The Central Bank of Nigeria (CBN) has cleared the air that it obtained approval from the president, Muhammadu Buhari before proceeding to redesign the new naira notes for N200, N500 and N1000, contrary to what the Finance Minister told the senate on Friday.
The CBN Spokesman, Mr. Osita Nwanisobi, stated this while responding to the Minister of Finance, Budget and National Planning, Zainab Ahmed, who told the senate on Friday that the Central Bank of Nigeria failed to carry to ministry along its new naira design.
Zainab Ahmed also told the senate that the timing for the redesign of the new naira notes which included N200, N500, and N1000 was bad for the economy.
Nwanisobi said “the management of the CBN, in line with provisions of section 2(b), section 18(a), and section 19(a)(b) of the CBN Act 2007, had duly sought and obtained the approval of the President Muhammadu Buhari in writing to redesign, produce, release and circulate new series of N200, N500, and N1,000 banknotes.
The CBN spokesman argued that the wrong timing quoted by the Finance Minister was not true, stating that the apex bank of the country delayed for 20 years to carry out the redesign, whereas the global standard practice is between 5 and 8 years.
Nwanisobi called on Nigerians to support the redesign project stating that the currency redesign exercise was purely a central banking exercise and not targeted at any group.
He said the effort will, among other goals, deepen Nigeria’s push to entrench a cashless economy in the face of increased minting of the eNaira.
In addition, it will help to curb the incidents of terrorism and kidnapping due to access of persons to the large volume of money outside the banking system used as a source of funds for ransom payments.
Recall that CBN governor, Godwin Emefiele on 26 October, announced that “President Muhammadu Buhari approved redesign, production, and circulation of new series of N200, N500, and N1,000 banknotes.
CBN Governor, Godwin Emefiele says the issuance of new Naira banknotes, 20 years after last redesign exercise, will commence on December 15, 2022.”
In the statement, CBN said “new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall cease to be legal tender.”
Also, the apex bank frowned at what it described as “high rates of counterfeiting of N500 and N1,000 banknotes.”
Emefiele in a press briefing added that “The CBN would continue to monitor both the financial system in particular, and the economy in general, and always act in good faith for the achievement of the bank’s objectives and the betterment of the country.”
Emefiele pledged that the interest of rural bankers will be protected in the transition from existing to new currencies.
