CBN Moves To Commence Recycling Of Bad Naira Notes

The Central Bank of Nigeria (CBN) said it will soon commence the recycling of unfit banknotes.

It explained that presently, unfit banknotes in Nigeria are destroyed, under strict security and environmentally sustainable manner.

The Bank disclosed this in a notice on its website.

Section 18(d) of the CBN Act 2007 authorised “The Bank to arrange for the destruction of currency notes and coins withdrawn from circulation under the provision of section 20(3) of the said Act or otherwise found by the Bank to be unfit for use.”

However, it pointed out that, in pursuance of its sustainability initiatives, it has reviewed, “the current method of banknote wastes disposal through open air burning with the aim of adopting more environmentally sustainable method thereby reducing its carbon foot print.”

It added: “Recycling is the process of converting waste materials into reusable objects to prevent wastage of potentially useful materials, reduce the consumption of fresh raw materials, minimise energy usage, avoid probable air pollution (from incineration) and water pollution (from landfilling).

“It has been identified as the most environmentally sustainable method of banknote waste disposal that could be explore. In this mode, the banknote wastes would be recycled by converting the wastes into useful products. Recycling of banknote wastes would enhance economic activities in the country in addition to environmental sustainability.”

Therefore, the CBN, “is seeking proposals from accredited recycling companies interested in utilising paper banknote wastes in its recycling process. The purpose of this Request for Proposal (RFP) is to solicit competitive proposals from reputable companies that can recycle CBN paper banknote wastes into useable products that can be beneficial to the nation while adhering to Health Safety and Environment (HSE) Standards.”