The Central Bank of Nigeria’s (CBN) move to redesign and reissue the N200, N500, and N1000 notes have been welcomed with diverse reactions by the citizens of Nigeria.
This move by the apex bank has caused quite a controversy between analysts, experts, and stakeholders as some individuals think it is commendable and a few others believe that this is happening at the wrong time.
Amongst those that welcomed the idea was the Secretary General of the Conference of Nigeria Political Parties (CNPP), Chief Willy Ezugwu, he commended the actions of the CBN, saying only politicians who have plans to buy votes and ill-motivated individuals would hate CBN’s action.
Similarly, the former President of Governing Council of the Association of Corporate Treasures of Nigeria (ACTN), Mr. Zeal Akaraiwe said that the decision of the CBN was the answer needed to wade in huge amounts of cash into the banking system while enhancing the effectiveness of CBN’s Monetary policies.
The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa, described the plan by CBN to redesign some of the Naira notes as a welcome development.
However, among the few others who criticized the move was Economic expert, Emeka Okengu, who argued that the timing was wrong.
With respect to the CBN’s claim of curbing currency counterfeiting as one of its reason, Okengu said counterfeiting doesn’t stop by just changing the currency; it can only be addressed by tracking and arresting those involved.
Similarly, security expert, Senator Iroegbu, questioning the decision said, from afar, the reason for the change seems genuine but a deeper look makes the whole decision unbelievable and staged, adding that this would only affect the poor masses.
Also, a political economist, Mr. Adakole Ijogi disclosed that the timing of the apex bank was wrong as it would disrupt the economy, and would put unnecessary pressure on businesses as well as affect the forthcoming 2023 general election.
In addition, the Executive Director of the Civil Society Legislative Advocacy Centre (CSLAC), Auwal Musa said that the plan to redesign the Naira notes is not deemed an economic priority considering the present economic situation the country is facing, adding that, the CBN ought to channel that energy into reviving the economy.
He said “Firstly, the CBN’s decision to redesign and reissue new 200, 500, and 1000 notes is not an economic priority and barely a solution to addressing Nigeria’s poor monetary policy challenges and growing economic woes.
“Especially at a time when the country is grappling with huge fiscal deficits, a free fall of the naira, soaring inflation rates, multiple forex rates, and rising borrowing costs. The reasons for this decision seem no different from those given for the forex demand management strategy which resulted in a non-satisfactory conclusion as the artificially low exchange rate failed to be as reflective of the market as possible to improve supply, but this time it only threatens damning economic consequences for Nigerians.”
CBN Will Redesign Naira Notes Every Five to Eight Years; Say Emefiele
The central bank will henceforth redesign the nation’s legal tender every five to eight years
Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele has said the bank will henceforth redesign the nation’s legal tender every five to eight years.
The apex bank governor revealed at the unveiling of the new naira notes on Tuesday.
Godwin Emefiele explained that the naira redesign is in line with global best practice noting that the naira needed to be redesigned and re-issued every five to eight years.
According to the CBN governor, previous administrations lacked the political will to approve the redesign of the naira notes. Stating that it is regrettable that the naira has not been redesigned for the past 19 years.
“In the past, I have to confess that attempts by the CBN to redesign and re-issue the naira notes have been resisted. It is only President Muhammadu Buhari that has exhibited the courage to do so,” the CBN governor stated.
Emefiele added that going forward, naira notes will be redesigned at intervals to address some peculiar issues.
“After today, the CBN will begin to redesign and reissue the naira every five to eight years,” he said.
Investors King had earlier reported that President Muhammadu Buhari unveiled the redesigned naira notes at the Federal Executive Council (FEC) meeting today.
Among those who joined the president with the unveiling include the CBN governor and the EFCC chairman.
Recall, in October, the CBN announced it will redesign the N200, N500 and N1,000 notes in line with its mandate.
Meanwhile, the CBN governor has disclosed that the new naira notes can not be counterfeited because of the features embedded in them.
