REPORT OF THE 2019 ANNUAL BRANCH CONTROLLERS’ CONFERENCE HELD

AT PARK INN BY RADISSI0N HOTEL, ABEOKUTA FROM 22ND - 24TH AUGUST, 2019

Introduction: The Theme of the Conference is “The Role of CBN Branch in National
Development”
The papers presented were about (12) twelve with the following headings:
 Upstanding the CBN Governor’s five year Policy Thrust (2019-2024)
 CBN Branches as a Catalyst for National Financial Inclusion Strategy
Implementation (NFISI)
 The National Financial Inclusion Strategy Implementation: Branch Experience
 Leveraging on CBN Branch Network in Deepening Financial Literacy and
Consumer Protection.
 Utilizing CBN Branch Structure in creating awareness on Cashless Initiatives and
Payment Channels
 People, Culture and the Clean Notes Policy
 Effective Implementation of Clean Notes Policy at the CBN Branches for
Economic Development: Branch perspective
 The Role of CBN Branches in the Implementation of Intervention Initiatives
 The Role of CBN Branches in the Implementation of Intervention Initiatives:
Branch perspective
 Conducting Successful Elections in Nigeria: The Contribution of CBN Branches
 Excellent Service Delivery: Branch Operations Department’s Expectation of the
Branches
 Healthy Life Style

4. Leveraging on CBN Branch Network in Deepening Financial Literacy and Consumer

Protection being a paper presented by Ademola Atanda a representative of the Director,
Consumer Protection Department.
The facilitator introduced the topic and stated that those who were formerly excluded as regard
to financial literacy had now been included through various advocacies, public enlightenments
and this was the rationale behind the Department working consciously to protect customers
against any financial exploitation.

The Branches according to the presenter, are the front desks or the eyes of the Bank, therefore,
are the network in which the Department (CPD) deliberately want to use in deepening the
financial literacy in order to engender or entrench public confidence in the National financial
system. He added that, they will collaborate with the Branches to promote more engagements
and cooperation between CPD, CBN Branches and Consumers on Consumer Protection
initiatives.
He advocated, the need to include Financial Literacy in both primary and secondary schools
curriculum to create financial awareness programs amongst the children.

In conclusion, he conversed for collaboration between the Department and the Branches in order
to deepen Consumer Protection & Financial Literacy initiatives that would enable a wider reach
to the grassroots and also help guarantee the future economic and social well-being of Nigeria
through improved income - facilitating development, addressing socio-economic challenges,
ensuring financial system stability, sustainable economic growth and ultimately national
development.

5. UTILIZING CBN BRANCH STRUCTURE IN CREATING AWARENESS ON

CASHLESS INITIATIVES AND PAYMENT CHANNELS. Presented by…
The paper highlighted the roles of Branches in creating awareness on cashless initiatives and
payment channels. The presenter, gave a brief introduction on the concept and explained that the
Nigerian Payments System has evolved over the years from a primitive (Barter) system through
various stages to the present stage of Electronic Payments System. He said, the last decade had
been most transformative in the development of the national payments system.
He explained that the push for developments in the payments system have been driven by a
desire to grow and digitize payments; improve efficiency, security, cost, convenience; and create
access to the financially excluded.

He further stretched, that the Branch being the front office of the Bank is closest and more
accessible to the people and serve as a veritable channel for the dissemination of information to
especially the unreached and underserved.
He said, this makes the Branches highly important as a point of contact to the public to seek
information on various policies of the Bank.

He stated, that the Bank staff at the Branches, therefore, have to be knowledgeable on payments
system issues and policies to enable them respond adequately to the public complaints and
enquiries.
He mentioned that there were initiatives that necessitated or that led to the implementation of
cashless policy. Mobile payments, Implementation and operations of the Nigeria Central Switch,
Interoperability of payments channels, Implementation of Instant Payment and the
Pronouncement by Federal Government to make all its payments electronic by 2009 gave
backing to cashless Policy Initiatives which commenced in Lagos in April, 2012.

The main thrust of the Cash-less Policy according to him was to reduce the high usage of cash,
moderate the cost of cash management and encourage the use of electronic payment channels.
He said, various policies were introduced such as daily withdrawal and lodgments limits, over-
the-counter 3rd party encashment, cash withdrawal limit and a host of others.
He concluded by saying that it was a huge success story because going by the statistics, the
Cash-Less Policy has delivered great gains, yet there are opportunities to take advantage of as
much as there are infrastructural challenges to be surmounted.
Meanwhile, the initiatives had maximized the full potential of new financial technologies in the
payments system, the CBN is striking balance in creating a supportive space for innovation,
while maintaining a robust regulatory framework. Adopting well thought out policies that can
promote both certainty for innovators and safety for consumers.
The Bank has therefore embarked on another journey to the future of payments with the
commencement of work on the development of the Payments System Vision 2030.

6. People, Culture and the Clean Notes Policy: Presented by …

The paper was briefly introduced by the presenter. He said the Central Bank of Nigeria, as part
of its mandate, issues and manages the legal tender currency in Nigeria from birth to death, such
that we have in circulation premium quality banknotes in the right denominational mix. The
Bank aims to ensure that only premium quality banknotes are in circulation nationwide and in
the right denominational mix.
To achieve this objective, the Bank collaborates with key industry stakeholders such as banknote
printers, Deposit Money Banks (DMBs), currency management companies, and the public.
The poor handling of the Naira by the public and other stakeholders has contributed to the
increasing cost of managing and replacing banknotes in circulation. She said although, there has
been tremendous improvement in electronic payments, the Nigeria economy is still
predominantly cash-based with currency-in-circulation (CIC) of 8.88 billion pieces valued N2.03
trillion as at end July, 2019.

