Nigeria’s Central Bank shifts end of old Naira Notes from Jan 31 to Feb 10

*As Emefiele says Naira Redesign Program yielding results

*Believes inflation, foreign exchange nose-diving in favour of Naira

*Links military victories over terrorism to new Naira policy of CBN

By BASHIR ADEFAKA

The Central Bank of Nigeria (CBN) has announced extension of deadline for the use of old Naira notes in the country to February 10, 2023.

The embattled Governor of the CBN, Mr. Godwin Emefiele, made this known in a press conference address he gave immediately after emerging from a meeting with President Muhammadu Buhari in his Daura, Katsina State country home, on Sunday January 29, 2023.

Emefiele said the purpose of his Sunday’s meeting with the President was to provide him with updates about the implementation status of the CBN currency redesign program currently ongoing across the Federation, while reiterating the aim for taking the monetary decision at this time in the life of the nation to include help weaken the cash holding strength of terrorists and bring down inflation in favour of the Naira.

The CBN Governor, who thanked President Buhari for giving his apex bank the approval to embark on the exercise he called ambitious program, explained that the CBN had not had the opportunity to embark on such currency redesign program in the last 19 years and, indeed by emphasis, that only an incorruptible leader of the President’s status could give such approval to the CBN.

“From the on-set of this currency redesign program, we made it clear that for 19 years, the CBN hasn’t been able to conduct this important aspect of its mandate, whereas this should normally have been done within a 5-8 years window.

“Our aim is mainly to make our Monetary Policy Decisions more efficacious and like you can see; we’ve 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 program and we can see that the Military are making good progress in this important task in Nigeria,” he recounted.

Emefiele, who has hung on his neck several allegations including those of sponsoring executed protests and planned violent ones in inexplicable attempt to bring down the leadership of the Department of State Services (DSS), had returned to the country last week and was received in the rock of power, the Aso Rock Presidential Villa, by the same President only to whom the DSS as an embodiment of secret agency is reportable.

On his second meeting holding in far away Daura on Sunday he said, “Available data at the Central Bank of Nigeria has shown that in 2015, Currency-in-Circulation was only N1.4 trillion. As at October 2022, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking Industry and N2.7 trillion held permanently in people’s homes. Ordinarily, when CBN releases currency into circulation, it is jmeant 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 the commencement of this program, we have collected about N1.9 trillion, leaving us with about N900 billion (N500b + N1.9 trillion).”

Steps against hitches

He listed steps taken by the CBN to achieve effective distribution of the new currency to the generality of Nigerian people and also disclosed what he did with the Economic and Financial Crimes Commission (EFCC) and ICPC to ensure that all breaches by either CBN branches or Deposit Money Banks (DMBs) across the country are tamed with sanity assured.

“We held meetings with our Deposit Money Banks (DMBs) and provided them with Guidance Notes on Processes they must adopt in the collection of old notes and distribution of the New Notes to all Nigerians.  These include specific directives to DMBs to load new notes into their ATMs nationwide to ensure an equitable/transparent mechanism for the distribution of the new notes to all Nigerians.

“We commenced a nationwide sensitization through the Print and electronic media to create an awareness on the redesigned notes to Nigerians including collaboration with the National Orientation agency to reach all Nigerians across multiple channels.

“We deployed 30,000 Super Agents nationwide to assist in our Cash Swap Initiative in the hinterlands, rural areas, and regions underserved by banks in the Country to ensure that the weak and vulnerable ones amongst us can swap/exchange their old notes.

“We deployed all our staff, particularly the Assistant Directors, Deputy Directors and Directors in Abuja to proceed to all CBN branches Nationwide to join the mass mobilization campaign and monitoring programs, working with the Deposit Money Banks, agents and our Branch controllers across the 36 states of the Federation.  This is meant to ensure compliance with all our guidelines already issued for smooth implementation of the program.  Although we have received some reports of breaches by some bank branches, we have agreed with Executive Chairmen of the EFCC and ICPC to assist to assist us, by sending their staff to all CBN and DMB branches nationwide to join in monitoring the implementation of these guidelines. The aim is to ensure compliance with the laid down guidelines.

“We are happy that so far, the exercise has achieved a success rate of over 75 percent of the N2.7 trillion held outside the banking system. Nigerians in the rural areas, villages, the aged and vulnerable have had the opportunity to swap their old notes; leveraging the Agent Naira Swap initiative as well as the CBN Senior staff nationwide sensitization team exercise.

“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.”

And the extension

“Based on the foregoing, we have sought and obtained Mr. President’s approval for the following:

“A 10-day extension of the deadline from January 31, 2023 to February 10, 2023; to allow for collection of more old notes legitimately held by Nigerians and achieve more success in cash swap in our rural communities after which all old notes outside the CBN lose their legal tender Status.  Our CBN staff currently on mass mobilization and monitoring together with officials of the EFCC and ICPC will work together to achieve these objectives.

“A 7-day grace period, beginning on February 10 to February 17, 2023, in compliance with Sections 20(3) and 22 of the CBN Act allowing Nigerians to deposit their old notes at the CBN after the February deadline when the old currency would have lost its Legal Tender status.

“We therefore appeal to all Nigerians to work with the Central Bank of Nigeria to ensure a hitch free process for the implementation of this very important program,” Godwin Emefiele, Governor of Central Bank of Nigeria, said in the press conference address he gave copy of which was sighted by The DEFENDER.