The Central Bank of Nigeria (CBN) announced that it would outsource some non-core processes of currency management including currency distribution and processing. The CBN clarified that the bank's new policy direction would not lead to closure of its currency processing offices.
CBN Deputy Governor of Policy, Obadiah Mailafia said that outsourcing forms part of its reforms process, whereby the bank repositions itself to provide efficient services on its core services of issuance and management of the national currency.
The newspaper Thisday quoted Mailafia as saying that CBN is exploring several options for outsourcing the non-core activities. CBN has invited private sector firms to explore the opportunities in currency distribution and processing.
Mailafia noted that the growing use of automated teller machines (ATMs) to facilitate cash payments has resulted in making investment in cash processing and automation very crucial, as ATMs require a minimum quality of banknotes for dispensing.
Mailafia further said that CBN has invested and is still investing resources in currency management, but without commensurable yields and therefore CBN feels the need for a re-appraisal in order to derive maximum benefits.