The Central Bank of Nigeria (CBN) in a move to mop up the over N2.73 trillion cash in circulation outside of the bank said it’s introducing a new currency December 15th, 2022.
The CBN Governor, Mr. Godwin Emefiele said he has gotten approvals from President Muhammadu Buhari to introduce the new bank notes which will be a redesign of N200, N500, N1000 notes.
It’s not immediately clear how long the old notes would be legally acceptable before being eased out but experts say the move is to bring all cash into the banking system and also deal with the corruption associated with currency hoarding.
Recall that in 1984, President Muhammadu Buhari had ordered the introduction of new naira notes, a situation that saw millions of Nigeria loose money at the time.
Ostensibly to encourage Nigerians to deposit their cash into the banks for currency management, the governor said “Bank charges for cash deposit are suspended with immediate effect.”
He further stated that over 80 percent of the total cash in circulation is outside the banking system, a situation that may be curb with new currency introduction.
Our correspondent reports that the bulk of cash outside of the banks are in higher denomination hence the decision of the CBN.
Emefiele said: “N2.73 trillion out of N3.23 trn exist outside the commercial bank.”
He said also opined that the decision will impact the value of the naira.