The CBN, branch controller, Mrs, Oyoburuoma Boma, disclosed
this to newsmen in Owerri, at the CBN sensitization programme at the relief
Market in Imo.
The branch Controller said by Section 17 of the CBN Act 2007
gives the CBN the sole right to issue naira notes and coins.
However, the CBN urged the citizens to make use of
alternative methods of deposit of the old naira notes through the POS,
Electronic transfer, USSD, and Internet Banking among others. It also insisted
that the deadline remains 31st of January, 2023 for the deposit of the old
naira notes.
According to the CBN, “As we are all aware, Central Bank is
allowed by law to issue and manage the
Nigerian Legal tender currency, popularly known as the Naira
Section 17 of the CBN Act 2007 gives the CBN the sole right to issue naira
notes and coins.
“When we issue new notes, Nigerians use them to buy goods
and services.
As the notes change hands, they become dirty, torn,
mutilated and soiled. The Central Bank must remove the damaged notes and
replace them with new ones.
“As time goes on, more serious issues and challenges may
arise, necessitating the Bank to change and replace the old notes entirely. The
global best practice encourages the redesign of currency notes every 5 to 8
years. The challenges and issues in our case are: Banknote Hoarding Shortage of
clean and fit bank notes Counterfeiting Large Volumes of Currency in
Circulation outside Bank vaults High cost of Cash Management Abuse, spray and
sale of the Naira.
To mention a few.
“These issues and challenges made the Central Bank change
and redesign the higher denominations of N1000, N500 and N200 bank notes. Now
that we have changed and redesigned these higher denominations, we are here in
the relief market today, to explain and say that;
Only three of the current eight. denominations were
redesigned, namely the N1,000, N500, and N200 banknotes. All other banknotes-
N5, N10, N20, N50, and N100 are not affected. The decision of the CBN to
redesign 3 denominations of the naira is not targeted at any group or persons.
“President Muhammadu Buhari launched the new naira bank
notes on November 23, 2022.
The current N1,000, N500, and N200 banknotes that are being
phased out will circulate side by side with the redesigned N1,000, N500, and N200
banknotes till January 31, 2023.
“The banknotes that are being phased out remain legal tender
till January 31st, 2023. They should not be rejected as a means of exchange for
the purchase of goods and services. Visit your commercial bank to deposit the
old notes. Those without bank accounts are encouraged to visit banks of their
choice to open accounts. Account opening is easy. You can also approach the
nearest CBN authorized agent to make your deposit if you reside in a rural
area.”
“There is no limit to deposits of N1,000, N500, or N200
banknotes an individual or corporate body can make, during the transition
period that expires on January 31st 2023. For now, there are no charges on bank
deposits. I repeat, no charges on bank deposits for now.
“There is no outright exchange of new banknotes for old
N1,000, N500, N200 deposited in commercial banks. However, we are encouraged to
explore other payment channels such as eNaira, POS, Electronic transfer, USSD,
Internet Banking, Mobile money operators and agents, for banking transactions,”
CBN said.
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