Godwin Emefiele, governor of the Central Bank of Nigeria
(CBN), says N1.9 trillion worth of naira notes have been returned to banks so
far — with N500 billion more to go.
He was silent on how much cash will be left outside the
banking system with the naira redesign.
The bank on Sunday extended the deadline for the swap of the
old notes for new ones at the commercial banks from January 31, 2023 to
February 10.
Those who still have the old notes after February 10 will
enjoy a seven-day “grace period” to deposit them directly with the CBN.
After February 17, the old notes will cease to be legal
tender, the governor said.
In a press release on Sunday, Emefiele said: “Available data
at the Central Bank of Nigeria has shown that in 2015, Currency in Circulation
was only N1.4 trillion. As at October 2022, currency in circulation had risen
to N3.23 trillion; out of which only N500 billion was within the Banking
Industry and N2.7 trillion held permanently in people’s homes.
“Ordinarily, when CBN releases currency into circulation, it
is meant to be used and after effluxion of time, it returns to the CBN thereby
keeping the volume of currency in circulation under the firm control of the
CBN.
“So far and since the
commencement of this program, we have collected about N1.9 trillion; leaving us
with about N900 billion.”
He said to achieve effective distribution of the new
currency, the CBN has took a number of steps.
“We held several meetings with our Deposit Money Banks
(DMBs) arid provided them with Guidance· Notes on processes they must adopt in
the collection of old notes and distribution of the New Notes to all Nigerians.
These includes specific directives to DMBs to load new notes into their ATMs
nationwide to ensure an equitable/transparent mechanism for the distribution of
the new notes to all Nigerians,” he said.
“We commenced a nationwide sensitization through the Print
and electronic media to create an awareness on the redesigned notes to
Nigerians including collaboration with the National Orientation agency to reach
all Nigerians across multiple channels.
“We deployed 30,000 Super Agents nationwide to assist in our
Cash Swap initiative in the hinterlands, rural areas, and regions underserved
by banks in the Country to ensure that the weak and vulnerable ones amongst us
can swap/ exchange their old notes.
“We deployed all our staff, particularly the Assistant
Directors, Deputy Directors and Directors· in Abuja to proceed to all CBN
branches Nationwide to join the mass mobilization campaign and monitoring
programs, working with the Deposit Money Banks , agents and our Branch
controllers across the 36 states of the Federation. This is meant to ensure
compliance with all our guidelines already issued for smooth implementation of
the program. Although we have received some reports of breaches by some bank
branches, we have agreed with Executive Chairmen of the EFCC and ICPC to assist
us, by sending their staff to all CBN and DMB branches nationwide to join in
monitoring the implementation of these guidelines. The aim is to ensure
compliance with the laid down guidelines.
“We are happy that so far, the exercise has achieved a
success rate of over 75 percent of the N2.7 trillion held outside the banking
system. Nigerians in the rural areas, villages, the aged and vulnerable have
had the opportunity to swap their old notes; leveraging the Agent Naira Swap
initiative as well as the CBN Senior staff nationwide sensitization team
exercise.
“Aside from those holding illicit/ stolen Naira in their
homes for speculative purposes, we do aim to give all Nigerians that have Naira
legitimately earned and trapped, the opportunity to deposit their legitimately
trapped monies at the CBN for exchange.”
FIRST CURRENCY
REDESIGN IN 19 YEARS
Emefiele thanked President Muhammadu Buhari, who he
described as an “incorruptible leader”, for approving the naira redesign
programme.
“I’ve just ended a meeting with Mr President. The purpose of
the meeting is to provide Mr President with updates about the implementation
status of the CBN currency redesign program currently going on across the
Federation,” he said.
“First, I’d like to continue to thank Mr President for
giving the CBN the approval to embark on this ambitious program because, like I
had said in the past, the Central Bank of Nigeria hasn’t had the opportunity to
embark on such currency redesign program in last 19 years and indeed, let me
emphasize that only an incorruptible leader of the President’s stature can give
such approval to the CBN.
“From the on-set
(outset) of this currency redesign program, we made it clear that for 19 years,
the CBN hasn’t been able to conduct this important aspect of its mandate,
whereas this should normally have been be done within a 5-8 years window.
“Our aim is mainly to make our Monetary Policy Decisions
more efficacious and like you can see; we’ve started to see inflation trending
downwards and exchange rates relatively stable. Secondly, we aim to support the
efforts of our Security agencies in combating Banditry and Ransom taking in
Nigeria through this program and we can see that the Military are making good
progress in this important task in Nigeria.”
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