Commercial banks in Nigeria have commenced collection of existing naira notes sequel to the planned redesign of the currency by the Central Bank of Nigeria,CBN,Premium news can report.
Premium News reports that one of the country’s oldest commercial bank,Union Bank Plc notified its customers nationwide in a public notice.
It explained that the development was necessary to enable the customers withdraw the new banknotes when they are in circulation.
The notice read:”The Central Bank of Nigeria (CBN) has announced its plans to redesign and circulate a new series of banknotes – N200, N500, and N1,000 beginning December 15, 2022. The new and existing banknotes will remain legal tender until January 31, 2023.
“What does this mean for you?You can start depositing your existing naira notes into your Union Bank account to enable you withdraw the new banknotes when they are in circulation. You will not be charged for cash deposits into your account.You will be unable to spend the existing banknotes (N200, N500, and N1000) from February 1, 2023”.
The CBN had on Wednesday said that it would redesign the country’s currency from 200 Naira denomination to N1,000 notes.
It said the action was taken in order to take control of the currency in circulation, even as the CBN Governor revealed that the bulk of the nation’s currency notes were outside bank vaults and that the CBN would not allow the situation to continue.
According to him, the policy was in line with Sections 19, Subsections A and B of the CBN Act 2007.
This Act Emefiele said is the foundation on which the Management of the CBN sought and obtained the approval of President Muhammadu Buhari to redesign, produce, and circulate new series of banknotes at N200, N500, and N1,000 notes.
