Determination, issuance and distribution of currency in Nigeria.

Abstract

The purpose of this paper is to examine and discuss the subject of the 'Determination of Currency Supply and its Distribution in Nigeria'. Put in a more comprehensive sense, the paper will attempt to explain the procedures and processes involved in the determination of the volume and value of currency required to service the Nigerian economy and its distribution. The discussion will inevitably lead us into the issue of the determination of the structure of the currency which is of paramount importance in the overall currency management. It is not going to be a lengthy paper as it is essentially a factual account of an on-going activity. For convenience, the paper is made up of four parts. It shall begin with a brief discussion about currency itself, including some highlights on the historical evolution of the Nigerian currency from the mid-1940s to the present day. The second part focuses on the determination of the volume, value and structure of the currency, while the issue of distributing the currency to where it is needed is the subject matter of part III. The concluding fourth part touches on some new thoughts and ideas as well as the prospects for the future.