Naira Redesign Yielding Results as Cash Deposits Rise—CBN

By Aduragbemi Omiyale

The Central Bank of Nigeria (CBN) has disclosed that its decision to redesign the Naira notes, notably N200, N500, and N1,000, is already yielding positive results.

In a notice, the apex bank stated that since it made the announcement on October 26, 2022, it has witnessed an increase in cash deposits at commercial banks.

Last month, the Governor of the CBN, Mr Godwin Emefiele, said the look of the banknotes would be changed to tackle inflation and curb counterfeiting. This put pressure on the Naira in the currency exchange market as the demand for the United States Dollar increased.

In the disclosure signed by the Director of Corporate Communications of the CBN, Mr Osita Nwanisobi, the bank said this policy was already working wonders, noting that the idea for the action was also to protect Nigerians in the unbanked, underserved, and rural areas of the country.

“The CBN remains committed to the seamless implementation of the initiative to ensure the achievement of its objectives to preserve the integrity of the local legal tender by reducing the significant amount of cash outside the banking system and its use in criminal activities, curtail counterfeiting, and promote financial inclusion, amongst others,” a part of the notice said.

The central bank has advised the banking public in rural and/or underserved areas to enquire about options for depositing their current N200, N500, and N1,000 notes, wallet/account opening processes, financial access points, etc., at its branches in the 36 states of the federation.

“Agent locations across the country have been fully enabled for BVN registration, opening banking accounts/wallets & e-Naira wallets, electronic card distribution, and cash deposit, among others.

“Due to the policy, the agents have also been accorded priority to enable them to deposit cash collections through bank branches across the federation,” it added.

The apex bank said to ease the stress caused by the rush for cash deposits; it has partnered “with relevant agencies and other stakeholders in the financial system in its execution, particularly ensuring that vulnerable citizens are not disenfranchised.”

The CBN promised to “monitor developments and issue updates to the banking public on the implementation of the Naira redesign policy as may be necessary.”