Business
Analysts Charge CBN On Polymer Notes
Some financial experts have urged the Central Bank of Nigeria (CBN) to reconsider its decision to change the polymer naira notes to paper.
An economist, Mr Henry Boyo, said that the CBN should rather change the polymer notes to coins.
Boyo said in Lagos that coins were more durable as legal tender than notes.
“I expect that the polymer notes will instead be changed to coins because coins can be used more often,“ Boyo, also the Chief Executive Officer of Les Leba Ltd., said.
Reports say that Mr Tunde Lemo, a Deputy Governor at CBN, on Sunday in the U.S., said that the apex bank would soon scrap the polymer notes.
The polymer notes are the N5, N10, N20 and N50 naira denominations.
Another economist, Mr Bismarck Rewane, said that the proposal would not have any negative impact on the economy.
“The change might not be noticeable. Besides, the pursuit of a cashless society will not make the proposal felt by the common man,“ he said.
Rewane said that a full blown cashless society in Nigeria would reduce cash in circulation by N1.7 trillion which had made the proposed policy untimely.
A former President of Association of National Accountants of Nigeria (ANAN), Dr Samuel Nzekwe said that the plan would be a waste of resources.
“Looking at the huge amount of money involved in printing those currencies, such monies should have been used for infrastructural development,“ he said.
Nzekwe said the CBN should focus on reducing capital flight instead of pursuing this proposal.
“The fund to be expended on the plan should be ploughed back to the economy to assist small business with credit,“ he said.
A Deputy Manager, Federal Inland Revenue Service (FIRS), Mr Akin Ojo urged the CBN to critically evaluate the proposal before implementing it.
He said that policy consistency was necessary to grow the nation’s economy.
“The apex bank needs to do in-depth research before embarking on any policy,“ Ojo said.
Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.
Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.
The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.
The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.
Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.
The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.
The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.
The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.
