New Naira Notes

CBN explains ‘simplicity’, benefits of redesigned Naira notes

*The Central Bank of Nigeria has clarified that the recent redesigning of the Naira notes was about change of ‘colour’ or ‘size’ as a security feature, but the Bank is not planning to introduce a higher note than N1,000 in the country

Isola Moses | ConsumerConnect

The Central Bank of Nigeria (CBN) has responded to certain concerns that its hitherto much anticipated redesign of Naira notes was merely a colour change of the notes without additional security features to the national currency denominations.

The Bankers’ Bank clarified that it had limited time to redesign the N200, N500 and N1,000 notes to achieve the objective in the economy.

The CBN stated that the the new colours of the Naira notes actually provided additional security.

ConsumerConnect had reported that President Muhammadu Buhari recently launched the redesigned N100, N200 and N1,000 notes at a ceremony in the State House, Abuja, FCT.

Mr. Ahmed Umar, Director, Currency Operations of CBN, had made the clarification at a three-day workshop organised by the Nigeria Deposit Insurance Corporation (NDIC), for members of the Financial Correspondents Association of Nigeria (FICAN) and Business Editors.

The workshop, which commenced Monday, November 27, 2022, in Port Harcourt, Rivers State capital, had the theme: “Building Depositors Confidence Amidst Emerging Issues and Challenges in the Banking Industry”.

Umar, represented at the forum by Mrs. Amina Halidu-Giwa, Head of Policy Development Division, Currency Operations Department of

threw more light on comments about how the new notes are so “simple”. Mrs. Halidu-Giwa said: ”We want to solve a problem, and we have limited time to do that. “Redesigning is about change of colour or size. The ink itself is a security feature.”

CBN hasn’t a plan to introduce N5,000 denomination, note restructuring

The Bank’s Head of Policy Development Division, Currency Operations Department, who Mrs. Halidu-Giwa who spoke on the topic, “Redesign of the Naira: Benefits to the financial system and the Nigerian economy”, disclosed the CBN has no plan to introduce N5,000 notes.

According to her, the Bank was not carrying out ‘note restructuring’.

She further stated: “We are not introducing any new note because there was noise; some people have seen one N5,000 note that we don’t know about.”

Halidu-Giwa as well explained if the Bank had wanted to carry out note restructuring, it would need to coin the lower bills, like the N100 note for example.

The CBN has not made any provision for exchange in the redesigned note, she said.

The official noted that what the Bank was printing would only replace the currencies withdrawn from circulation.

She also said: “What we are printing is going to be very limited because we want other means of settling transactions to be used.

“Because Nigerians and cash, there seems to be a problem.

“And it will give us enhanced visibility and control of the currency.

“We will also be able to control the number of banknotes outside.”

Benefits of redesigned Naira notes

The Central Bank of Nigeria has restated that the recent redesign of Naira notes will encourage expanded financial inclusion and other forms of electronic transactions.

Halidu-Giwa stated the policy would discourage excessive carrying of cash and encourage other electronic means of transactions.

According to her, when the unbanked are fully captured in the country’s financial system, it would help to form adequate data for effective planning for greater economic growth.

She added: “Naira redesign will also help in reducing cash management expenditures, give visibility and control and will help the bank to know the volume of money in circulation.

“It will also help in fighting counterfeiting and money laundering.”

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