Commercial Banks for mopping them (your own produced currency o) from circulation.

Haba!! You no try

Just ignore the useless organization there. As if the banks are running a charity. You want a bank to mop up dirty notes, then you charge them before you accept to process them! That's not even the worst part, CBN will penalize the banks if there's a shortage in ANY of the boxes, often a percentage. And the same useless CBN will keep those boxes till it's time for withdrawals and give DMBs the SAME currencies only with CBN markings and sealed in polythylene, as if that automatically renews them.

This is so true, especially #100 notes very dirty ń tattered.

darqly:


Just ignore the useless organization there. As if the banks are running a charity. You want a bank to mop up dirty notes, then you charge them before you accept to process them! That's not even the worst part, CBN will penalize the banks if there's a shortage in ANY of the boxes, often a percentage. And the same useless CBN will keep those boxes till it's time for withdrawals and give DMBs the SAME currencies only with CBN markings and sealed in polythylene, as if that automatically renews them.

Hmmm.

So much for so less!

Nigerian politicians at work.

WilsonMayowa:
Thought i was the only one, the 100 naira too much

.





Same here oh

comshots:
Politicians and cbn officials don't handle lower denominations of naira that is why they are less concern.They handle in dollar MasterCards most.But babe,you mean your guy never give you new note since una dey date each other?

No he hasn't
Shey u will dash me new note then.

dipoolowoo:
By Dipo Olowookere

Commercial banks operating in the country have been accused of deliberately flooding the market with dirty Naira notes, which have become an eyesore to citizens.

This is mainly seen in the N100 notes.

At several Automated Teller Machines (ATM) spread across the country, customers are given mutilated notes, a thing that has become a source of worry to many.

Acting Director of Corporate Communications at the Central Bank of Nigeria (CBN), Mr Isaac Okoroafor, while commenting on the issue, also accused the banks of hoarding new notes.

He said commercial banks in the country receive enough new notes and wondered why they are not being circulated.

The CBN spokesman absolved the apex bank from the debacle, pushing it to the commercial banks. He said the banks were supposed to employ people to do the sorting for them, but they refused in order to avoid the cost of employing personnel for this.

“Instead of bringing them to us sorted, the banks bring them unsorted. Then we started charging them N12,000 per box. A box of N1000 notes contains N10 million worth. So, a box of N500 notes is N5 million in that order. So, in a bid to avoid cost, they preferred to re-circulate old and mutilated notes,” Mr Okoroafor said.

On why so many mutilated Naira notes are still in circulation, CBN image maker claimed that people handle these notes badly, making them unable to get to their lifespan anymore.

He said for the lower denomination notes, they have a higher velocity of circulation.

“What that means is that you use it more often and as you use it in exchange, it gets worn out and gets torn more frequently. So, that also creates another problem.”

https://www.businesspost.ng/2018/01/10/banks-deliberately-flood-market-dirty-naira-notes-cbn/

You charge them 12k for a box of 1m in N100 bills. That's 1.2% for every old 100 bill they change.

That's too much off the top cost.

They have to contend with fuel, office space, bullion transport, salaries, kickback to government officials, minimum reserves, TETFUND, AMCON, other funds, corporate tax, PAYEE, retirement benefits, VAT, WHT....The CBN generally has too many charges hauled at banks, not knowing these fees are passed on directly to customers in the form of outrageous fees. I don't know of which developed economy charges for Debit card fees. Etc That's why the cost of funds is as high as 20 to 30% for business people seeking loans or a simple civil servant seeking an overdraft. This stymie Nigeria's development, not just corruption.

Juliette05:
it's the duty of the banks to sort their cash

okay

Abbeyme:
Story

Even the CBN is failing in their job of checking the activities of the commercial banks.

You, CBN, produce the notes, send them into circulation free of charge via the Commercial Banks, now wants to take a charge (fee) from the Commercial Banks for mopping them (your own produced currency o) from circulation.

Haba!! You no try

Its free of charge, if the banks sort the notes out, b4 sending it to them. U don't expect the CBN to assume commercial bans responsibility for free. MOREOVER when the apex bank gave them new note, it was sorted.

Abbeyme:
Story

Even the CBN is failing in their job of checking the activities of the commercial banks.

You, CBN, produce the notes, send them into circulation free of charge via the Commercial Banks, now wants to take a charge (fee) from the Commercial Banks for mopping them (your own produced currency o) from circulation.

Haba!! You no try

They charged for SORTING!!! The bank is to separate the mutilated notes but they didn't. They are supposed to employ someone to do it, they wouldn't, then they should pay for the sorting service.

alphaconde:


so the government, banks and financial institutions send ghosts there?

oversabi

If you truly work with a bank to the level of going to CBN as the bank agent. You would have less time to reply.

ketle called pot black, cbn the most useless institution selling mint/new note to the black marketers. And cant manage commercial banks well

alphaconde:
lies

i work with these people u go to cbn to get money and they pay you these bad notes. even if commercial banks hoard note it would still find a way to people wallet only as a cost. so thats not an excuse.

the commercial banks hoard the new notes and sell it to people who sell it at occasions...



they sell a wrap of 20000 for 23000

Bullshit! The nair note is so dirty and like a sack cloth. The people, CBN and the commercial banks are all to be blamed. Imagine how market women, conductors and Petrol station attendant handle money, 9ja with their blame games all the time.

Ejanla07:


the commercial banks hoard the new notes and sell it to people who sell it at occasions...



they sell a wrap of 20000 for 23000

Stop saying rubbish.