For quite a long time now, Nigerians have been experiencing a
situation where the N100 Nigerian currency notes in circulation has
been causing a great embarrassing to this country.
The most surprising part of the situation is that there are
different kinds of N100 notes in circulation: some are ragged; some
are joined together with the help of anything that can hold the
disjoining parts together; some are totally torn and defaced etc.
whereas, one cannot say that the President of the Federal Republic
of Nigeria and the Central Bank of Nigeria-herein after referred to
as CBN- are not aware of this situation. Also, the silence of the
President and the CBN on this situation especially in correcting
the anomaly necessitated the writing of this paper as a whistle
blowing so that the President, the CBN would be able to secure
national integrity for Nigeria.
Under the CBN Act, 2007, section 2, especially
section 2(a) and (b) of the Act, has stated the object of the CBN
thus ‘The principal objects of the Bank shall be to – (a) ensure
monetary and price stability; (b) issue legal tender currency in
Nigeria;’. Also, by section 15 of the
Act, the unit of currency in Nigeria
shall be the Naira which shall be divided into one hundred kobo.
And ‘Bank’ by section 60 of the CBN Act (supra) means the CBN.
Also, by section 17 of the Act, it is provided thus ‘The Bank shall
have the sole right of issuing currency notes and coins throughout
Nigeria and neither the Federal Government nor any State
Government, Local Government, other person or authority shall issue
currency notes, bank notes or coins or any documents or tokens
payable to bearer on demand being document or token which are
likely to pass as legal tender.
Furthermore, I have considered the provisions of the following
sections of the CBN Act (supra), the provisions which I
humbly refer the readers of this paper to to pay deep attention to.
They are as follows: sections: 18. The Bank shall – (a) arrange for
the printing of currency notes and the minting of coins; (b) issue,
re-issue and exchange currency notes and coins at the Bank’s
offices and at such agencies as it may, from time to time,
establish or appoint; (c) arrange for the safe custody of un-issued
stocks of currency notes and for the preparation, safe custody and
destruction of plates and paper for the printing of currency notes
and disc for the minting of coins; and (d) arrange for the
destruction of currency notes and coins withdrawn from circulation
under the provisions of section 20 (3) of this Act or otherwise
found by the Bank to be unfit for use. 19. –(1) The currency notes
and coins issued by the Bank shall be – (a) in such denominations
of the Naira or fractions thereof as shall be approved by the
President on the recommendation of the Board; and (b) of such forms
and designs and bear such devices as shall be approved by the
President on the recommendation of the Board. (2) The standard
weights and composition of coins issued by the Bank and the amount
of remedy and variation shall be determined by the President on the
recommendation of the Board. 20. –(1) The currency notes issued by
the Bank shall be legal tender in Nigeria at their face value for
the payment of any amount. (2) The coins issued by the Bank shall,
if such coins have not been tampered with, be legal tender in
Nigeria at their face value up to such amount or amounts as may be
determined, from time to time, by the Bank. (3) Notwithstanding
sub-sections (1) and (2) of this section, the Bank shall have
power, if directed to do so by the President and after giving
reasonable notice in that behalf, to call in any of its notes or
coins on payment of the face value thereof and any note or coin
with respect to which a notice has been given under this
sub-section, shall , on the expiration of the notice, cease to be
legal tender, but, subject to section 22 of this Act, shall be
redeemed by the Bank upon demand. (4) It shall be an offence
punishable by a term of imprisonment of not less than 5 years for
any person to falsify, make or counterfeit any bank note or coin
issued by the Bank which is legal tender in Nigeria. (5) A person
who refuses to accept the Naira as a means of payment is guilty of
an offence and liable on conviction to a fine of N50,000 or 6
months imprisonment: Provided that the Bank shall have powers to
prescribe them circumstances and conditions under which other
currencies may be used as medium of exchange in Nigeria. 21.-(1) A
person who tampers with a coin or note issued by the Bank is guilty
of an offence and shall on notes and coins imprisonment for a term
not less than six months or to a fine not less than N50,000 or to
both such fine and imprisonment. (2) A coin or note shall be deemed
to have been tampered with if the coin or note has been impaired,
diminished or lightened otherwise than by fair wear and tear or has
been defaced by stumping, engraving, mutilating, piercing,
stapling, writing, tearing, soiling, squeezing or any other form of
deliberate and willful abuse whether the coin or note has or has
not been thereby diminished or lightened. (3) For the avoidance of
doubt, spraying of, dancing or matching on the Naira or any note
issued by the Bank during social occasions or otherwise howsoever
shall constitute an abuse and defacing of the Naira or such note
and shall be punishable under Sub-section (1) of this section. (4)
It shall also be an offence punishable under Sub-section (1) of
this section for any person to hawk, sell or otherwise trade in the
Naira notes, coins or any other note issued by the Bank. (5) In
this section—— (i) “Matching” includes spreading scattering or
littering of any surface with any Naira notes or coins and stepping
thereon, regardless of the value, volume, occasion or intent. (ii)
“Spraying” includes adorning, decorating or spraying anything or
any person or any part of any person or the person of another with
Naira notes or coins or sprinkling or sticking of the Naira notes
or coins in a similar manner regardless of the amount, occasion or
the intent.’.
Therefore, from the above provisions of the CBN Act (supra), it
is clear that the printing and minting of all Nigerian currencies
including the N100 notes are within the exclusive powers and
functions of the CBN. Also, the CBN has the powers to withdraw all
defamed or defaced currencies including the N100 notes from
circulation for the purpose of their destruction and to then
provide a better currency into circulation.
Furthermore, one of the surprising scenarios is when banks, ATMs
and other government’s financial institutions too issue some of the
defaced N100 notes to customers. Also, commercial vehicles too and
the passengers as well as all Nigerians are almost taking this
situation as a normal situation, whereas, it is an embarrassing
situation that ought not to be tolerated. Also, several Nigerians
are used to squeezing the N100 notes; folding; writing on in place
of a paper, among others, whereas, they do not do the same with the
dollars of the United States of America and currencies of other
countries. We do all these wrongs to this country by ourselves
despite the consequences in section 21 of the CBN Act
(supra), which penalizes any of the wrong doings to
our currencies. I have also observed that coins are still part of
our currencies but it is surprising that one hardly finds anyone
spending these coins.
In all these sad situations, the President of the Federal
Republic of Nigeria (being the Chief Executive Officer of the
Federation) and the CBN have a lot of roles to play in correcting
all these embarrassing situations and that is what this paper
humbly requests from both of them to withdraw the bad N100 notes
from circulation and destroy same with immediate effect. More so,
this paper is just at the right time when the new financial year of
the CBN shall commence pursuant to section 48 of the
CBN Act (supra) which provides thus ‘The
Financial Year of the Bank shall begin on 1st January and end on
31st December’.
Finally, Nigeria is a great country. A country blessed with many
natural resources, good weather conditions and peoples of diverse
ethnics and dialects. So, any Nigerian that is proud of this
country would not demand embarrassment for her! It is indeed our
father land! I am proud to be a Nigerian!
E-mail: hameed_ajibola@yahoo.com