The newly redesigned naira notes will enter circulation on Thursday (today), with Deposit Money Banks distributing them to customers through over-the-counter payments, Punch reports.
This came roughly three weeks after the President Muhammadu Buhari unveiled the new bills during a weekly Federal Executive Council meeting in Aso Rock Villa.
The President unveiled the redesigned notes in denominations of N200, N500, and N1,000.
Godwin Emefiele, Governor of the Central Bank of Nigeria, announced in October that the apex bank would issue redesigned naira notes by December 15, 2022.
He also stated that the old notes would no longer be considered legal tender on January 31, 2023.
Emefiele stated that redesigning naira notes would help to reduce counterfeit notes and ransom payments to terrorists and kidnappers.
The CBN governor expressed concern that Nigerians were hoarding 85 percent of the total currency in circulation.
As a result, he stated that redesigning the local currency would help to mop up the currency outside the banking sector, adding that close to N2.75tn of the approximately N3.3tn in circulation were outside the banking sector.
Meanwhile, top commercial bank officials confirmed to our correspondent on Wednesday that they had received the new notes from the CBN a few days ago, and that the redesigned currency would be available to their customers on Thursday (today).
“We received the funds (new notes) two days ago. Our head office has dispatched the funds to various area offices across the country. Our allocation will be picked up by my branch at a nearby area office. We will begin issuing the new notes to our customers on Thursday,” said a top official of a commercial bank who spoke to one of our correspondents on the condition of anonymity on Wednesday because he was not authorized to speak on the subject.
Several banking sources confirmed that the new notes had arrived and were being stored in vaults.
They confirmed that the new notes would be distributed to customers in banking halls starting Thursday.
“The new notes have arrived, and they will be available to customers starting tomorrow (Thursday),” a Polaris Bank official who requested anonymity told The PUNCH.
“We have the funds from the CBN now,” said a manager at First Bank Plc who was not authorized to speak on the matter. It arrived a few days ago, but it will be available to customers starting tomorrow (Thursday).”
However, some bank officials claimed that the amount of new notes made available by the CBN to the various banks was small.
According to them, because the amount of available new notes is still small, most OTC payments will have to be made using the old notes.
“The amount given to us is insignificant in comparison to what we require. For example, the resources available to my branch are less than N1m. This is insignificant in comparison to what we require. But I believe it will grow over time,” an FCMB official in Lagos who requested anonymity told one of our correspondents.
Moreover, multiple banking sources confirmed that they have begun reconfiguring their ATMs to recognize the new naira notes.
“Most banks have begun reconfiguring their ATMs so that they can identify the new notes of N1000, N500, and N200,” said a top bank executive.
Meanwhile, CBN findings indicate that the total amount to be released into circulation may be less than the amount previously in circulation.
According to a top CBN official who spoke on the condition of anonymity, the CBN intends to increase electronic payments rather than cash transactions.
According to him, the CBN will not print a large number of new notes.
“The CBN has been disbursing new naira notes to banks but does not intend to disburse large quantities because it wants to increase electronic payments,” he said.
“Don’t expect the new notes to circulate widely in the economy. There are various electronic channels that people should use.”
