*In line with the Central Bank of Nigeria’s Naira redesign policy, commercial banks Thursday, December 15, 2022, begin the release of new notes into circulation in the economy

Isola Moses | ConsumerConnect

The Central Bank of Nigeria’s newly-redesigned and launched Naira notes will go into circulation effective Thursday, December 15, 2022, as the Deposit Money Banks (DMBs) release the fresh notes to customers via Over-The-Counter (OTC) payments.

Recall that Nigerian President Muhammadu Buhari unveiled the new bills at a weekly Federal Executive Council (FEC) meeting in the State House, Abuja, FCT, recently.

Buhari unveiled the redesigned N200, N500 and N1,000 denominations as replacements for the existing banknotes slated to cease as legal tender in the the country January 31, 2023.

Mr. Godwin Emefiele, Governor of the Central Bank of Nigeria, October this year, had announced that the banking sector regulator would release re-designed naira notes by December 15, 2022.

Emefiele stated that the redesigning policy of the affected Naira notes would help to curb counterfeit currency, and reduce ransom payments to terrorists and kidnappers in the country.

According to him, it was worrisome to note that 85 percent of the total currency in circulation was being hoarded by Nigerians.

Emefiele also said the redesigning of the national currency would help to mop up the currency outside the banking sector, adding that out of about N3.3trillion in circulation, close to N2.75tn were outside the banking sector.

The Bank recently disclosed that over one trillion Naira had been deposited by Nigerians following the announcement of the currency redesign policy.

We’ve received new notes from CBN, say DMBs

Meanwhile, top officials of commercial banks have confirmed they received the new Naira notes from the Central Bank of Nigeria a couple of days ago.

The top bank officials Wednesday told The Punch, that the redesigned currency would be released to their customers effective Thursday, December 15.

A top official of a commercial bank who sought anonymity, said: “We got the funds (new notes) about two days ago.

“Our head office has dispatched the funds to various area offices across the country.

“My branch will pick up our allocation at a nearby area office.

“We will start releasing the new notes to our customers by Thursday.”

It was also learnt that multiple banking sources revealed the new notes had arrived, and were being kept in their vaults.

They confirmed the new notes would be paid to customers in banking halls, beginning from Thursday.

An official of Polaris Bank, who pleaded anonymity also disclosed “the new notes have arrived, it will be made available to customers from tomorrow (Thursday).”

A Manager at First Bank Limited, reportedly noted: “We have the funds from the CBN now.

“It came in some days ago but it will be made available to customers from tomorrow (Thursday).”

Growth of e-payments despite release of new Naira notes

Amid the release of new Naira notes into circulation, some bank officials have claimed the amount of the new notes available to the various bank from the CBN is yet comparatively small, according to report.

Most OTC payments will still have to be made using the old notes because the amount of the available new notes is still little, said the bank officials.

An official of FCMB in Lagos was quoted to have stated: “The amount given to us is small, compared to what we need.

“For example, what is available to my branch is less than N1million.

“This is nothing compared to what we need. But I believe it will increase with time,”

Banks activate reconfiguration of ATMs over new notes

Meanwhile, multiple banking sources confirmed they have started to reconfigure their ATMs to identify the new Naira notes.

A top bank executive said, “Most of the banks have started reconfiguring their ATMs so that they can identify the new notes of N1000, N500 and N200,” report said.

Source further noted that  findings from the CBN indicated that the total amount to be released into circulation might not be much as the sum previously in circulation.

A CBN’s top official reportedly stated, that the banking regulator is planning to increase electronic payments and not cash transactions in the Nigerian economy.

The CBN will not be printing large amount of the new notes, said the official.

He noted: “The CBN has been disbursing the new naira notes to the banks but does not intend to disburse large quantities because it wants to boost electronic payments.

“Don’t expect that there will be a large circulation of the new notes in the economy.

“There are different electronic channels that people should be using.”