Similarly, he added that security agencies would be monitoring people making withdrawals at the counter to sniff out money laundering and unravel illegal usage.
“The CBN has moved to a cashless economy. We will restrain the volume of cash someone will withdraw over the counter. We will follow up with the person’s data to know the reason for such withdrawal,” he concluded.
President Buhari Unveils New Redesigned Naira Notes, See Pictures
Buhari launched the new naira notes as the CBN forges ahead with redesign plans.
President Muhammadu Buhari on Wednesday unveiled the new redesigned Naira notes at the State House in Abuja following a series of sensitisation to ensure that Nigerians are aware of the deadline for the old notes.
Godwin Emefiele, the governor of the Central Bank of Nigeria, who was also present at the launching explained that the redesigned notes would help curb counterfeit, reduce hoarding and support the apex bank’s cashless policy.
Earlier in October, the central bank announced it was redesigning the N200, N500 and N1,000 notes in line with its mandate. The apex bank further stated that the newly redesigned notes would be available on December 15, 2022.
However, Emefiele later announced the central bank won’t wait until December 15th before unveiling the new notes on November 2023.
He said, “100 days is enough for any person from any part of Nigeria to deposit his money in the bank and get his money when the new notes are released.
“For information, indeed, we are no longer waiting till December 15th to unveil and begin to release the new notes.
“By the special grace of God, tomorrow, which is the 23rd of November 2022, the President has graciously accepted to unveil the new currencies and the new currencies will be unveiled tomorrow at the Federal Executive Chamber by 10am.”
Meanwhile, the central bank-led monetary policy committee raised interest rates by another 100 basis points from 15.5% to 16.5%. Bringing the total increase in 2022 to 500 basis points despite the challenges Nigerians are facing amid weak job creation and poor earnings.
The committee claimed the decision was based on the rising inflation rate that rose to 21.09% in October. However, given Nigeria’s economic structure and current situation, the persistent increase was mainly to lure foreign investors to invest in the economy against the developed economies that are equally raising rates to curb escalating inflation.
President Buhari to Launch New Naira Notes Today
CBN says Buhari is expected to introduce redesigned naira notes to the public today at the Federal Executive Council (FEC) meeting in Abuja.
Nigerian President, Muhammadu Buhari is expected to launch the redesigned naira notes today at the Federal Executive Council (FEC) meeting in Abuja.
The launch will precede the circulation of the affected currency which is billed for December 15, 2022. The FEC meeting is a weekly (Wednesday) meeting of the executive arm of government often presided over by the President or the Vice President.
The Central Bank Governor, Godwin Emefiele disclosed on the sidelines of the Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday, that the new naira notes will be displayed for public view on Wednesday.
Therefore, the governor added that the CBN will not shift its deadline for all old notes to be returned to commercial banks in exchange for newly designed ones.
Investors King recalls that in October 2022, the central bank announced it will issue redesigned N200, N500, and N1,000 notes, effective December 15, 2022, while the new and existing currencies will remain legal tender and circulate together until January 31, 2023.
However, in a sudden change of schedule, the CBN governor noted that the unveiling will be done by the president today stating that the bank will no longer wait till December 15th to unveil and begin to release the new notes.
” By the special grace of God, tomorrow, (today) which is the 23rd of November 2022, the President has graciously accepted to unveil the new currencies and the new currencies will be unveiled tomorrow at the Federal Executive Chamber by 10am.” Emefiele started.
Meanwhile, the Monetary Policy Committee (MPC) which is the highest decision-making body for any issues related to Nigerian monetary policy has hiked the interest rates from 15.5 percent to 16.5 percent.
According to CBN, the hike in interest rate is to curtain inflation and maintain economic stability.
Speaking at the end of a two-day Monetary Policy Committee meeting yesterday, the CBN governor noted that the MPC voted to retain the cash reserve ratio at 32.5 percent and the liquidity ratio at 30 percent.
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