Experts commend CBN over plan to change naira to paper notes

Lagos – Some financial experts on Wednesday
commended the CBN on its plan to change
naira notes from polymer to paper notes in
second quarter of 2014.

They said in Lagos that the plan was a good
decision, but long over-due.
NAN reports that the polymer notes were first
introduced in 2007 with N20 denomination
and later in 2009 with the N5, N10, and N50
denominations.
Mr Muda Yusuf , the Director-General of the
Lagos Chamber of Commerce and Industry
(LCCI), said that the decision was well
intended.
He said that it was an error on the part of CBN
to have produced polymer notes.
Yusuf urged the CBN to be cost conscious in
the production of naira notes, saying the
polymer notes lacked quality as they faded
easily.
He also advised the CBN to ensure that the
new naira notes would have longer life span
for them to stand the test of time.
“I think there is quality issue with the polymer
notes because they fade so fast.
“If you examine some of the polymer notes,
you will be struggling to read what is written
on them.
“So, I think it is a better decision because the
quality of the polymer is so poor and it was an
error for CBN to have opted for the use of
polymer notes,” he said.
Mr Harrison Owoh, the Managing Director, HJ
Trust and Investments in Lagos, said: “I wonder
why it took the CBN a period of six years
before it detected the flaws in the polymer
notes”.
Owoh said that the move by the CBN to phase
out the polymer notes might be politically
inclined, adding that the CBN had been “foot
dragging” on the issue for long.
NAN reports that Mr Tunde Lemo, Deputy
Governor, (Operations) at CBN, on Nov. 21,
said that Nigerians would be handling a new
generation of naira notes by second quarter of
2014.
He said that the bank had earlier announced to
the public that it would change naira from
polymer to paper and that all the notes would
not be withdrawn at the same time.
“Nigerians will be having new generation notes
in paper in the next few months.
“We will wait until the notes wear and tear.
When they wear, and they travel back to
Central Bank, of course they will be re-issued,”
he said.
According to him, the life cycle of a note in
Nigeria is between six months and a year and
the CBN took that decision six months ago.
“I reckon that in the next three to six months
you will begin to see these denominations re-
appear in paper.” (NAN)