It came as a surprise when Nigerians learnt that the Central Bank of Nigeria, CBN, revealed plans to release new naira notes design different from the nation’s present currency denominations.
On Wednesday, citizens learnt that the apex bank’s Governor, Godwin Emefiele, made some remarks on “THE ISSUANCE OF NEW NAIRA BANKNOTES.”
For some reason, the Government seemed to have motives why they decided to redesign the banknotes as the CBN Governor, in his address, identified persisting concerns the country is facing with “the management of our current series of banknotes, and currency in circulation, particularly those outside the banking system in Nigeria.
Highlights of Naira Banknotes to be Reviewed
1. CBN will change the current N200, N500 and N1,000 currency denominations to a new currency.
2. Everyone should start paying the old currency notes into the bank effective immediately.
3. The new currency notes will go into circulation on December 15th, 2022.
4. Collection of the old notes will stop on January 31st, 2023.
5. The old notes would stop being legal tender by January 31st, 2023.
6. Banks are advised to keep all their deposit centres open from Monday to Saturday going forward for collections.
The above are key points that show how soon the Emefiele-led central bank administration hopes to implement the new mandate.
Here are 5 Reasons why CBN Would Print New Naira Notes
- Currency Management is the first consideration that brought concerns to the apex bank as it revealed the task had suffered a major setback. According to Emefiele, in recent times, currency management has faced several daunting challenges that have continued to grow in scale and sophistication with attendant and unintended consequences for the integrity of Both CBN and Nigeria;
- Significant Boarding of Banknotes by members of the public, with statistics showing that over 80 per cent of the currency in circulation is outside the vaults of commercial banks;
- Worsening Shortage of Clean and Fit Banknotes with an attendant negative perception of the CBN and increased risk to financial stability;
- There’s the Increasing Ease and Risk of Counterfeiting evidenced by several security reports. Indeed, recent development in photographic technology and advancements in printing devices have made counterfeiting relatively easier.
- To Curtail the Existing Illegal Sales of the Nigerian Currency, and help the naira regain its place in the global financial sector
Just as indicated earlier, it is paramount to note that “All banks are therefore expected to keep open, their currency processing centres from Monday to Saturday to accommodate all cash that will be returned by their customers.” Emefiele declared.
