CBN Announces Introduction Of New Redesigned Naira Notes

The Central Bank of Nigeria (CBN) has announced the introduction of new designed naira notes into circulation with effect from December 15, 2022.

The governor of CBN Godwin Emefiele, disclosed this to journalist on Wednesday at a press conference.

He said the apex bank sought and got the approval of President Mohammadu Buhari before embarking on the project.

According to the CBN governor, designing new notes became necessary following persisting concerns regarding the challenges of managing existing series of banknotes, and currency in circulation, particularly those outside the banking system in Nigeria.

In his words, “These challenges primarily include: 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 and 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.

“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.”

The apex bank said the redesigning, production and circulation of the new series will affect, N100, N200, N500, and N1, 000 banknotes.
Source: News Shelve