According to President Muhammadu Buhari, his administration would not renege on the Central Bank of Nigeria’s (CBN) decision to redesign the country’s highest denomination notes, the N1,000, N500, and N200.
Wednesday night in London, UK, Buhari made this statement immediately after meeting with King Charles III at Buckingham Palace.
The president declared that the CBN governor Godwin Emefiele’s plan to redesign the naira, which he unveiled last month, will be carried out.
There are several facts regarding the program that all Nigerians should be aware of as the government supports CBN’s naira redesign policy.
Here are some things to be aware of, based on information from the CBN and the Chartered Institute of Bankers of Nigeria (CIBN).
Justifications for new banknotes
In order to combat the problem of rising inflation, which reached a 17-year high in September 2022, this will aid in limiting the amount of money in circulation and tightening the money supply.
With more than 80% of the world’s currency in circulation outside of commercial banks’ vaults, it will solve the issue of public hoarding of banknotes.
It is intended to address the growing lack of crisp, functional banknotes.
It is also intended to address the problem of counterfeit Naira notes, which has been documented by numerous publications.
Additionally, it will lessen the likelihood of terrorism and kidnapping because fewer people will have access to enormous sums of money that can be used as ransom.
It was established to advance the CBN’s efforts to firmly establish a cashless economy and financial inclusion (Banking the unbanked)
Finally, it is a financial tool to support the naira.
What you must understand
The present N200, N500, and N1000 notes will be replaced by new currency notes by the CBN.
On December 15, 2022, the new banknotes will become legal tender.
By January 31, 2023, the old Naira notes will no longer be accepted as legal tender.
Banks have been urged to continue operating all of their deposit centers from Monday through Saturday for collections.
There are no limits on the amount that people or businesses can deposit, and no bank customer will be charged for cash that is returned to or deposited into their accounts during the implementation.
In January 2023, a new cashless policy will be unveiled.
What you should do
To deposit all old banknotes, go to the branch of your nearest bank (N200, N500 and N1000)
If you don’t already have one, open one at the bank branch of your choice that is closest to you and deposit all of your used currency (N200, N500 and N1000).
Utilize your bank app or USSD to carry out standard banking transactions.
Citation: CBN, CIBN
