Business
Mutilated Naira Notes: Citizens Blame CBN, Others
The high level of mutilated naira notes in the country has led to blame games, as citizens state the need for new prints production to replace the bad ones.
Speaking in an interview with The Tide in Port Harcourt Monday, a retired chartered accountant with Shell Petroleum Development Company Limited, Mr Isaac Ukaegbu, said that the N100 notes are the worst hit in this current level of mutilation, adding that “when a currency note is mutilated, acceptability becomes low”.
He said that even the banks find it difficult to change the very bad notes, adding that these days, people quarrel constantly in commercial vehicles and market places because of mutilated naira notes.
Ukaegbu noted that most times transactions become difficult because a business man or woman has rejected what is in a customer’s hand, stating that the Central Bank of Nigeria (CBN) is not helping the issue.
The retired accountant said that “CBN is expected to withdraw the notes through the commercial banks, but the Apex Bank has not given them any instruction to that effect.
However the value of naira remains the same mutilated or new prints.
Chief Executive Officer (CEO) of GEMP Engineering Limited, Mr Philip West said “nobody feels better with mutilated naira notes.
The CEO said that it is difficult to see N100 and 200 prints these days and that the ones in the system have suffered from over circulation adding that those in the market and general public should be blamed for this.
He noted that the higher denomination like N1000 and N500 notes are not treated the way the lower ones are treated, adding that the CBN is producing those ones on daily basis, which are on high demand during withdrawal inside the banks and at ATM centres.
In his contribution, Rev Victor Taylor of Assemblies of God Church, Silver Valley, branch blamed the mutilation on the material used to produce the lower denominations, saying that he has lost a lot of money due to rejection by traders.
He called on the CBN to create more awareness on the handling of the notes adding that there is an urgent need to produce new notes on the lower denominations especially the N200 and N100 notes.
A graduate of Computer Science who did his industrial training in the banking sector, Mr Chukwudi Uka, blamed the mutilation on the citizens, stating the need for everybody to use wallets for the notes.
Uka also noted the need for people to put the money they give to celebrators in the envelop instead of the ‘spraying’ which mutilates the naira notes.
He said that some commercial banks refuse to collect mutilated naira notes due to the commission charged by the CBN to change the notes.
Also, Gife Nwazue, an entrepreneur told The Tide that the N100 notes in circulation are irritating and always made her to quarrel with her customers who reject them.
It would be recalled that the Acting Director of Communications in CBN, Isaac Okorafor last week accused commercial banks of sabotaging the effort of the apex bank in replacing mutilated notes with new ones.
Okorafor said that the apex bank is aware of the high level of mutilated notes in the country and stated the need for “customers to demand new naira notes from the respective banks and reject dirty notes”.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
-
News4 days ago
Decentralizing Pipeline Surveillance Poses Greater Dangers To Niger Delta …. Group Warns
-
Politics4 days agoAPC Resumes Electronic Membership Registration Nationwide
-
Rivers4 days agoCourt Rules Out Interim Administration In Jumbo House, Bonny
-
Business4 days ago
33 Banks Raise N4.65tn As Recapitalisation Ends
-
Politics4 days agoAlleged Coup: Protests Rock N’Assembly As Detained Officers’ Children, Wives Demand Justice
-
Nation4 days agoNile University Hosts ICA Nigeria First National Confab On Global Communication
-
Sports4 days ago
Lewandowski Leads Top Stars Missing From W/Cup Roll Call
-
Sports4 days agoPara Games: Team Rivers Wins 53 Medals On Day 5 … Director Praise Athletes