Nigeria to overhaul policy on coins

Sanusi Lamido Sanusi

Nigeria to overhaul policy on coins

The Central Bank of Nigeria (CBN) says it will soon introduce measures that will increase the popularity and general acceptability of coins as a medium of exchange in the country.

The move, it says, will be geared towards improving the image of the smallest denomination of the nation’s medium of exchange.

CBN Governor, Mallam Sanusi Lamido Sanusi, declared this at the recent Bankers’ Committee retreat in Calabar, southern Nigeria.

He said: “Certainly, we are aware that Nigerians will like to see the use of coins and that is the reality. You will hear something from us in that respect in the next few weeks. It is an on-going process and obviously, these are things that go through the presidency and the board of the CBN. So, very soon, you will hear something about coins.”

Reports say the apex bank had been meeting on how to overhaul its policy on coins, so as to make the currency attractive.

Ongoing payment system

Commenting on the on-going payments system transformation exercise, he reiterated that the bankers’ committee and the apex banking regulatory body, was desirous of meeting the global standard, using Brazil as the benchmark.

According to the CBN governor, “basically, these include things like Point of Sale (PoS) density, the introduction of mobile banking, efficient alternative channels like internet banking and a general reduction in the percentage of transactions taken by cash”.

Sanusi said the bank has set a very clear target for payment system efficiency and would start with what it has called ‘cash-less’ Lagos by early this year.

He said the bank expects 40,000 PoS infrastructure.

“We have also started what is called the Nigerian Inter Bank Settlement System (NIBSS) Instant, which means you can go to your bank and carry out your transactions effortlessly and people are beginning to use that. We are promoting the use of direct credit and there has been a rapid increase in the issuance and usage of cards. So, it is a comprehensive programme for helping Nigerians move away from a situation where cash and cheques have been dominant in conducting transactions to electronic channels,” he said.

Sanusi maintained that officially, no commercial bank in the country was currently under-capitalised after the recapitalisation exercise that was concluded last September.

He also argued that no bank has non-performing loan ratio beyond the acceptable level, following the intervention by the Asset Management Corporation of Nigeria (AMCON).

“Now, does that bring an end to the process? No! It doesn’t. It brings us to the end of one phase of the process, which is basically about restoring the balance sheet of banks. There is an on-going process of improvement in governance, risk management and capacity building, not just in banks, but in the CBN as well,” the CBN governor said.

NP/Cokey