CBN Shortlists Three Foreign Firms to Print N5000 Note

The Central Bank of Nigeria is going ahead with the planned introduction of the N5,000 notes and the coinage of N5, N10 and the N20 in spite of the directive by the Senate to halt the process.
SATURDAY PUNCH investigations showed that the leadership of the CBN had already called for tenders for the production of the coins amid the controversy that greeted the bank’s announcement.

It was gathered that the CBN had shortlisted three firms from the United Kingdom, Germany and France to tender for the multibillion naira minting job.

The three minting and printing firms said to have been contacted are Delarue of Britain, D&G of Germany and Orbether of France. 

It was learnt that some of the top officials of the CBN were surprised that the bank’s leadership did not find it necessary to contact any of the Russian firms said to be reputed for the production of quality bank notes.

 It was gathered that the three foreign firms were contacted based on their understanding of doing business in the Nigerian environment.

CBN Governor, Sanusi Lamido Sanusi, had said during a news conference in Abuja on Aug. 23, that the bank had secured a presidential approval to introduce the N5,000 denomination and to coin the lower denominations of N5, N10 and N20. 

Sanusi had described the planned review as ‘Project Cure.’

According to him, the proposed N5,000 note would have the portraits of three distinguished Nigerian women, who contributed to the nation’s struggle for self-rule.

The women are Margaret Ekpo, Mrs. Funmilayo Ransome-Kuti and Hajiya Gambo Sawaba.

But the Senate, through its Committee on Banking, Insurance and other Financial Institutions, objected to the CBN’s decision and instructed the bank to suspend the move until it was properly briefed. 

The chairman of the committee, Senator Bassey Otu, told newsmen in Abuja on Monday decision taken on the nation’s currency required a parliamentary approval. 

The senator warned the CBN against sending the wrong signal to Nigerians, the domestic sector and the international community that the naira is of no value.

“I believe that a project of this nature requires parliamentary approval because there are numerous fiscal implications on the entire economy.  

“So, we are sending a letter to them to stop all further actions on this until the Senate of the Federal Republic is properly briefed,” he said. 

Similarly, the House of Representatives on Wednesday summoned Sanusi to brief the House on the issue.

The Chairman, House Committee on Banking and Currency, Mr. Chukwudi Onyereri, said during a news conference in Abuja that the decision to summon Sanusi was informed by the fact that the CBN had not informed the House of its plan to introduce N5,000.

  Onyereri said that the House would like to know if the proposed introduction of N5,000 notes did not conflict with the cashless policy of the bank.

Investigations showed that the CBN board had approved the production of 250 million pieces each of the N5, N10, and N20 proposed coins.

It was learnt that the CBN authorities had reduced the funds meant for the production of the coins from the initial N11.8bn to about N8bn.

The current budget for the proposed coins production shows a difference of N3.8bn. 

 The board of the CBN had met in May and took a decision to introduce the N5,000 denomination into the economy. 

The board agreed to give the minting and printing job to foreign firms with the requisite technology. 

Out of the N40.3bn that was approved for the implementation of the policy on the nation’s currency, the board approved N11.8bn for the minting of coins.

The 11-man CBN board comprises five executive members and six non-executive members.

Culled from PUNCH