“He explained that the decision to redesign the notes was because the “CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes.”
The Central Bank of Nigeria ( CBN) has announced plans to redesign Naira notes.
Governor of the apex bank, Godwin Emefiele made the announcement in Abuja on Wednesday.
He said the bank had obtained approval from President Mohammadu Buhari to redesign N200, N500, N1000 notes, adding that the new notes will come into effect by December 15.
Emefiele said: “Bank charges for cash deposit are suspended with immediate effect.”
He explained that the decision to redesign the notes was because the “CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes.”
He noted that “although global best practice is for central banks to redesign, produce and circulate new local legal tender every 5–8 years, the Naira has not been redesigned in the last 20 years.On the basis of these trends, problems, and facts, and in line with Sections 19, Subsections a and b of the CBN Act 2007, the Management of the CBN sought and obtained the approval of President Muhammadu Buhari to redesign, produce, and circulate new series of banknotes at N100, N200, N500, and N1,000 levels.
“In line with this approval, we have finalized arrangements for the new currency to begin circulation from December 15, 2022. The new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall seize to be legal tender. ”
Emeifele further stressed that “the present notes remain legal tender and should not be rejected as a means of exchange for purchase of goods and services.”