Central Bank of Nigeria (CBN) on Wednesday announced its decision to redesign the Naira notes.
Gatekeepers News reports that the exercise would affect 200, 500, 1000 notes according to the apex bank Governor, Godwin Emefiele who announced this at a press briefing in Abuja, the nation’s capital.
The CBN will begin circulation of the new currency on December 15, 2022, and Nigerians are urged to begin paying into their bank accounts the existing currency to enable them to withdraw the new banknotes once circulation begins.
Emefiele also added that bank charges for cash deposits have been suspended with immediate effect, “for the purpose of this transition from existing to new
notes.”
He explained that the decision was because the “CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes.”
He noted that “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.
“In line with this approval, we have finalized arrangements for the new currency to begin circulation from December 15, 2022. The new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall seize to be legal tender. ”
Emeifele further stressed that “the present notes remain legal tender and should not be rejected as a means of exchange for purchase of goods and services.”
