CBN discovers 13 pieces of fake notes per million genuine ones
By Jeph Ajobaju, Chief Copy Editor
Counterfeit banknotes worth N56.83 million were discovered and destroyed by the Central Bank of Nigeria (CBN) in 2020, a year that saw 13 pieces of counterfeit notes per million genuine ones in a decline dating back to 2017.
The ratio was 20 pieces of counterfeits per million (2019), 18 pieces per million (2018), and 16 pieces per million (2017).
The data for 2020 was disclosed in the Annual Report 2020 recently released by the Currency Operations Department of the CBN.
The CBN defined counterfeit currency as an imitation of currency produced without legal sanction from the state or government. It warned that producing or spending counterfeit currency is a form of fraud or forgery.
The CBN said to uphold the integrity of banknotes in circulation, it collaborated with security agencies in efforts to combat counterfeiting in 2020, per Nairametrics.
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“A total of 67,265 pieces of counterfeit notes with a nominal value of N56.83 million was recorded in 2020. This was 20.80 per cent in volume and 12.18 per cent value, lower than 84,934 pieces and N64.71 million in 2019,” the report explained.
“The N1000 and N500 denominations constituted the bulk of counterfeited banknotes, accounting for 69.06 per cent and 30.79 per cent, respectively, of the total counterfeit notes.
“The data on counterfeit notes in 2020 were mainly from four (4) sources, namely: Security Agencies, DMBs, CBN’s 24 processing centres and BWH Plc.
“The ratio of counterfeit notes to the volume of banknotes in circulation was 13 pieces per million, compared to 20 pieces per million banknotes in 2019.”
Detecting counterfeit banknotes
- Look, feel and tilt the banknotes
- Compare the bill with another of the same denomination and series
- Look carefully at the printing quality
- Examine the serial numbering. Fake notes often carry the same serial numbers.
Most counterfeited banknotes
The CBN had disclosed in its Annual Report in October 2019 that the most counterfeited notes in 2018 were N1,000 (34.49 per cent) and N500 (65.29 per cent).
It said the counterfeits were mostly from four sources, namely: “Security Agencies, Deposit Money Banks (DMBs), CBN’s 24 processing centres and BWH PLC.”
The ratio of counterfeit notes to the volume of banknotes in circulation rose to 18 pieces per million in 2018 compared with 16 pieces per million in 2017, according to the CBN. It added that it destroyed N98.82 million worth of counterfeit notes.
It discovered 119,663 pieces of counterfeit notes valued at N98.82 million in 2018, an increase of 1.30 per cent in volume and 5.77 per cent in value against 118,126 pieces worth N93.43 million in 2017.
The CBN said: “The increasing trend of counterfeiting of higher denomination banknotes underscores the need for more concerted efforts in managing the risk.
“The Bank would, however, sustain its publicity campaign, collaborative efforts with security agencies and collation of data on counterfeits, to mitigate the incidences of counterfeiting.
“Meanwhile, to maintain the integrity of the banknotes in circulation, the currency department continued to intensify its efforts at mitigating the incidences of counterfeiting activities during the period under review.”
