By Ijeoma Nwankpa, Abuja
Emefiele
The Central Bank of Nigeria, CBN, has introduced a newly designed naira notes of 200, 500 and 1000 to be implemented by December 15.
The CBN Governor, Godwin Emefiele, disclosed this at a news briefing at the CBN headquarters, Abuja.
According to the CBN Governor, the Circulation of the new naira will begin by December 15, 2022, while the old notes remain valid until January 31, 2023.
He therefore directs all holders of the currency notes to begin returning the notes to the banks immediately.
While he directs banks to suspend all charges for cash deposits immediately.
Explaining in detail, he said, ” In recent times, however, 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 the CBN and the country. These challenges primarily include:
▪ Significant hoarding of banknotes by members of
the public, with statistics showing that over 80
percent 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.
“In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations ofN500 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.
