President Muhammadu Buahri has revealed the new naira notes proposed by the Central Bank of Nigeria (CBN) at the Government House today.
On Wednesday morning, before the Federal Executive Council (FEC) meeting at the state palace in Abuja, President Buhari showed the new currency notes.
The Central Bank of Nigeria’s (CBN) governor, Godwin Emefiele, was present at the unveiling ceremony.
In October, President Buhari authorised the Central Bank of Nigeria to redesign all significant naira notes in October.
It specified that the new notes would begin to circulate on December 15, 2022.’
A plan to control the currency
President Muhammadu Buhari in accordance with the Central Bank announced that the naira notes would be redesigned in order to reduce the amount of money in circulation, manage inflation, and thwart counterfeiting.
“These challenges primarily include: Significant hoarding of banknotes by members of the public, with statistics showing that over 85 percent of currency in circulation are outside the vaults of commercial banks,” CBN governor, Godwin Emefiele, had said.
To be more specific, according to the CBN’s figures as of the end of September 2022, the general population was said to hold N2.73 trillion of the N3.23 trillion in money in circulation outside the country’s commercial banks’ vaults.
“Evidently, currency in circulation has more than doubled since 2015; rising from N1.46 trillion in December 2015 to N3.23 trillion in September 2022. This is a worrisome trend that cannot be allowed to continue.”
Provisions for simple exchange
The bank claimed that due to concerns about Nigerians living in rural regions and in light of the short deadline for presenting the old notes, it had created provisions for a straightforward exchange.
The bank asserted that it was working with relevant financial system organisations during implementation to make sure that vulnerable citizens weren’t harmed.
“Whilst noting the progressive increase in financial access points and alternative banking channels over the years (electronic/internet banking, mobile apps, ATM, Cards/PoS, eNaira, agent banking, etc.), the Bank acknowledges that these may not be evenly distributed across all geopolitical zones and in some rural areas.
“In operationalising this initiative, the CBN has been collaborating with relevant agencies and other stakeholders in the financial system in its execution, particularly ensuring that vulnerable citizens are not disenfranchised” a statement by the Apex Bank said on November 1.
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