Three existing Nigerian currency notes – N200, N500 and N1,000 – will cease to be legal tender from 31st January next year, that is 98 days away.
The Central Bank of Nigeria (CBN) announced on Wednesday that Nigerians and others in possession of the notes should return them the banks, in place of the redesigned notes.
According to the CBN Governor, Mr Godwin Emefiele, the redesign would take effect from 15th December.
At a special media briefing in Abuja, CBN Governor, Mr Godwin Emefiele made this disclosure on Wednesday at a special press briefing in Abuja, the federal capital territory (FCT).
“I think that (the time) is adequate to mop up the currency out of circulation back to the vault of the CBN”, Emefiele said.
For those who do not have an account, the CBN Governor advised that they should go to the nearest bank branch where an account would be opened for them for the purpose of returning the old Naira notes.
“If you are carrying cash, you can go to the nearest bank branch near you. They will take your cash and open an account for you for the purpose of returning the old Naira into the bank’s vault and then collecting the new Naira (notes) when we begin to release them”, Emefiele said.
The current N200 note was introduced in November 2000, while the N500 became a legal tender in April 2001. In response to expansion in economic activities and in order to facilitate an efficient payment system, the highest denomination of N1,000 came into the picture in October 2005.
The Nigeria currency has suffered bashing against major international currencies as a result of spiralling inflation. Only last week, the National Bureau of Statistics reported a 17-year-high inflation rate of 20.8 percent, blaming it on soaring food prices and supply chain disruption.
Although the Naira officially exchanges for 433 to a United States Dollar, it is between N740 and N749 in the parralel market.
On Tuesday in Lagos, Emefiele had revealed plans by the CBN to take decisive steps to ensure that Nigeria operated a 100 percent cashless economy. At the first-year anniversary of the Central Bank Digital Currency, the eNaira, the CBN Governor said: “The destination as far as I am concerned is to achieve a 100 per cent cashless economy in Nigeria. I know that those who doubt us will say that 100 per cent cashless is unattainable. Yes, it is true! But Nigeria must move from being a predominantly cash economy to a predominantly cashless economy.
“At this time, I can say from what I have read from online banking to introducing the POS to ATMs, to mobile banking, working and collaborating with the Ministry of Education, I want to say that we have provided all the necessary infrastructure that should enable us make cashless a nationwide journey.
“It is not something that some of us will like but, we would in the coming weeks and months make pronouncements that must make cashless go nationwide. I believe part of those pronouncements will begin from tomorrow and there will be some breaking news tomorrow about it.
“Even the bankers committee will hold a special bankers committee meeting tomorrow to deliberate further on this, so let’s expect the news”, Emefiele said.
