By Munachimso Obienyi
The Central Bank of Nigeria (CBN) is set to redesign the N200, N500, N1000 notes as requested by the Federal Government.
This was disclosed by the CBN Governor, Godwin Emefiele during a special briefing on Wednesday.
Emefiele noted that the CBN has been experiencing persistent concerns as regards the management of the country’s current series of banknotes, and currency in circulation, particularly those outside the banking system in Nigeria, adding that currency management is a key function of the CBN, as enshrined in Section 2 (b) of the CBN Act 2007.
According to him, there have been 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.
“In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 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. In line with this approval, we have finalized arrangements for the new currency to begin circulation from December 15, 2022. The new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall seize to be legal tender”, He stated.
Emefiele further stated that all Deposit Money Banks (DMBs) currently holding the existing denominations of the currency may begin returning these notes back to the CBN effective immediately and added that the newly designed currency will be released to the banks in the order of First-come-First-serve basis.
