CBN Redesigns Naira, To Phase-out Old Notes Jan 31

BY CHIKA OKEKE, Abuja

In a bid to curb counterfeit, the Central Bank of Nigeria (CBN) has redesigned the Naira notes, expected to be released to the publics by December 15, 2022.

This is even as the new and existing currencies would circulate together until January 31, 2023, being the deadline for the phase-out of old notes. 

 Governor of CBN, Godwin Emefiele, who disclosed this at a press conference in Abuja on Wednesday, said that the redesigned notes include: N100, N200, N500, and N1000.

He was worried that about 85 per cent of the currency in circulation were hoarded by Nigerians, adding that the redesigned denominations would curtail counterfeit and ramson payment to terrorists and kidnappers.

According to him, "Although global best practice is for central banks to redesign, produce and circulate new local legal tender every five to eight 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,” he added.

Emefiele enjoined all commercial banks in possession of the affected denominations to return them to the bank immediately, adding that the newly designed currency would be released to the banks in the order of first-come-first- serve basis. 

He governor added, “Customers of banks are enjoined to begin the payment of the existing currencies into their bank accounts to enable them withdraw the new banknotes once circulation begins in mid-December 2022."

“All banks are therefore expected to keep their currency processing centers open from Monday to Saturday so as to accommodate all cash that will be returned by their customers.”

“We would like to use this opportunity to reassure the general public that the CBN will continue to monitor both the financial system in particular, and the economy in general, and always act in good faith for the achievement of the bank’s objectives and the betterment of the country,” he concluded.