By December CBN will roll out the redesigned N200, N500 and N1,000 notes.
The Central Bank of Nigeria (CBN) has announced that newly redesigned currencies will start circulating from 15 Dec 2022 as it plans to redesign N200, N500 and N1,000 notes, with the current notes in circulation ceasing to be legal tender by the end of January 2023. CBN described the plan as a move to counter terrorism financing, hoarding of banknotes and to reduce the proliferating risk of counterfeiting. According to political pundits, the policy is intended to push politicians to release huge amounts of money they could have been holding into circulation as the country prepares to conduct a general election in February 2023.
Although some Nigerians loathe the policy, President Muhammad Buhari affirms it will be implemented. He affirms that no one will use resources and thugs to intimidate voters in any constituency during the election. CBN Governor Godwin Emefiele reported that over 85 per cent of banknotes in circulation were outside commercial bank vaults, indicating massive hoarding. He asserts that currency in circulation has more than quadrupled from 2015, from N1.46 trillion ($2.6 billion) in December 2015 to N3.23 trillion ($5.7 billion) in September 2022.
Existing currency will stop being legal tender by January.
Emefiele explained that the CBN is convinced that the reduction in access to large volumes of money outside the banking sector would help lessen incidents of terrorism and kidnapping. As technological advancements have made counterfeiting relatively easier, the CBN has recorded significantly higher rates of counterfeiting, especially at the higher denominations of N500 and N1, 000 banknotes. Furthermore, he said that with the transition from old notes to new banknotes, bank charges for cash deposits had been suspended with immediate effect.
New and existing naira notes will remain legal tender and circulate together until 31 Jan 2023, when the existing currencies will stop being legal tender. Banks currently holding the existing denominations of the currency are all expected to start returning the notes to the CBN with immediate effect, as the newly designed currency is said to be released to banks based on first-come-first-served. Also, bank customers are expected to start depositing the existing notes into their bank accounts to enable them to withdraw the new banknotes once circulation begins in mid-December 2022.
Some Nigerians feel happy about the notes redesign policy.
While Some Nigerians argue that the policy would positively impact the economy, others perceive it as a herald of hardships. Uche Uwaleke, the president of the Association of Capital Markets Academics of Nigeria (ACMAN), supports that the policy will be positive for the economy in the medium to long term. He said the policy would effectively ensure that a lot of naira notes circulating outside the banks are crowded in, even though the measure does not amount to the demonetization of high currency notes often carried out by central banks to curb black market money and corruption.
In addition, Mr. Mathew Ogagavworia, a forensic expert, has also lauded the planned currency redesigning policy. He believes that most of the money laundering is held in US dollars, in which this policy will also lead those holding illicit funds to change it to US dollars and allow the Bureaux de Change (CDCs) to move the naira to the banks since charges have now been lifted. Mr. Mathew asserts that as an immediate implication, the black-market rate of the dollar will drive up.
CNF express concerns over the redesigning of the currency.
The Economic and Financial Crimes Commission (EFCC) described the central bank’s policy as “a well-considered and timely response” to the challenges of currency management. Chairman of EFCC, Mr. Abdulrasheed Bawa, said with some other regulators in the financial sector, EFCC and CBN worked hand-in-hand to determine how best to stabilize the country’s monetary policy environment. Meanwhile, the non-governmental organization (NGO) leadership of Concern Northern Forum (CNF) plans to protest the suspension of the policy, which it believes will cost the country enormous sums of money at the expense of taxpayers and add no value to the current multiple economic challenges the nation is facing.
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If redesigning the notes will help improve the naira in anyway I am in total support I see no reason why some will haird money if not wickedness I just can’t understand this our so called politicians storing money somewhere just to use for their personal gain.
According to history anytime changing of Naira note occur there is always inflation,what I notice is politicians that stores money have a way of changing to those note without affecting them in any way is only the masses that will affect most because printing of this notes cause millions of Naira which can be utilise in another way.
I hope the new bank notes are well circulated enough. I want to see how it will help solve our economic problems. The government should also extend the deadlines of this new notes.
December CBN will roll out the redesigned N200, N500 and N1,000 notes. Changing of new note is never the problem of this country. nawa oo, this government self is something else.
It’s like our leaders don’t know what is next!… I want to see how the new bank notes will help solve our economic problems. I hope the new bank notes are well circulated enough and possibly into extension of the deadline of the new notes.
We must raise our voices in opposition to the policy’s suspension, which we feel would cost taxpayers a fortune without solving the nation’s myriad economic problems.
As the nation gets ready to host general elections, the policy’s goal is to encourage political figures to put into circulation large sums of money that they had the potential to hoard while the country was getting ready to vote.
It is encouraging that we have been given the assurance that during the election, no one will attempt to intimidate voters in any constituency by using resources or thugs.
Since the old banknotes were being replaced with new banknotes, the fees that banks typically impose for cash deposits have been put on hold with immediate effect.
this will result in significant costs for the country, which will be borne by taxpayers, and will contribute nothing of value to the various economic issues that the country is currently experiencing.
Change of our banknote should have been done since rich people keeping money at home that can’t even help people are now bring out money to save in bank keeping of money at home reduce the circulation flow of money in the country. Change of our note I hope it improve our currency
This practice is not the same as the demonetization of high currency notes that is frequently carried out by central banks in an effort to stem the flow of money into the black market and corruption.
I’m crossing my fingers that the new bank notes get adequate circulation. Specifically, I’m curious as to how this will aid in resolving our economic woes. In addition, the government should prolong the maturity dates of these new notes.
If we look into this policy well it will benefit the country and the economy in the long run as it will boost up circulation of currency in the market.
The fees that banks typically charge for cash deposits have been suspended immediately because the old banknotes were being replaced with new banknotes.
It’s my sincere wish that the new bills have plenty of use in circulation. I’m curious as to how it will aid in resolving our economic woes. The maturity dates of these new notes should likewise be extended by the government.
Although the rationale is not so clear yet, we are anticipating all that comes with it. Hopefully it positively impacts the economy as perceived.
There is nothing that don’t have advantages and disadvantages. The new Nigerian note curb somethings like hoarding of money and other illegal activities.
As the newly designed currency is reportedly released to banks based on first-come, first-served, all banks holding current denominations of the currency are expected to begin returning the notes to the CBN immediately.