Buhari Speaks About The New Naira Notes 

The CBN stated last week that it will redesign the N200, N500, and N1,000 notes in an effort to combat vote-buying and manage the quantity of money in circulation.

By Omotayo Olutekunbi

The Central Bank of Nigeria (CBN) intends to redesign and replace the N1,000, N500, and N200 notes by December 15; President Muhammadu Buhari has calmed concerns about the move by declaring the nation will benefit greatly from the process.

Buhari said he supported the CBN’s decision in a statement released yesterday by his spokesperson, Mallam Garba Shehu.

According to Buhari, the CBN’s justifications for the change in banknotes convinced him that the economy would benefit from a decrease in inflation, currency forgery, and the amount of excess cash in circulation. This was stated in a radio interview with journalists that was conducted in the Hausa language.

The president declared that the three months scheduled for the switch to the new notes was not a small window.

“People with illicit money buried under the soil will have a challenge with this, but workers, businesses with legitimate incomes will face no difficulties at all,” the statement quoted Buhari as saying.

The CBN stated last week that it will redesign the N200, N500, and N1,000 notes in an effort to combat vote-buying and manage the quantity of money in circulation.

At a press conference in Abuja, CBN Governor, Mr. Godwin Emefiele, said that the central bank had decided to redesign the bank notes. He claimed that Buhari had given his permission for the alteration.

The new banknotes will go into circulation on December 15, according to Emefiele. The rising danger to financial stability, the deteriorating lack of clean and suitable money, and the resulting image issue for the central bank were also being addressed, according to him. These factors were also taken into consideration.

Statistics suggest that more than 80% of the cash in circulation is not in commercial banks’ vaults, according to Emefiele, who claimed that there is widespread hoarding of naira notes by the general population. He said that as of September 2022, there was a total of N3.2 trillion in circulation, of which N2.73 trillion was outside the bank vaults. He deemed this development unacceptable.

Since the announcement, the Naira has increased in value versus the dollar on the black market from N770 to N795.