Again, CBN Defends Decision to Redesign Naira Notes As Traders Continue to Reject It Few Days to Deadline

Again, CBN Defends Decision to Redesign Naira Notes As Traders Continue to Reject It Few Days to Deadline

  • The Central Bank of Nigeria has again come out to defend its decision to redesign higher denomination of naira notes
  • The redesigned notes which include 1000, 500, and 200 started circulating on December 15, 2022, and will fully replace the old notes in 19 days
  • However, not only has it been difficult for Nigerians to physically see the currency traders at the market continue to reject it

The Central Bank of Nigeria (CBN) has again defended the new naira notes as Nigerians continue to reject the notes.

Shamsudeen Imam, Senior Manager in Charge of Currency Operations at the CBN who led a sensitization walk across at Gombe International Market explained to traders that the redesign of Naira notes will reduce abduction and other violent crimes in the country.

He also stressed that the CBN's decision to redesign the new naira notes will reduce the quantity of money in circulation and prevent criminal activities.

CBN New notes banks traders
Many traders continue to reject the new naira note Photo credit: @cbn
Source: Getty Images

He assured that the redesign of the Naira notes as a smart move that would benefit the economy.

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You will recall that the CBN in October 2022 announced the redesign of the N200, N500, and N1000 notes.

The apex bank also announced January 31 as the deadline for the withdrawal of old notes from circulation.

Despite widespread criticism, the CBN has always insisted that the policy was the best option for the country's economy, Vanguard reports

He said:

“It will address the issue of terrorism, kidnapping, because there is a lot of money in circulation before, and the kidnappers are using that opportunity to collect ransom from people.”

“Globally, currencies are redesigned every five to eight years, but for Nigeria, it’s long overdue. Some of our currencies have stayed for 14 to 20 years, so it’s the right time to redesign our currency.”

Traders reject new naira notes

Meanwhile, at Niger state traders have continued to reject the new naira notes a few days before the final withdrawal of the old Naira notes from circulation.

Traders who are aware of the new notes told Niger Branch Controller, Ademola Mohammed Saheed, during a sensitization work at the Ultra Modern Kure Market in Minna, that it has not been easy transacting with the new currency, especially with fellow traders in the rural areas, who have continued to reject the new notes.

The Punch added that the traders told the CBN head that banks and ATMs across the state are still dispensing the old banknotes thereby forcing them to be transacting their businesses with the old notes.

Experts predict naira exchange rate to US dollar in 2023

In another report, revealed that the Nigerian currency naira had a tough 2022 trading against the dollar and other foreign currencies.

Experts have taken turns making predictions for the new year, and they feel it will be either good or more troubles.

The federal government in its 2023 budget set the naira to the dollar exchange rate at N435.57/$ for 2023.


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