CBN has redesigned N200, N500, and N1000 notes with enhanced security features
The Central Bank of Nigeria (CBN) just announced that it will start circulating redesigned N200, N500, and N1000 naira notes on December 15, 2022.
On Wednesday, Governor Godwin Emefiele disclosed that the Nigerian currency will be re-designed following approval by the Federal Government. The newly designed money is meant to be more aesthetically pleasing and reflect better on Nigeria as a country.
In a bid to encourage digital transactions, bank charges for cash deposits have been suspended with immediate effect.
The new and current naira notes will continue to be legal tender together until January 31, 2023, when the old currencies will stop being legal tender.
“Currency management is one of the key functions of a Central Bank, as it is enshrined in Section 2 (b) of the CBN Act 2007. Indeed, the integrity, efficiency and efficacy of a local legal tender are some of the hallmarks of an excellent central bank.”
Traditionally, currency management had been an issue facing the Central Bank of Nigeria and the country as a whole. But in recent years, it’s grown to affect more people and businesses, with consequences that have continued to grow in size and scope.
“CBN recorded higher rates of counterfeiting in recent years. Particularly at the N500 and N1000 denominations. Globally, this is a best-practice for central banks to redesign, produce, and circulate new local legal tender every 5–8 years. However, the Naira has not been redesigned for the last 20 years or so.”
This redesign was based on trends, problems, and facts that have been faced by the bank in the past. The CBN encountered a problem with counterfeit notes at the N100 and below level, which is why someone got the approval of President Muhammadu Buhari to create new series of banknotes. There are new bills at the N100, N200, N500, and N1,000 levels.
“In accordance with this approval, we have finalized arrangements for the new currency to begin circulation on December 15, 2022. The new and existing currencies will remain legal tender and circulate together until January 31, 2023, when the existing currencies will cease to be legal tender.”
What you should know
All banks are currently holding the existing denominations of the currency, and as of now, it’s been reported that these will be sent back to the CBN as soon as they come in. The new currency has been designed, but it will be sent to banks on a first-come-first-served basis.
When the new currency is officially released, customers will have to start depositing it into their bank accounts. But don’t worry! Banks are also expected to print the old currency so that people will still be able to withdraw it up until next December.
All banks are expected to maintain their currency processing centers through the weekends for one week in order keep up with all customers who will be returning their cash.
Bank accounts originally set up to transact in Naira will now be able to accept and give out Euro-denominated currency. Therefore, with immediate effect, the bank (DMBs) will no longer charge a customer for depositing cash into or paying it out from their account. It is important for members of the public to note that the new notes are legal tender and should not be refused as a means of exchange for the purchase of goods and services.