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The Central Bank of Nigeria has dismissed recent allegations that up to 20 per cent of the naira notes in circulation are counterfeit. The apex bank said in a statement released today that only less than one per cent of bank notes in circulation can be considered to be counterfeit.

On Monday, Obadiah Mailafia, a former Deputy Governor of the CBN, alleged that up to 20 per cent of bank notes currently in circulation was counterfeit. Mailafa made his claims while delivering a lecture at the public hearing on the 2017 budget at the National Assembly in Abuja.

“While we acknowledge that no currency in the world is immune from counterfeiting, we make bold to state that the rate of counterfeiting in Nigeria has been very minimal due to appropriate policies put in place by the Bank,” the apex bank said. “Indeed, our records at the Bank clearly indicate that the prevalence of counterfeit notes in Nigeria from January to December 2016 was less than one percent (0.0014%) or 14 counterfeit pieces out of one million bank notes.”

The CBN said it has combatted counterfeit naira notes by using strong security features on new currency as well as embarking on nationwide campaigns to provide information to Nigerians on how to easily identity fake notes. Given these efforts, the apex bank said it was appalled that a former high-ranking CBN official would make unsubstantiated claims that could destroy confidence in the naira and sabotage government efforts aimed at ensuring stability of the financial system.

“The unfortunate implication of the fabricated claim of the said former official of the Bank, is that it gives the false impression that two bills out of every ten Naira pieces held by an individual is ‘fake’,” the apex bank said. “We therefore challenge the said former CBN official to make public the empirical evidence suggesting that 20 per cent Naira currency in circulation is fake.”

The CBN said it remains committed to safeguarding the value of the naira and ensuring that banknotes are not susceptible to counterfeiting.

“We also work constantly with relevant security agencies to monitor and check the activities of counterfeiters,” the apex bank said. “Members of the public are therefore advised to disregard the false alarm raised by the said former CBN official, be wary of the activities of counterfeiters and report any case of counterfeiting to the police and their banks.”