Let’s talk about Banknote Handling Practices

Many Nigerians are not aware that there are regulations in handling of banknotes; these regulations are not only in existence, they are also backed by law. And because ignorance is not an excuse in law, it is important that people know about banknote handling practices.

Why is the naira so important that there are rules on its handling? The naira, which is Nigeria’s bank notes and legal tender, is the symbol of our national pride and their condition in circulation reflects who we are.

Indeed, the Central Bank of Nigeria encourages the public to adopt responsible banknote handling practices to preserve the quality of the naira and also enhance the lifespan of the Naira.

What constitute good Banknote Handling Practices? They are simple guidelines stated below:

Do not store the Naira indecently: Keep banknotes clean, flat and avoid folding, crumpling or stapling.

Do not write on the Naira: Avoid writing on banknotes.

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Do not squeeze the Naira: Store in a wallet, Purse or Pouch.

Do not deface the Naira: Avoid exposing banknotes to liquids like water, oil etc.

Do not spray the Naira: Give cash gifts in envelopes or via electronic channels.

Flouting any of the guidelines listed is a punishable offence under the law. Under the provisions of Section 21 of the CBN Act, 2007, all acts that constitute Naira abuse are punishable by imprisonment for a term of not less than six months or a fine not less than N50,000 or both.

The offences captured by the Act include:

Spraying of, dancing on or matching or stepping on the naira: This is explicitly prohibited and constitutes an offense.

Selling or trading naira notes and coins: This refers to the act of selling banknotes or coins for a higher value than their face value, which is illegal.

Mutilation, defacement or soiling the naira: This covers any act of intentionally damaging, writing on, or defacing naira notes or coins, including stapling, tearing or excessive crumpling.

To make it easy to keep the rules; e-payment channels offer a convenient and secure alternative to cash for transactions; use mobile money, mobile banking, internet banking, POS or card payments to keep our currency in good condition.