Anuoluwapo Oguntoye.
NAIRA notes are to get new features from December 15, the Central Bank of Nigeria (CBN) said yesterday.
The CBN Governor, Godwin Emefiele, told reporters that N1000, N500 and N200 denominations will wear new looks as part of measures to mop excess cash from circulation and tackle inflation.
Emefiele, told reporters that N1000, N500 and N200 denominations will wear new looks as part of measures to mop excess cash from circulation and tackle inflation.
CBN PRESIDENT:While given his speech
While addressing a conference in Abuja, he said the apex bank will start issuing the redesigned notes from December 15 and that existing bills will cease to be legal tenders by January 31,
President Muhammadu Buhari has approved the redesign, production and circulation of new banknotes, said CBN President.
He said: “The CBN has finalised arrangements for the new currency to begin circulation from December 15, 2022. The new and existing currency shall remain legal tenders and circulate together until January 31, 2023 when the existing currencies shall seize to be legal tender.”
Emefiele said the bank also plans to mop up the N3.23 trillion from outside the banking system back into bank vaults in 100 days.
The CBN boss said: “As at September 2022, we had N3.23 trillion in circulation out of that, N2.73 trillion is outside the vault of the bank. So, first of all, what we want to do is to mop all this N3.23 trillion back into the CBN and take control of money supply and we will begin to see how this will rein in inflation no doubt this will have positive impact on inflation.
“On timeline for mopping up, I will say today (yesterday) is December 26, so, we have about six to seven days to the end of October till January 31, 2023, that is almost about 100 days to mop up the old currency out of circulation back to the vault.”
Going forward, the CBN has ordered all Deposit Money Banks (DMB) currently holding the existing denominations of the currency to “begin returning these notes back to the CBN effective immediately”.
“The newly designed currency will be released to the banks on first-come-first-serve basis”, he said.
Emefiele urged bank customers “to begin paying into their bank accounts the existing currency to enable them withdraw the new banknotes once circulation begins in mid-December 2022”.
He said the commercial banks have been told “to open, their currency processing centers from Monday to Saturday so as to accommodate all cash that will be returned by their customers”.
For as long as the transition from the old to new notes would last, Emefiele announced the suspension of charges for cash deposits.
He said: “Bank charges are hereby suspended with immediate effect. Therefore, DMBs are to note that no bank customer shall bear any charges for cash returned/paid into their accounts.”
Emefiele, however, clarified that what we have right now is if you pay N150,000 into your account, you do not incur charges. But, if you pay more than N150,000 you will pay the charges, which means it does not limit you from paying in whether its N10 million or N1 billion into your account.
He went on to say that “the only thing is that it says you will pay for cash processing. So, what we’ve done by this is to say even if you want to pay N1 billion or N10 billion into your account you are not going to be charged any money.
“The present notes remain legal tender and should not be rejected as a means of exchange for purchase of goods and services.”
On the motive behind the redesigning of the naira notes, Emefiele said the step will significantly curb hoarding of banknotes by members of the public.
Tendering vital statistics, Emefiele noted that more than 80 per cent of the cash in circulation are outside the vaults of commercial banks.
Besides, he said the rising shortage of clean banknotes with attendant negative perception of the CBN and increased risk to financial stability, informed the new measures.
He said: “The increasing ease and risk of counterfeiting evidenced by several security reports. Development in photographic technology and advancements in printing devices have made counterfeiting relatively easier.
He said "In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1, 000 banknotes.
Lastly in his speech, He said "Available data at the CBN indicate that N2.73 trillion out of the N3.23 trillion currency in circulation was outside the vault of commercial banks across the country and supposedly held by members of the public".
Let me expecting the new Naria note from the Central Bank of Nigeria.
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