The Central Bank of Nigeria (CBN) has announced that it will carry out a redesign on the ₦200, ₦500, and ₦1000 notes, which will begin circulation on the 15th of December, 2022.
The announcement was made by CBN’s governor, Godwin Emefiele, in a press briefing on Wednesday, 26th October. He further stated that the current Naira notes for these denominations will cease to be legal tender by January 31st, 2023.
“The Management of the CBN sought and obtained the approval of President Muhammadu Buhari to redesign, produce, and circulate new series of banknotes at ₦200, ₦500, and ₦1000 levels,” Emefiele said.
Emefiele gave a number of reasons that warranted the redesigning and circulation of the currency, including the move to reduce the number of counterfeits as well as improve the percentage of currency under the control of the Apex Bank.
“Indeed, recent development in photographic technology and advancements in printing devices have made counterfeiting relatively easier,” Emefiele said. “In recent years, the CBN has recorded significantly higher rates of counterfeiting, especially at the higher denominations of ₦500 and ₦1,000 banknotes.”
Emefiele further went on to support the move by claiming that the Naira has not been redesigned in 20 years and deviates from the global best practice of redesigning and reproducing notes in a 5-8 year span. He also stated that the move is very likely to strengthen the Naira but claims it won’t happen with total ease.
“This trend of lots of money out of the bank vault is unacceptable, we want to have a firm grip on the money supply in Nigeria,” Emefiele further stated.
Individuals who own the current banknotes can start depositing them into their bank accounts in preparation for the circulation of the new notes by December.
Emefiele also added that all Deposit Money Banks that currently possess the existing banknotes should return the currency back to the CBN as soon as possible, stating that the redesigned notes will be released to the banks on a first-come-first-serve basis.