CBN to Overhaul Policy on Coins

Sanusi_Lamido_Sanusi

There are strong indications that the Central Bank of Nigeria (CBN) will soon roll out measures that will increase the popularity and general acceptability of coins as a medium of

There are strong indications that the Central Bank of Nigeria (CBN) will soon roll out measures that will increase the popularity and general acceptability of coins as a medium of exchange in the country.

The move will  be geared towards improving the image of the smallest denomination of the nation’s medium of exchange.
CBN Governor, Mallam Sanusi Lamido Sanusi, dropped this hint  recently at the Bankers’ Committee retreat in Calabar.

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.”

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

“And 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.  So, we have set a very clear target for payment system efficiency and we want to start with what we have called ‘cash-less’ Lagos by early next year. We expect 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 added.

Sanusi maintained that considering the recapitalisation exercise that was concluded last September, officially, no commercial bank in the country, is currently under-capitalised. He also argued that no bank that 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.