The Senate has recommended the Central Bank of Nigeria (CBN) to postpone until June 30th, 2023, the deadline for the phase-out of the old N1,000, N500, and N200 notes.
The advice comes in response to a motion made by Senator Ali Ndume of Borno South to raise awareness of the deadline on January 31.
Given the “few” banks in Borno and Yobe states and the “inability” of residents un these states to deposit the old notes in time to meet the deadline, he claims that the CBN’s notice is too short.
Godwin Emefiele, the CBN Governor, announced the redesign of the three bank notes on October 26, 2022, stating that both the new and old currencies will continue to be accepted as legal money and circulate side by side until January 31, 2023.
The apex bank believes the redesigned notes will limit cash in circulation and therefore restrict the deplorable activities of ransom-demanding kidnappers as well as politicians set on rigging the upcoming elections.
President Muhammadu Buhari, in November, unveiled the redesigned naira notes as proposed by the CBN, marking the first time in 19 years since Nigeria’s last currency redesign.
The CBN Governor, Godwin Emefiele maintained that there would be heavy restriction on the volume of cash that people can withdraw over the counter, as it works with the Economic and Financial Crimes Commission (EFCC) to monitor the purpose of any heavy transactions.
The redesigned currency note he asserts can never be counterfeited, adding that to forestall such occurrence, the CBN will redesign the notes after every five to eight years.
Economic Concerns
The World Bank
Last week, the World Bank expressed concern over the economic impact of the recent naira redesign on Nigerian households and businesses.
“At present, households and firms already face elevated financial pressures from prolonged, high inflation, recently compounded by external food and fuel price shocks, and the severe floods, and phasing out existing naira notes over a short time period may add to their challenges,” it stated.
The global financial institution stated that the timing and short transition period of the Nigerian naira redesign may weigh on economic activity.