New naira notes are set to roll out from December 15

The Central Bank of Nigeria has announced the redesign and printing of new naira notes for selected notes. Besides it being a norm for central banks to redesign local legal tender from time to time, other reasons for the redesign was stated by the apex bank.

Rapid advancement in printing and photographic technologies have made counterfeiting considerably easier. The CBN has noted substantially greater counterfeiting rates recently, particularly for higher-denomination N500 and N1,000 notes.

The newly redesigned N200, N500, and N1000 notes will go into circulation on December 15, 2022, according to the Central Bank of Nigeria (CBN).

This was revealed on Wednesday during a closed briefing by Governor Godwin Emefiele. He claimed that the Federal Government's consent led to a redesign of the naira notes.

Emefiele added that bank fees for cash deposits had been discontinued immediately in accordance with the switch from old to new notes.

The CBN governor claimed that this was done to limit the amount of counterfeit money in circulation and to prevent kidnappers and terrorists from receiving ransom payments.

“More specifically, as at the end of September 2022, available data at the CBN indicate that N2.73tn out of the N3.23tn currency in circulation was outside the vaults 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 N1.46tn in December 2015 to N3.23tn as at September 2022. I must say that this is a very worrisome trend that cannot continue to be allowed,” Emefiele said.

He stated that some qualities of a strong central bank are the integrity of a local legal tender, the effectiveness of its supply, and its ability to effectively implement monetary policy. However, in recent years, currency management has had to contend with a number of overwhelming problems that have only increased in size and complexity, with unforeseen effects on the CBN's and the nation's integrity.

He added that until January 31, 2023, when the current banknotes cease to be legal tender, the new and old naira notes would continue to be legal tender and circulate side by side.

The CBN governor added that the increased production of the e-Naira would enhance the redesign of the naira and help to promote a cashless society.

He claimed that the naira had not undergone a redesign in the past twenty years, despite the fact that it is recommended by international standards that central banks redesign, create, and distribute new local currency every five to eight years.

The new redesign of banknotes would only be available in denominations of N100, N200, N500, and N1,000, according to a remark that was subsequently made public.

Emefiele stated that current banknotes would cease to be considered as legal tender by the proposed deadline in order to quickly get rid of monies that Nigerians are hoarding.

He further advised Nigerians to deposit their Naira bills at their banks, noting that deposits under N150, 000 will not be charged a deposit fee.

In order to handle all of the money that would be remitted by their customers, he also instructed all commercial banks to maintain their currency processing centers open from Monday through Saturday.