The Governor Central Bank of Nigeria (CBN), Godwin Emefiele, has implored Nigerians to embrace the redesigned naira notes.
Emefiele,who stated this at the 57th Annual Bankers’ dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN) held at Eko Hotel, Lagos on Friday,said that the bank has moved forward with the currency redesign of 200, 500 and 1000 naira notes.
According to him,those who refused to return the old notes to the bank by Jan 31, 2023 will have to burn them after the expiration of the date.
He said the currency redesign was as a result of the ever-escalating challenges that are inundating currency management in Nigeria, with grim consequences for our sovereign integrity.
He added:”Analysis of the key challenges primarily indicated a significant hoarding of banknotes, as over 85 per cent of currency in circulation were held outside banking system.This is even as currency in circulation more than doubled from N1.46 trillion in December 2015 to N3.23 trillion in September 2022; a worrisome trend that must be curbed.
“Whilst the global best practice is to undertake currency redesign every 5–8 years, our existing banknotes have remained unchanged in almost two decade 20 years. It is therefore no longer tenable to continue with business as usual; especially given the continually evolving circumstances that could impinge the optimal performance of the Naira.It is against this backdrop and congruent with relevant sections of the CBN Act 2007, that the CBN sought and obtained the approval of President Muhammadu Buhari to redesign the N200, N500, and N1,000 banknotes.
“This policy will quicken the attainment of cashless economy as it is complemented by increased minting of our eNaira. It will curtail currency outside the banking system and, as monetary policy becomes more efficacious, help to rein in inflation”.