There Are Over 20% Fake Currency Circulating In Nigeria-Ex-Deputy CBN Governor Warns

Dr. Obadiah Mailafia, a former Deputy Governor of Central Bank of Nigeria has announced that Nigeria has 20 percent fake currency in various denominations circulating all around the nation.

The Ex-CBN Deputy Governor disclosed this at a public hearing on 2017 budget proposals organized by Joint Committee on Public Appropriation at the National Assembly in Abuja.

Analyzing the effectiveness of the 2017 budget, he warned that, it may take the Nigeria longer than necessary to come out of the recess, noting that it also had high interest rate element

“The fake currencies circulating means that they are not officially captured for monetary policies and its high interest rates could elongate recession period”, he said.

In his paper presentation titled: “Public Finance in the Context of Economic Recession: Innovative Options”, he said: “It was saddening that the concerned authorities appear to be oblivious of the gravity of fake currency circulation which he noted was highly detrimental to the growth of the economy.”

“When fake currencies of that magnitude circulate, original currencies become scarce, he said, noting that “bad money chase away good money”.

Attributing the current recession to several factors, Mailafia maintained that Naira also became weak due to gap in public policies.

Other factors he listed were poor banking practices, stock market crisis, speculations, regulatory failure, corruption and fraud and weak macro-economic management, while urging Executive and legislative arms of government to stimulate the economy.