President Muhammadu Buhari has launched the redesigned Naira notes to control the supply of the Naira.Speaking at the unveiling of the locally produced Notes in Abuja, Buhari detailed the basis for his approval for the Central Bank of Nigeria to redesign the 200, 500 and 1000 Naira notes, saying they have reinforced with security features that make them difficult to counterfeit. “There was an urgent need to take control of the currency in circulation and address the hoarding of Naira notes outside the banking system, the shortage of clean and undamaged notes in circulation and the increase in counterfeiting of high-quality Naira notes.
It is on this basis, I gave my approval for the redesign of the 200, 500 and 1000 Naira notes,” Buhari said, noting that he had been approached by the CBN earlier in the year asking for permission to embark on the currency redesign project. The redesign of the Naira notes had been long overdue for a new look, Buhari said, noting that international best practice requires central banks and national authorities to issue new or redesigned notes every five to eight years. He also noted that it has been almost 20 years since the last major redesign of Nigeria’s local currency. A banknote redesign cycle is generally aimed at achieving specific objectives, including, but not limited to improving banknote security, mitigating counterfeiting, preserving the collective national heritage, controlling currency in circulation, and reducing the overall cost of currency management”. He explained.
Godwin Emefiele, Governor of CBN, said at the opening ceremony that the redesigned banknotes would help fight corruption, control rising inflation, make policies more effective and ensure financial inclusion. About a month ago, the CBN said the move to redesign the Naira notes became necessary as the country’s currency management had recently faced several daunting challenges that continued to grow in scale and sophistication with unintended consequences. At least 80 percent of local currency in circulation is outside commercial bank vaults, the CBN noted, saying this was due to significant hoarding of notes by the public. Following the presentation of the new notes on Wednesday, the existing notes would be seized to be considered legal tender on January 31, 2023, according to CBN.