NAIRA REDESIGN IS LONG OVERDUE – CBN

The Central Bank of Nigeria (CBN) said on Thursday that the decision to redesign the N200, N500, and N1,000 notes was long overdue, and that it followed the law and due process in redesigning some of the Naira notes.

Wahab Oseni, the Ogun State branch Controller of the apex bank, stated this at a sensitization programme on the newly redesigned Naira notes held at Kuto in Abeokuta, saying the decision was in the best interests of all Nigerians.

While noting that it was common practice for Central Banks around the world to redesign, produce, and circulate new local legal tender every five to eight years, Oseni noted that the N1,000 had been in circulation for 15 years, while the N500 and N200 had been in circulation for 16 and 20 years, respectively.

Hoarding large sums of banknotes outside commercial bank vaults, he said, should be discouraged by anyone who cares about the country.

He clarified that the CBN and the heads of all commercial banks in the country made the decision to redesign the Naira notes.

“The introduction of the new Naira notes will help check counterfeiting,” he added. The redesign is also expected to strengthen the economy, reduce cash management costs, and improve the CBN’s visibility of the money supply.”

He clarified that the Central Bank of Nigeria’s decision to redesign the three Naira denominations is not directed at any particular group or individual.

“The global standard period for redesigning a country’s currency is five to eight years,” which means the Naira is long overdue for a redesign. Also, having a considerable amount of money currently outside the banks back into the financial system may help ease inflationary pressures, deepen financial inclusion and enhance cashless policy”.

He advised Nigerians to develop the habit of saving money in banks, claiming that when people save money in banks, it is safe.

“Data have shown that a large volume of banknote hoarding by the public has resulted in a shortage of clean and fit banknotes,” Oseni said. Increase in the rate of counterfeiting in the country and the long span of re-designation of Naira notes, which according to best practice, should be undertaken every 5 to 8 years”.