Nigeria’s weak, depreciating bank notes will be wearing new looks sooner, Central Bank of Nigeria (CBN) Governor Godwin Emefiele, has just announced in Abuja.
The currency denominations that will be redesigned are N200, N500 and N1,000 notes.
Speaking during a special press briefing in Abuja, Emefiele said the redesign will take effect from Thursday, December 15, 2022.
President Muhammadu Buhari has granted approval for this to be done, Emefiele stated.
“In line with the provisions of Sections 2(b), Section 18(a) and Section 19, Sub section(a) and (b) (2007), the management of the CBN has sought and obtained the approval of President Muhammadu Buhari to redesign, produce, release and circulate new series of banknotes at N200, N500 and N1,00 levels,” he said.
“In line with this approval, we have finalised arrangements for the new currency to begin circulation from December 15, 2022 after its launch by President Buhari.
“The new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall cease to be a legal tender.”
Once the new notes are in circulation, Nigerians are expected to take old notes to banks in exchange for the new notes.
CBN Governor Emefiele also expressed concerns over the mutilation of Naira notes and the volume stashed outside the banking system.
Emefiele added, “To be more specific, as of the end of September 2022, available data at the CBN indicates that N2.7 trillion out of the N3.3 trillion currency in circulation was outside the vault of commercial banks across the country and supposedly held by members of the public.
“Evidently, currency in circulation has more than doubled since 2015, rising from N1.46 trillion in December 2015 to N3.2 trillion as of September 2022. I must say that this is a worrisome trend that must not be allowed to continue.”
According to him, the redesign policy will help address some of the nation’s security threats, especially kidnapping and terrorism.
He believes that terrorists and kidnappers capitalise on the large excess of money in circulation to carry out their nefarious activities.