The Central Bank of Nigeria (CBN) has concluded plans to outsource its currency processing and distribution function to a private firm as a way of promoting efficiency and effectiveness in currency management, a senior bank official said.
“The regulatory and participatory framework for interested firms has been put in place. We would ensure that guidelines are strictly followed,” the Director of Currency and Branch Operations Department of CBN, Ben Onyido, said.
”For any company to engage in the distribution of currency, the minimum paid-up capital is one billion naira, while those who which to participate in the currency processing would pay three billion naira,” Onyido said (118 naira=US$1).
The CBN official said the bank would continue to maintain the dignity of the Nigeria’s currency, noting that outsourcing would enable the organisation focus on its core mandate, which includes maintenance of external reserves to safeguard the value of the local currency, the Naira, serves as bankers of last resort and promote sound financial economic system.
He said the key areas of currency minting, printing and destruction would however not be outsourced.
He dismissed insinuations that CBN had awarded the outsourcing of currency contract to a South Africa company, stressing that due process would be followed in choosing those that will participate to ensure that the security of the country was not jeopardised.