The facilitator, highlighted what has been done so far in order to reduce huge cash in circulation
th
in the economy: the Committee of Governors, at its 312 meeting held on Wednesday,
th
13 March, 2013, approved the blueprint of the Nigerian Cash Management model.
She said, the approval was aimed at modernizing cash holding in Nigeria and pave a way for
CBN’s gradual exit from the retail to wholesale end of the cash management value chain.
This entailed the re-ordering of the value chain with clear separation of wholesale cash services
(CBN) and retail cash services (financial industry) supported by a single shared platform.

She mentioned that, Nigeria uses naira and kobo as currency and the structure of the Currency
are N1000, N500, N200, and N100 higher notes while the lower denominations are N50, N20,
N10 and N5 polymer substrate. Others are in coins N2, N1and 50k
She demonstrated bad and good ways naira could be handled, the hoarding or abuse (spray,
match, counterfeit, sell of the naira)
The paper presented other major challenges or the poor state of the national currency to be:
 Public handling of the Naira.
 CBN continued participation in the retail cash management value chain.
 Continued involvement of DMBs in retail cash management activities.
 Recirculation of unfit/banknotes.
 Rejection of unfit banknotes deposits by DMBs.
 Limited private sector investment.
 Poor national coverage of registered CIT/sorting companies.
 Lack of an integrated cash management platform

Explanation was given on Clean Note Policy of the Bank and what it entails from CBN side to
NSPM, DMBs, CIT/CPCs, Currency Equipment manufacturers, other cash handlers and the
public were geared towards the efficient circulation of premium quality banknotes.

Equally, the policy provides that the DMBs & Service Providers shall not issue unfit notes into
circulation if a banknote is
 Badly soiled or if there is a general distribution/localization of dirt
 Limp/rag appearance due to excessive folding that results in breakdown of the texture
and structure of the banknote.
 The banknote has added image or lettering marked on it.
 It has a hole that is more than 10mm
 There are other defects as enshrined in the policy.

The fitness guideline or banknotes level of fitness was given, 1-5 it is said to be the appropriate
level to be in circulation while 6-9 is unfit to be in circulation.
Monitoring for compliance, she said CBN does this periodically to gauge compliance with the
Clean Note Policy & Banknote Fitness Guidelines.

The way forward as suggested by the facilitator:

 CBN to commence gradual exit from the retail cash management ecosystem.
 Continuous public sensitization of the general public on the proper handling of the Naira.
 CBN to follow – up on prosecution of illegal sale/counterfeit suspects to a logical
conclusion.
 Proper monitoring of compliance by DMBs and other stakeholders to the Bank’s policies.
The presenter concluded that Currency Management is a collaborative venture, in this regard,
all stakeholders i.e. CBN Branches, Deposit Money Banks, Merchant Banks, Microfinance
Banks, Government agencies, Security agencies, Cash-In-Transit, Currency management
companies, Market Associations, Merchants/Retailers, Bank customers, public and others, must
partner one another to ensure circulation of good quality banknotes.
HIGHLIGHTS OF THE ISSUES, COMMENTS AND OBSERVATIONS: Leveraging on
CBN Branch Network in Deepening Financial Literacy and Consumer Protection being the
presented by Ademola Atanda a representative of Director, Consumer Protection
Department.
 Those who were formally excluded as regard to financial literacy had now been included
 Deepening the financial literacy in order to engender public confidence in the financial
system
 Advocacy for Financial Literacy in the schools and as well as serving as financial
intelligent officers reporting unscrupulous or illegal microfinance banks
 Collaboration between the Department and the Branches that would deepen Consumer
Protection initiatives

ANSWERS:

 To create financial awareness programs amongst the Public.

 Promote more engagements and cooperation between CPD, CBN Branches and
Consumers on Consumer Protection initiatives
 Ensuring financial system stability, sustainable economic growth and ultimately national
development.

HIGHLIGHTS OF THE ISSUES, COMMENTS AND OBSERVATIONS: CREATING

AWARENESS ON CASHLESS INITIATIVES AND PAYMENT CHANNELS

- Roles the Branches need to play in creating awareness on cashless initiatives and
payment channels.
- A desire to grow and digitize payments
- Veritable channel for the dissemination of information; especially the unreached and
underserved
- To be knowledgeable on payments system issues and policies to enable Branches respond
adequately to the public complaints and inquiries.

ANSWERS:

- There have been transformative in the development of the national payments system
through the Branch network.
- There is in place improve efficiency, security, cost, convenience and an access to the
financially excluded in the last decade
 - The Branch represent the Bank to the public in all states and a point of contact to the
public to seek information on policies of the Bank
- Adopting well thought out policies that can promote both certainty for innovators and
safety for consumers.

HIGHLIGHTS OF THE ISSUES, COMMENTS AND OBSERVATIONS: People, Culture

and the Clean Notes Policy

o Issues and manages the legal tender currency in Nigeria from birth to death
o Cash-less policy initiatives
o Clean notes policy
o The fitness guidelines

ANSWERS
o To ensure that only premium quality banknotes are in circulation nationwide in the right
denominational mix.
o Cash holding in Nigeria pave a way for CBN’s gradual exit from the retail to wholesale
end of the cash management value chain.
o The policy is geared towards the efficient circulation of premium quality banknotes.
o CBN do periodical monitoring to gauge compliance with the Clean Note Policy &
Banknote Fitness Guidelines.