The Central Bank of Nigeria (CBN) has decided to redesign, produce and circulate new currency notes, effective, December 15, 2022, reports ITREALMS.
He said, CBN has sought and obtained the approval of Mr. President, General Muhammadu Buhari, retired, to redesign, produce and circulate new currency notes of N100, N200, N500, and N1000, beginning from Thursday, December 15, this year.
“However, the new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall cease to be legal tender,” Emefiele declared.
Currency management, he said, has faced several daunting challenges that have continued to grow in scale and sophistication with attendant and unintended consequences for the integrity of both the CBN and the country.
He highlighted some of the challenges to include hoarding of banknotes by members of the public.
“Over 80 per cent of currency in circulation are outside the vaults of commercial banks, 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.
“Indeed, recent development in photographic technology and advancements in printing devices have made counterfeiting relatively easier,” he lamented.
Emefiele pointed out that in recent years, CBN has recorded significantly higher rates of counterfeiting, especially at the higher denominations of N500 and N1000 banknotes.
He maintained that global best practice is for central banks to redesign, produce and circulate new local legal tender between five and eight (5–8) years, stressing that Naira has not been redesigned in the last 20 years.
The CBN boss charged customers of banks to begin paying into their bank accounts the existing currency to enable them withdraw the new banknotes once circulation begins.
Additionally, CBN directed all Deposit Money Banks (DMBs), to suspend with immediate effect all bank charges for cash deposits.
“DMBs are to note that no bank customer shall bear any charges for cash returned/paid into their accounts,” he asserted, advising banks immediately commence return of banknotes back to CBN.
Further, Emefiele urged banks to keep their currency processing centers open from Monday to Saturday in order to accommodate all cash that will be returned by customers.
Chuks Egbune/Editor
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