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‘Unfounded speculation’ — CBN says no plan to phase out redesigned naira notes

 


The Central Bank of Nigeria (CBN) says it is not contemplating the withdrawal of the recently redesigned naira notes.

 

A report had emerged that the apex bank may phase out the new notes over scarcity.

 

Isa Abdulmumim, CBN spokesperson, in a statement on Sunday, clarified that such speculations were unfounded.

 

“The attention of the Central Bank of Nigeria (CBN) has been drawn to a fake news item circulating in the media, particularly in the social media space, suggesting that the bank is contemplating the withdrawal of the recently redesigned N1000, N500 and N200 currency banknotes from circulation,” he said.

 

 “We wish to state emphatically that such speculation is unfounded and a ploy by some interests to cause panic among members of the public.”

 

Abdulmumin said the new and old currency notes “have been circulating side by side just as the bank has been taking delivery of a good quantity of the redesigned bank notes from the Nigerian Security Printing and Minting Company (NSPMC) Limited”.

 

“Furthermore, we are committed to supplying the approved indent for the smooth running of the economy,” he said.

 

 “We, therefore, urge members of the public to disregard any report suggesting a phase-out of the redesigned currency.

 

“For the avoidance of doubt, the redesigned and old notes will continue to be accepted as legal tender.

 

“They will circulate side-by-side for transactions ahead of the December 31, 2023 deadline, when the old N1000, N500 and N200 banknotes will eventually be phased out.”

 

In October 2022, Godwin Emefiele, CBN governor, announced the plan to redesign the naira to control money supply and aid security agencies in tackling illicit financial flows.

 

The redesigned naira notes were unveiled on November 23, 2022.

 

The deadline for the implementation of the policy was fixed for January 31, 2023, but it was further extended to February 10.

 

However, on March 3, a Supreme Court judgment invalidated the naira redesign policy introduced by the apex bank.

 

Delivering judgment in a suit instituted by three states of the federation, seven-member panel of the apex court held that the old N200, N500 and N1000 notes remain legal tender until December 31, 2023.

 

About two weeks after the court ruling, the CBN complied with the directive, ending the back-and-forth with the sole usage of the redesigned bank notes.

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