The Central Bank of Nigeria (CBN) moves to introduce new designs of N200, N500, and N1000 notes by December 15, 2022, following approval from President Muhammadu Buhari.
The Central Bank Governor, Godwin Emefiele made this known at Abuja on Wednesday during a press meeting.
According to the CBN Governor, the global practice requires central banks to redesign, produce and circulate new local currency every five years, meanwhile, the Nigerian Naira has not been redesigned in the last twenty years.
Emefiele, with respect to the distribution of the new Naira notes, said the Commercial Banks would receive the new designs of the new Naira notes on a first come first serve basis, the CBN governor urged the public to return existing currency into their bank accounts, informing banks to suspend Bank charges for cash Deposits with immediate effects, adding that the existing notes would be invalid and not be regarded as legal tender by January 31, 2023.
He said it is of great worry that Nigerians presently hoard 85% of the currency in circulation outside the commercial banking system, adding that the soon-to-be-released Naira notes would reduce the frequency of the counterfeit notes.
However, the CBN Governor said that currency circulation has doubled and in September 2022, 2.7 trillion out of the 3.32 trillion was outside the commercial bank and this can’t be allowed.
Bode Ososami, a Business Analyst expressed his opinion in regards to the new Naira Notes said, the Federal Government’s plan to introduce new designs of the Naira notes will be helpful in reducing the illegal counterfeit roaming around, adding that, the move is sanitation that is long overdue with diverse advantages attached to it and it will appreciate the currency.
Bode stated that the only disadvantage of the move is the logistics and cost it would incur on the CBN. However, the bottom line is that it is an opportunity to digitalize the economy, the more digitalized, the more efficient the economy will be if it is properly applied.
