President Muhammadu Buhari has extended the deadline for the exchange of old naira notes to Friday, February 10, 2023.
This is even as the President also approved a seven-day grace period beginning from February 10 to 17, in compliance with Sections 20 (3) and 22 of Central Bank of Nigeria (CBN) Act.
He noted that the grace period would enable Nigerians to deposit their old notes at the CBN after the February deadline.
With the latest development, the initial deadline of January 31 as announced by the CBN to phase-out old notes would no longer be feasible.
Buhari gave the approval on Sunday at a meeting with the Governor of the CBN, Mr Godwin Emefiele in Daura, Katsina State.
A statement by the President’s spokesman, Mr Femi Adesina, revealed that the extension would enable Nigerians to successfully change their currencies to the redesigned notes, and reduce the risk of loss, especially among the underserved in rural areas.
Briefing newsmen after the meeting, the CBN governor stated that the currency swap had achieved more than 75 per cent success rate, as the sum of N2.7 trillion was held permanently in people’s homes.
He noted that the achievement was visible given the drop in inflation, stability of foreign exchange rates and impact on security, especially in banditry and kidnapping figures.
The CBN governor noted that naira redesign is supposed to take place in every five to eight years.
He thanked the President for the opportunity to redesign new currency, adding that the bank was not privileged to embark on such programme in the last 19 years.
“Our aim is mainly to make Monetary Policy Decisions more efficacious and as you can see; we have started to see inflation trending downwards and exchange rates relatively stable.
“Secondly, we aim to support the efforts of our security agencies in combating banditry and ransom taking in Nigeria through this programme and we see that the military are making good progress in this important task,” he added.
Emefiele disclosed that the currency in circulation in 2015 was only N1.4 trillion, while as at October 2022, the currency in circulation rose to N3.23 trillion, out of which only N500 billion was within the banking industry.
“Ordinarily, when CBN releases currency into circulation, it is meant to be used and after effluxion of time, it returns to the CBN, thereby keeping the volume of currency in circulation under the firm control of the CBN.
“So far and since commencement of this programme, we have collected about N1.9 trillion; leaving us with about N900 billion (N500 billion + N1.9 trillion),” the CBN governor added.
He hinted that the CBN tas taken cogent steps to achieve effective distribution of the new currency by holding several meetings with Deposit Money Banks (DMBs).
The CBN governor stated that the DBMs were provided with Guidance Notes on processes they must adopt in the collection of old notes and distribution of the new notes, including directives that new notes should be loaded in ATMs nationwide for equitable and transparent mechanism.
He informed that the CBN also partnered with the print and broadcast media as well as the National Orientation Agency (NOA) for the sensitisation of Nigerians.
Emefiele noted that 30,000 Super Agents were deployed nationwide, particularly in rural areas and regions underserved by banks to enable them reach the weak and vulnerable for currency swap.
He maintained that CBN staff mostly Assistant Directors, Deputy Directors and Directors in Abuja were sent to all its branches nationwide to join the mass mobilisation campaign and monitoring programmes.
The governor stated that breaches recorded during the programme had been reported to the Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices Commission (ICPC) for further action.
“Aside from those holding illicit/stolen naira in their homes for speculative purposes, we do aim to give all Nigerians that have naira legitimately earned and trapped, the opportunity to deposit their legitimately trapped monies at the CBN for exchange", he said.
Fielding questions from newsmen, the CBN governor noted that the excuse of security threats canvassed by the Kano State Governor, Abdullahi Ganduje, had no bearing on the swap, which had achieved compliance and recorded huge success across the country.
He said that he was not conversant with the relationship between the CBN policy and security challenges in Kano state.
Emefiele confirmed that all new currencies contain security features for easy tracking in bank branches, adding that the process had exposed defaulters and those who breached the programme.
He disclosed that even if the defaulterx are CBN staff, that they would be sanctioned.
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