THE Central Bank of Nigeria (CBN) implemented the Clean Note Policy as a comprehensive framework to regulate the production, issuance, and circulation of banknotes.
This policy was designed to maintain the integrity, quality, and widespread acceptance of the Naira while promoting efficient currency management.
The policy is centered on combating the mishandling and abuse of Naira banknotes, which undermine their physical durability and increase the cost of replacing damaged currency. Through public awareness campaigns, the CBN aims to foster a culture of responsible currency handling among citizens and curb harmful practices that shorten the lifespan of banknotes.
The Naira and kobo laws, as outlined in the CBN Act, provide a legal foundation for currency management and establish penalties for offenses involving the Naira. Key sections of the Act . The CBN is solely authorized to issue Naira and kobo notes (Sections 17, 18, and 19 of the Act).
Counterfeiting
Counterfeiting Naira notes is a severe offense punishable by up to five years of imprisonment without the option of a fine (Section 20).
Spraying Banknotes
Practices such as spraying or scribbling on banknotes at social events are prohibited under Section 21 of the Act, with violators subject to legal penalties.
Defacement
Actions like stapling, tearing, soiling, or staining banknotes are considered defacement and are punishable offenses under Section 21.
Sale of Currency
The sale, trade, or hawking of Naira notes and coins is strictly forbidden by Section 21(4) of the Act.
Mutilation
Mutilating banknotes, defined as damage exceeding half the note’s original size, is another prohibited act. Whether caused by fire, flooding, or intentional tampering, such damage is deemed detrimental to the nation’s monetary system and penalized accordingly.