CBN to introduce N20 in synthetic form

The Central Bank of Nigeria (CBN) is expected to by the end of this year introduce N20 which would come in plastic form (polymer substrate). Also to be introduced are the N1, N2 and 50 kobo coins.

The Governor of the Central Bank of Nigeria, Prof. Charles Soludo who announced this yesterday at the weekly Federal Executive Council (FEC) meeting revealed that contract for the minting has already been awarded. Soludo was at the meeting to give an update on CBN and its reforms.

The CBN Governor regretted that Nigeria was the only country in the world that had a mint but still imported currency; however explained that such importation would end by December 31 this year. He said that the production output of the Nigeria Security, Minting and Printing Company (NSMPC) has now increased by over 30 per cent by December 2005 with the printing of N1.27 billion notes for the first time in over 10 years.

Still under the reform of the Mint, he said that its departments have been reduced to 16 from 23, while staff strength has been reduced from 10,003 in 1999 to 4,836 in 2006.

The model of privatization of the Mint targeted for next year is that the Bureau for Public Enterprise (BPE) will still do the exercise but I believe that selling the shares on the Nigeria Stock Exchange would be the best so that Nigerians can have an opportunity, the CBN Governor added.

On the exchange rate Solude said: The exchange rate has remained stable for the last two years and even for this year, it is still appreciating. We are now in full-scale liberalization of the foreign market which began on March 27, 2006 as the parallel market rate diverged significantly from the official rate of N151 to the dollar?

The CBN Governor predicted that within 10 years Nigerian banks should be among the top 50 to 100 banks in the world, saying that foreign banks that want to come into Nigeria to do business are very much in touch with the CBN.

The meeting presided by President Olusegun Obasanjo approved the repeal of the Community Bank Act number 36 of 1992 and the takeover of control of supervisory roles of the community banks by the Central Bank of Nigeria (CBN) in accordance with section 23 of the Banks and Other Financial Institutions Amendment Act Number 38 of 1998. It directed the Federal Ministry of Finance and the Central Bank of Nigeria to pay all benefits of staff of the National Board for Community Banks.

The Federal Executive Council presided over by President Obasanjo also approved the licensing of Swiss Port International, a world-class aviation service company that operates in 175 airports in the world as a ground handling company in Nigeria's aviation industry.

Minister of Information and National Orientation, Frank Nweke, disclosed these while briefing State House Correspondents on other decisions of the meeting also attended by Vice President Atiku Abubakar.

That Act has been a source of conflict between the Central Bank and the National Board for Community Banks. So, Council approved that the Federal Ministry of Finance and the CBN will provide joint funds to ensure full payment of the benefits of all staff of the National Board for Community Banks who may not be addressed by the CBN in good time. The Attorney-General of the Federation and Minister of Justice was consequently directed to prepare the instrument to the National Assembly?, he said.

Swiss Port International said to have relationship with over 150 airports in the world, would join two others, Sky Power Aviation Handling Company (SAHCOL) and the Nigerian Aviation Handling Company (NAHCO) to ensure better service in the nation's aviation handling sector.

Other decisions of the council were award of contract for the consultancy and engineering design of Ilesha-Akure-Owo road in Ondo state at N136 million; Share-Lafiaji- Pategi-Bachita road in Kwara State (N89.4 million) and the Ningi-Yalakunji-Fuskan Mata road in Bauchi state (N75.5 million, and N51.6 million consultancy service of environmental impact assessment for the Nigeria ? Cameroun Multi-national highway that would be sponsored by the Nigeria-Cameroun Commission Bilateral Commission and the Enugu-Abakiliki-Ikom-Mfun-Mabufe road that would be funded by the Africa Development Bank (ADB).