The Mint will print 700 million Nigerian banknotes

The Mint will resume operations of its machines after securing an international contract to produce around 700 million banknotes for Nigeria, an agreement that will allow the use of the installed capacity that had remained idle following the discreet issuance policy of Javier Milei and the loss of the main printing contracts with the Central Bank.

The operation involves the manufacturing of naira, the legal tender of the African country, and will be carried out under a contract manufacturing model. Through this scheme, the Mint will provide its facilities, machinery, and labor, while the contracting company will supply the raw materials, designs, and technical specifications necessary for production.

The contract arose from the printing commitments made by De La Rue, the historic British company specialized in banknote manufacturing. The firm maintains commercial ties with the Central Bank of Nigeria and decided to divert part of its production to the available installed capacity in Argentina.

Negotiations began months ago when the idle capacity of Argentine plants started to attract interest within the international monetary printing industry. After a series of contacts and a visit from British technicians, the parties moved forward with the agreement that will keep the machines running for an estimated period of a year and a half, with the possibility of extending the activity up to two years.

The production will be aimed at meeting the monetary demand of Nigeria, which in recent years has faced serious problems in executing the replacement of its banknotes. Between 2022 and 2023, the African country pushed for a renewal of the 200, 500, and 1,000 naira denominations, but logistical difficulties and a lack of cash led to a deep crisis that ultimately forced the extension of the validity of the previous banknotes.

The new contract comes after the deep restructuring of the Mint during Javier Milei's administration. In 2024, the Central Bank partially rescinded the production contracts it had with the state company and moved forward with international suppliers for the printing of Argentine banknotes.

The decision responded to a different contracting scheme promoted by the monetary authority. The agreements that had been rescinded represented more than 90% of the Mint's income as of December 2023, a dependency that exposed the fragility of the operational model that the company had been carrying.

Now, the state printer has found a new source of activity through an international contract that will allow it to utilize facilities and equipment that had remained underutilized. Meanwhile, the Government continues to evaluate the future of the company within its privatization program.