“Only 15 percent of the currency are in the Banks while over 80 percent are out there in circulation or hoarded”
Central Bank of Nigeria (CBN) has said that redesigning the larger denominations of the Naira would curb the circulation of fake currencies which affects the economy.
This was just as the apex bank described the redesigned Naira notes and the eNaira as very necessary and called on the marketers to ensure they deposit the old currencies with them before the 31st of January 2023.
Speaking at the event which took place on Thursday at the grains market in Kano, Umar Ibrahim Biyu, Branch Controller of the CBN said that everyone is allowed to deposit any amount within the estimated period without any charges.
The Naira is supposed to be redesigned after every five years as provided by the law, but the last time the Naira was changed is eighteen years ago. This makes it necessary for the Naira to be changed.
According to him, the redesigning of the currency is necessary as provided by Section 2b of the CBN Act. Currencies are due to be renewed every five years but the last time the Naira was renewed was eighteen years ago.
This has therefore given room for fake currencies, lesser money in the bank with over 80 percent in circulation in the public and reduced financial inclusion declaring that the redesigning of it serves as a major step in fighting corruption in the country.
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“Only 15 percent of the currency are in the Banks while over 80 percent are out there in circulation or hoarded.
“This has reduced financial inclusion even with the people’s oriented policies of the government,” he stated.
He also assured the public that there is no plan to introduce N2000 and N5000 notes while dismissing allegations against the new policy.
He dismissed the claims that the redesigned currency is substandard saying that the texture and quality are enhanced and well-secured.
He added that the color that is said to be coming off when rubbed with a slightly wet tissue is not abnormal because it is the reflection that a high-quality ink called interblio is used in minting it. He said even a brand-new DolLar note is like that.
“You should therefore return all the N200, N500 and N1000 denominations in your possessions. Those who have accounts should open eNaira accounts to ease transactions and those who don’t have accounts should quickly go to commercial banks and open accounts.
Responding on behalf of the marketers, the Chairman of the Dawanau International Grains Market Association, Alhaji Baba Wawo explained that their members at the market level are enlightened and have embraced cashless transactions.
However, the local farmers from who they purchase grains and other farm produce are not enlightened, all they know is cash.
He also noted that there is still poor mobile network across the country that can hinder the perfect implementation of the new policy.
They, therefore, seek the CBN to extend the enlightenment to those locals and seek the federal government to boost the mobile network across the country.
