It is no more a breaking news that the central bank of Nigeria has decided to redesign the Naira Notes, which will be rendering the current naira note useless as from the stipulated time and in this detailed guide about the naira note Change, I will be providing you with all you need to know about the new development.
The decision to change the naira note is made known to the general public on Wednesday 26/10/2020 at a news briefing in Abuja.
The governor of the Central Bank of Nigeria made it known that the redesigned Naira Notes will be released by December 15, 2022 and that the existing ones will seize being regarded as legal tender by January 31, 2023.
However, the decision has fueled lots of opinions from different individuals across the country, while some individuals accepted it as a great development, a lots of individuals rejected the idea and seems not to understand the whole thing.
The reason stated above is what prompts browsingtechzone to release this detailed guide about the naira note Change, to be an analysis of the new development and to let you understand all you need to know about the Naira Notes redesign and above all, tell you the next step.
Table of Contents
Why Is CBN Redesigning Naira Notes
According to the CBN governor, the decision to change the looks of the naira notes is in a bid to control the amount of money in circulation and thereby tackling inflation.
The aim of the Central Bank of Nigeria is to redesign N100, N200, N500, and N1000 and start disbursing the new notes by December, 2022, then by January 31,2023, the old notes are expected to be out of circulation and seized to be legal tender.
Godwin Emefiele, made it known that the currency management has faced several daunting challenges that have continued to escalate in scale and sophistication with attendant and unintended consequences for the integrity of both the CBN and the country.
Moving futher, we learned that a lot of challenges have to be tackled by the central bank of Nigeria and on of the strategic way to challenge these challenges is by refraining the old note and make it more innovative.
“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,” Godwin Emefiele said.
“To be more specific, as at the end of September 2022, available data at the CBN indicate that N2.73 Trillion out of the N3.23 trillion currency in circulation, was outside the vaults of Commercial Banks across the country; and supposedly held by the public.
“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.”
What Effect with the naira redesign have on Nigeria economy
Speaking on the development, Temitope Omosuyi, investment strategist, Afrinvest Securities Ltd, said the move would hugely discourage the culture of illicit money stacking.
“For people that have illicit money stacks in the house, they have to bring them out,” he said.
Other identified possible effects are:
- Tighten grip on money supply, which will allow the central bank of Nigeria to take the appropriate control of the amount of money in circulation.
- Aid positive impact on Naira value.
- And as well to regulate the cost of printing naira notes.
Is CBN Redesigning Naira Notes
That’s a capital yes! The naira notes will be redesigned and that’s the main reason why I am creating this guide in order to let you know the next step you must take b for the old notes seized to b legal tender.
Will CBN design N5,000 and N2000 notes
That’s a capital no, and you should regard such news as a fake News. The Central Bank of Nigeria will only redesign the old notes and not creating new notes.
Early this morning, a video started circulating on WhatsApp and shows some bundles of new 2,000 and 5,000 naira notes with the name of the Central Bank of Nigeria (CBN) clearly printed on them. Which I cautioned the individuals that shared Such video.
You should understand that as a the moment of creating this guide about the naira note Change, the CBN aim is to remove the old notes from circulation and not to create new denominations.
Nest step to take as naira note Changes
Now that you’re fully aware of the latest development as far as the naira note Change is concerned, the next thing is to know the appropriate steps to take so that the new changes won’t work against you.
Having been aware if the development, the next step is to make sure you keep the old notes out if your possession before the deadline. Especially if you have excess in your possession.
1. Return excess money to the Bank. As at this moment, the rate at which people will be performing deposit transaction at each branches of the deferent banks across the country will be on its rise and it’s normal.
If you have excess note in your possession and you won’t be able to spent it all before the stipulated period of time, make sure you return it to the bank as soon as possible.
The more you delay the process, the More difficult it will become as there are possibilities that banks will be crowded towards the deadline, but since you’re aware earlier, it will be at your advantage before everyone else start returning the old notes to th bank.
Maybe you’re thinking of charges you might incure during the deposit activities? Don’t worry, Emefiele already told the general public that the charges for cash deposits are suspended with immediate effect to facilitate the phasing out of the current naira notes.
The apex bank directed deposit money banks (DMBs) to ensure cash returned/paid into their accounts attracted zero charges.
2. Make sure to have spent 99.9% of the old notes before the stipulated period of time.
By taking the aforementioned steps above, you will be totally safe and you won’t be hoarding the old notes when it would have been seized to be a legal tender.
Having review the new decision of the central bank of Nigeria to change the old notes, it can be concluded that the new naira not change have potential of bringing some positive changes to it’s value if everything goes as planned. On this note, everyone should comply with the new directive and hope for positive changes in future.