Where are the new notes?

• Published date: 15 January 2023
• Publication title: Nigeria - The Nation

Unless the Central Bank of Nigeria (CBN) reviews its deadline for Nigerians to bid bye to the extant currency notes in circulation, it is fast becoming obvious that its January 31 deadline is unrealistic. The apex bank had shocked Nigerians when, on October 26, 2022, it announced its intention to redesign the currency. CBN governor, Godwin Emefiele, had said then that the action became necessary to enable the bank take control of the currency in circulation. He was apparently not comfortable with the fact that the bulk of the currency notes in circulation was outside banks' vaults.

The redesign, according to him, would affect the highest denominations of N200, N500 and N1,000 notes and the new notes would be in circulation by December 15, 2022, alongside the present notes, while the old ones would cease to be legal tenders from January 31, this year.

'As you all may be aware, currency management is a key function of the Central Bank of Nigeria, as enshrined in Section 2 (b) of the CBN Act 2007. Indeed, the integrity of a local legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy are some of the hallmarks of a great Central Bank', Emefiele said. He added that 'In recent times, however, currency management has faced several daunting challenges that have continued to grow in scale and sophistication with attendant and unintended consequences for the integrity of both the CBN and the country.'

In the face of these daunting challenges, no one expects an apex bank properly so called to just fold its arms and allow such a situation to continue.

Indeed, a situation where the country's currency was easily counterfeited is bad for the economy. Yet, this was the experience with the current Naira notes; a thing that is being facilitated by the advancement in technology. Second, only Nigerians who want to deceive themselves would say they are not aware that a lot of the country's currency notes was being hoarded in some mansions, farms, water tanks, etc. Or, have we forgotten the case of the $50 million cash stashed in fire-resistant cabinets behind a false wall in an apartment in Ikoyi, whose alleged owner denied ownership of the building? So, as it were, the money germinated in the place! There are many such fertile buildings, water and septic tanks producing such billions in the country whose owners would deny their ownership if discovered because they cannot explain how they came about the huge funds. We have seen...