Naira Redesign: CBN Receives N165 Billion Old Notes, Begins Circulation of New Ones

Naira Redesign: CBN Receives N165 Billion Old Notes, Begins Circulation of New Ones

  • The Central Bank of Nigeria has reported the receipt of N165 billion old notes after report said the new notes are already in circulation
  • The bank stated that this was due to its plan to stop circulating old notes effective January 31, 2023
  • The bank said about N2.7 billion are outside the banking system as Nigerians hoarded the naira significantly

The Central Bank of Nigeria (CBN) started circulating the new naira notes after President Muhammadu Buhari unveiled them on Wednesday, November 23, 2022, in Abuja.

The apex bank also stated that it had received a total of N165 billion of the old notes since the announcement of its plans to introduce the new naira notes and asked Nigerians to deposit old ones.

CBN, New notes, old notes
CBN governor, Godwin Emefiele Credit: NurPhoto/Contributor
Source: Getty Images

Amount received higher than expected

CBN's director of currency, Rasheed Adam, said this during the post-Monetary Policy Committee meeting of the bank in Abuja on Wednesday, November 23, 2022.

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The bank said the plan to redesign the naira is to control the currency in circulation.

The figure quoted by Adam exceeds the bank's expectations a month after making the announcement.

Adam stated that only a handful of Nigerians had come forward to deposit old notes in their possession despite the CBN's waivers, saying there would be no extension beyond January 31, 2022, deadline.

According to reports, CBN also said that about N2.7 trillion are outside the banking system.

Why CBN redesigned the naira

The governor of CBN, Godwin Emefiele, announced on October 26, 2022, that the bank would embark on redesigning some denominations of the naira notes.

He mentioned that the redesigns were to control currency circulation and would affect N200, N500, and N1000 notes.

The bank said the existing naira notes would circulate together with the new ones until January 31 next year, when they cease to be legal tender.

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Emefiele stated that Nigerians significantly hoarded the naira notes, with data showing 80 per cent of the currency outside bank vaults.

New notes spikes demand for naira, exchanges for N730 per dollar in the parallel market reported that amid the unveiling of the new naira notes on Wednesday, November 23, 2022, by President Muhammadu Buhari, the local currency has gained about N40 against the US dollar.

Checks by along the Allen Avenue and Ogba axis in Lagos reveal a massive demand for the naira, leading to its appreciation.

Currency dealers in the areas visited said people are asking if the new notes are already available, and if not, they are ready to trade existing ones.


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