NIGERIA: New Naira notes roll out Dec 15, old notes cease to exist Jan 31

*All deposit charges suspended – CBN

“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,” CBN Governor said.

The Central Bank of Nigeria (CBN) has revealed that it will redesign the N200, N500, and N1,000 notes.

CBN Governor, Godwin Emefiele, who disclosed this during a special press briefing in Abuja on Wednesday said the apex bank will begin circulation of the news notes as from December 15, 2022.

The CBN governor said the redesigning project was as a result of request from the Federal Government.

Explaining further on reason for the development, Emefiele said the action was taken in order to take control of the currency in circulation.

“Although global best practice is for central banks to redesign, produce and circulate new local legal tender every 5–8 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 said.

CBN, Emefiele stated, having secured the approval of President Muhammadu Buhari, will roll out the new notes to replace the existing currency in circulation.

Once the new notes are designed Nigerians are expected to take old notes to banks for the new notes.

The CBN Governor is also concerned about how Nigerian currency is being stored currently.

According to him, the bulk of the nation’s currency notes was outside bank vaults and the CBN would not allow the situation to continue.

“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,” he said.

“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 continued to be allowed.”

According to him, the initiative by the CBN 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 to carry out their nefarious activities.

CBN Governor Godwin Emefiele said the new and existing currencies will remain legal tender and circulate together until January 31, 2023 when the existing currencies shall cease to be legal tender.

He also said all commercial banks currently holding the existing denominations of the currency may begin returning these notes back to the CBN effective immediately.

“The newly designed currency will be released to the banks in the order of first-come-first- serve basis,” he said.

“Customers of banks are enjoined to begin paying into their bank accounts the existing currency 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.”

He said for the purpose of this transition from existing to new notes, bank charges for cash deposits are hereby suspended.

However, deposits above N150,000 will still attract charges.

“We would like to use this opportunity to reassure the general public that the CBN would 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,” Mr Emefiele said.