The Central Bank of Nigeria (CBN) has announced the re-designing of naira notes.
The affected notes included N100, N200, N500, and N1000.
The CBN Governor, Godwin Emefiele, made the announcement at a press briefing in Abuja on Wednesday.
Emefiele stated that the development followed the approval of President Muhammadu Buhari to redesign the new naira notes, adding that the new currency will begin circulation on December 15, 2022.
He, however, stated that the new and existing currencies would remain legal tender and circulate together until January 2023.
He added that the currency management recently faced several daunting challenges which he said have continued to grow in scale and sophistication with attendant and unintended consequences for the integrity of both the CBN and the country.
“These challenges primarily include significant hoarding of banknotes by members of the public, with statistics showing that over 80 per cent of currency in circulation are outside the vaults of commercial banks;
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“Worsening shortage of clean and fit banknotes with attendant negative perception of the CBN and increased risk to financial stability;
“Increasing ease and risk of counterfeiting evidenced by several security reports,” he added.
The CBN Governor, however, stated that the recent development in photographic technology and advancements in printing devices have made counterfeiting easier.
“In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes.
“Although global best practice is for central banks to redesign, produce, and circulate new local legal tender every 5–8 years, the naira has not been redesigned in the last 20 years.
“On the basis of these trends, problems, and facts, and in line with Sections 19, Subsections a and b of the CBN Act 2007, the management of the CBN sought and obtained the approval of President Muhammadu Buhari to redesign, produce, and circulate new series of banknotes at N100, N200, N500, and N1,000 levels.
“In line with this approval, we have finalised arrangements for the new currency to begin circulation from December 15, 2022. The new and existing currencies shall remain legal tender and circulate together until January 31, 2023, when the existing currencies shall seize to be legal tender,” Emefiele said.
He further urged Deposit Money Banks currently holding existing denominations to return them back to the CBN immediately, noting that the newly designed currencies will be released on the basis of “first come, first serve”.
“Customers of banks are enjoined to begin payment into their bank accounts to enable them withdraw the new banknotes once circulation begins in mid-December 2022,” the CBN Governor stated.
Emefiele, therefore, ordered the immediate suspension of bank charges for cash deposits to allow the return of all naira notes in circulation.
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