Naira Redesign: N900bn Still In People’s Homes – CBN Governor

The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefile, has the approval from President Muhammadu Buhari for a 10-day extension from the earlier deadline of January 31, 2023 to February 10, 2023, so that Nigerians who still hold the old naira notes can deposit them in their banks, just as he revealed that a total of N900 billion is still in the custody of humans.

The apex bank announced a grace period of seven days starting from February 10 to February 17, 2023, to allow Nigerians to deposit their old notes with the CBN after the February deadline when the old currency would no longer be legal tender, in accordance with Articles 20 paragraph 3 and 22 CBN Act.

Announcing the extension, Mr Emefiele said: “An extension of the deadline by 10 days from January 31, 2023 to February 10, 2023, to allow for the collection of more old banknotes legally owned by Nigerians and greater success cash exchange in our rural communities after which all old banknotes outside the CBN will lose their legal tender status.

“Our CBN staff currently mass mobilizing and monitoring, along with EFCC and ICPC officials, will work together to achieve these objectives.

There will be a seven-day grace period commencing February 10 to February 17, 2023, in accordance with Sections 20(3) and 22 of the CBN Act, allowing Nigerians to deposit their old notes with the CBN after the February deadline when the old coin would have lost its legal tender status.”

He added: “Apart from those who have illicit/stolen naira in their homes for speculative purposes, we aim to give all Nigerians who have legitimately earned and trapped naira the opportunity to deposit their legitimately captured money with to deposit the CBN for exchange. .”

He appealed to all Nigerians to cooperate with the Central Bank of Nigeria to ensure the smooth implementation of this very important program.

Rating the exercise, Mr. Emefiele said: “So far and since the start of this program we have raised approximately N1.9 trillion; leaving us with approximately N900 billion.

In order to achieve effective distribution of the new banknotes, Mr. Emefiele pointed out that the CBN has taken many steps, such as holding several meetings with depository money banks (DMBS) and providing guidance on the processes they must follow in collection of old banknotes and distribution of the new banknotes for all Nigerians.

He said: “This includes specific guidelines for DMBs to load new notes into their ATMs across the country to ensure a fair/transparent mechanism for the distribution of the new notes to all Nigerians.

“We have initiated nationwide awareness raising through print and electronic media to raise awareness of the redesigned notes for Nigerians, including working with the National Orientation Agency to reach all Nigerians through multiple channels.

“We have deployed 30,000 super agents across the country to assist with our cash swap initiative in the hinterlands, rural areas and regions where the country’s banks are lagging to ensure that the weak and vulnerable among us get their old notes can exchange/redeem.

“We have deployed all our personnel especially the assistant directors, deputy directors and directors in Abuja to go to all CBN branches across the country to participate in the mass mobilization campaign and monitoring programs, in coordination with the depository banks, agents and our branch controllers in the 36 states of the Federation.

“This is to ensure compliance with all of our guidelines already issued for the smooth running of the program.

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“While we have received some reports of breaches by some bank branches, we have agreed with executive chairmen of the EFCC and ICPC to assist us by sending their staff to all CBN and DMB branches across the country to watch the implementation of these guidelines.”

The CBN governor reiterated that the aim is to ensure adherence to established guidelines, noting that “we are pleased that the exercise has so far achieved a success rate of over 75 percent of the N2.7 trillion held outside the banking system.”

He added that rural, village, elderly and vulnerable Nigerians have had the opportunity to exchange their old notes; utilizing the agent naira swap initiative and the exercise of the CBN Senior staff in the national awareness team.

Reiterating the reasons behind the naira redesign program, Emefiele said that the aim is to make monetary policy decisions more effective and that inflation had already started to trend downward and exchange rates had relatively stabilized.

Also, he explained, the measure is intended to support the efforts of the security services in fighting banditry and ransom-stealing in Nigeria, and that the army is making good progress in this important task in the country.

He noted: “Data available at the Central Bank of Nigeria has shown that in 2015 the currency in circulation was just N1.4 trillion. As of October 2022, the currency in circulation had risen to N3.23 trillion; of which only N500 billion was in the banking sector and N2.7 trillion permanently in people’s homes.

“Normally, when CBN puts currency into circulation, it is meant to be used and over time it returns to the CBN, keeping the volume of currency in circulation under the firm control of the CBN.”

He thanked President Buhari for giving the CBN the approval to embark on the program, stressing that “the Central Bank of Nigeria has not had the opportunity to embark on such a currency redesign program in the past 19 years and let me indeed emphasizing that only an imperishable leader of the caliber of the president can give such approval to the CBN.”