Excessive Cash Hoarding: CBN To Release New Designed Naira Notes

Godwin Emefiele, the governor of the Central Bank of Nigeria (CBN), indicated that the bank would issue newly designed Naira notes by December 15, 2022.

He added that on January 31, 2023, the current notes would cease to be regarded as legal tender.

On Wednesday in Abuja, Emefiele revealed this at a news conference.

The Central Bank of Nigeria (CBN) expressed concern over the hoarding of 85% of the cash in circulation by Nigerians.

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Adding that the deposit charge will be waived for transactions under N150,000, he further advised Nigerians to head to their banks to deposit their Naira notes.

The redesign of Naira notes, Emefiele continued, would prevent terrorist and kidnapping ransom payments as well as reduce the use of counterfeit notes.

He said: “Significant hoarding of banknotes by members of the public, with statistics showing that over 80 percent of currency in circulation are outside the vaults of commercial banks.

“Worsening shortage of clean and fit banknotes with attendant negative perception of the CBN and increased risk to financial stability. Increasing ease and risk of counterfeiting evidenced by several security reports.”

“Indeed, recent development in photographic technology and advancements in printing devices have made counterfeiting relatively easier. In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes.”

“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 finalised 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.”