The Central bank of Nigeria has taken action on the Policy of redesigning Nigeria’s Currency to take control over the circulation and the Integrity of the Country, the new naira notes, will commence by Dec 15,2022, to Jan 31,till fully circulated when the existing Currencies shall seize to be legal tender.
Barely forty – eight hours after Governor Emefiele announcement to members of the public, Minster of Finance, Budget and National planning Zainab Ahmad disagreed with the claim that if such policy is been implemented, the redesigning would portend great consequences for the Nation and its Economy.
She further said they were not informed at the Ministry of Finance by CBN on the plan to redesign the Currency and can not comment on it as regards merit.
Emefiele made it clear that the actions was taken to control the Currency in circulation just as he posited that the bulk of the Nations note was outside the bank Vault and the CBN will not allow the situation to continue.
In an interview by Channel Television with Barrister Kola, an Economist, and CEO,he said and I quote “coming shortly after the announcement of the naira redesign Policy, it sends a signal that central bank of Nigeria wants to reduce freelance in cash and want to Accelerate the Digitalization of the Economy.
The Governor who announced this at the press briefing in Abuja yesterday said that the exercise would affect the upper denomination :#200,#500,and #1,000.
According to him, the new notes will be released to the general public on Dec 15, 2022, to Jan 31, and thus resolution was seen as a motion of urgent public importance.
However in recent times, Currency management has faced several daunting challenges that have continued to grow in Scale and Sophistication with attendant and Unintended consequences for the Integrity of both the Country and CBN.
He further said, “on the basis of these trends, problems, and facts are in line with section 19 Subsections A and B of the CBN act 2007, the CBN Management sought approval of President Muhammad Buhari to redesign, produce and circulate new series of bank note at #100,#200,#500 and #1,000 levels.
Commenting on the redesigning of naira notes, Former Economic Adviser and Chief Executive Officer Of National Planning under President Olusegun Obasanjo, Prof. Magnus Kpakol, said the exercise would only come at a cost, adding that the Apex bank must have considered the cost of the current situation to the Economy.
In his words, redesigning the Currency is not a bad idea and Certainly, the CBN must have had a tangible reason to have taken such actions. It could be targeted at those who have stashed a lot of cash and may want to use it to put pressure on the Currency in the Foreign Exchange Market.
Reacting to this news, Prof. Uche Uwaleke President Association of Capital Market Academics of Nigeria (ACMAN), said “I think the decision to replace some naira denominations with new ones will be positive for the Economy in the medium to long term because it will help curb black money and corruption.
Emefiele concluded by pleading to the general public to note that the present naira notes remain legal tender and should not be rejected as a means of exchange for the purchase of goods and services.