The recent claim by a former Deputy Governor of the Central Bank of Nigeria (CBN), Dr. Obadiah Mailafia, that 20 percent of the total currency in circulation in the country is fake, calls for an immediate investigation and action to stem the trend. The former CBN boss, who made the stunning revelation at a public hearing on the 2017 Budget at the National Assembly, Abuja, lamented that the relevant authorities appear to be ignorant of the dangers of having fake currency in circulation. He also warned that the development is highly detrimental to the nation’s economic growth.
The CBN has, however, swiftly refuted the claim. It put the prevalence of forged currency in Nigeria from January to December 2016 at less than one percent (0.0014) or 14 counterfeits out of one million bank notes.
Although it is not possible to eliminate fake currency in a country’s monetary system, the CBN must work towards reducing the rate of forged currency in the country. Mailafia claimed that the rate is 20 percent while the CBN said it is below one percent. The true position should be located somewhere between the figures claimed by Mailafia and the CBN. What is incontrovertible is that counterfeiting is bad for the economy and should not be tolerated.
We, however, believe that the CBN is in a better position to know the volume of currency in circulation in the country. It should also know the number of forged naira notes in the system, as well as what is required to flush them out.
All the same, Mailafia’s claim calls for serious concern. It should not be dismissed with a wave of the hand. The allegation requires close scrutiny in view of the deleterious effect of currency counterfeiting on the economy. The CBN should carry out a massive enlightenment campaign to educate the public on how to differentiate between genuine and forged naira notes. The people should also be enlightened on the need to formally hand over forged naira notes to the authorities. The campaign should be in English, Pidgin and local languages.
The security agents should also strive to apprehend the persons responsible for the proliferation of fake currency in Nigeria. It is important to prosecute the criminals with a view to punishing them in accordance with the laws of the land.
All cases of currency counterfeiting in the country should be properly investigated. We call on security agents at the nation’s seaports and land borders to also increase their vigilance to ensure that unscrupulous individuals do not import fake currency into the country.
The CBN should also strive to mop up all forged naira notes in our monetary system to avert the danger they pose to the economy. Mopping up of fake currency should be a continuous exercise. Commercial bank workers should be well trained on how to detect fake currency and mandated to report all cases of fake naira notes to the CBN.
Above all, the CBN should improve the security features in all naira notes, especially the N1000 denomination, which holds great attraction for currency forgers. It will be recalled that the police authorities in Maiduguri, Borno State, recently arrested a syndicate that specialises in the production and circulation of fake Nigerian currencies in the state.
According to the police, a member of the syndicate was caught with N4.5 million worth of fake currency in crispy N1000 notes. Therefore, the fight to rid our monetary system of fake naira notes must be vigorous and handled with all the seriousness it deserves.
