This week, the Central Bank of Nigeria announced plans to redesign Naira notes, particularly the N200, N500, and N1000 denominations.
CBN Governor, Godwin Emefiele said the apex bank had secured approval from President Muhammadu Buhari to go ahead with the move.
The CBN further stated that redesign, production, and circulation of the new Naira notes will commence on December 15, 2022.
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While mixed reactions have greeted the announcement and move by the CBN, here is what the redesigned Naira notes would mean.
5 Things to Know About Redesigned Naira Notes
1. Your Money is About to Expire
This is happening for the first time in 20 years! Get ready your Naira notes starting from N100 to N1000 will get a new look from December 15, 2022.
And if you don’t change your current Naira note before January 31, 2022, you will be holding worthless paper.
2. There is Too Much Hoarded Cash
It’s too much in circulation and it appears the CBN needs to get everybody using the bank.
According to them, only about 470 billion Naira, out of the 3 trillion-plus total amount of Naira in the country is in Nigerian Banks.
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This means that more than 2.7 trillion Naira is outside of the banking system.
Cash, Cash, Cash is Nigeria’s king but electronic money is aiming for the throne.
3. Fake Naira Notes Are Everywhere
There are plenty of fake notes in circulation.
Current technological advances in printing and design mean that many people have been able to create their own Naira notes.
The Central Bank says they are starting to see plenty of fake N500 and N1000 notes.
4. The Poor might suffer
It’s going to be a logistical nightmare for many poor Nigerians who don’t have bank accounts to deposit their money.
This might increase the adoption of mobile banking but with tight deadlines, insufficient information, and lack of official identities, many rural people may not hear about it or be able to open bank accounts.
What will this mean for them?
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5. Tough Days Ahead for Political Moneybags
If this deadline works, the politicians keeping Naira inside uncompleted buildings aiming to buy votes in the February 2023 elections have to find a way to deposit their money in the banks in time.
You can trust the EFCC to be waiting for them.
Only time will tell the true effect of the redesigning of the naira notes.
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