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CBN threatens banks on new banknotes

The Central Bank of Nigeria (CBN) on Friday said that any commercial bank that failed to pay the new naira notes to customers would be fined N1 million per money box on daily basis.

CBN Governor, Mr Godwin Emefiele, made this known at a sensitisation organised for market women operating at Ayegbaju International Market, Osogbo, on the new naira notes, eNaira and other related matters.

Emefiele, represented by a CBN Deputy Director, Mr Adeleke Adelokun, said that the apex bank had printed enough naira notes, but observed that commercial banks were not collecting them.

“As at today, CBN has printed enough new naira notes of N200, N500 and N1,000.

“But, what we discovered was that most of the banks that are supposed to collect the new notes have not collected them. So we have put a sanction on the banks.

“Any bank that fails to collect the new notes from CBN will pay N1 million as sanction per box per day and the amount they are to pay now will depend on the number of days they have not collected the notes,” he said.

Emefiele said that the CBN team from Abuja, which had been in Osun since Wednesday, had been going round commercial banks in the state, meeting with their officials to ensure that they were paying out the new naira notes to customers.

He said that the team was at Ayegbaju market to sensitise the market women on the newly-redesigned naira notes and eNaira App as well as how they can subscribe to eNaira for their business transactions.

“We are here to educate you (the market women) on the new Naira notes and the need for you to turn in/deposit your old naira notes on or before Jan. 31 when the notes will cease to be a legal tender,” he said.

In her own remarks, the CBN Branch Controller in Osun, Mrs Madojemu Daphne, said that currency management had faced several challenges, hence the need for the redesign of the naira notes.

“Statistics shows significant hoarding of bank notes by members of the public, with N2.72 trillion out of the N3.26 trillion currency in circulation, as of June 2022, being outside the vaults of commercial banks and supposedly held by members of the public,” she said.

Daphine, who was represented by Mrs Adebayo Omosolape, said that the old N200, N500 and N1,000 notes would cease to be legal tender by Jan. 31.

CBN Information Clients Officer in Osun, Mrs Oluwatobi Rosiji, explained to the market women how to download the eNaira App and operate on their android phones.

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CBN embarks on nationwide sensitisation to new banknotes

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The Central Bank of Nigeria (CBN) has deployed members of staff to embark on sensitisation of Nigerians to the policies concerning the new banknotes, deadlines, distribution, and usage of the redesigned currency.

In Imo branch officials of CBN on Wednesday visited Owerri relief market to sensitise traders on the need to deposit their old notes in the banks before the January 31 deadline.

The exercise is part of efforts to introduce the newly-redesigned naira notes to the traders and urged them to accept them as legal tender.

Addressing the traders, the Branch Manager, Mrs Boma Oruwari, said that the banknotes that were being phased out remain legal tender till January 31, 2023.

She said that as such, they should not be rejected as a means of exchange for the purchase of goods and services.

According to her, the old notes were phased out for a variety of reasons, including shortage of clean and fit bank notes, counterfeiting, high cost of cash management and abuse of the naira.

“These issues and challenges made the Central Bank to change and redesign the higher denominations of N1,000, N500 and N200 bank notes.’’

In Ondo state, officials sensitised traders in the popular Oja Oba and Adedeji Markets to the economic benefits of the newly redesigned Naira notes.

The bank said that currency management in Nigeria had faced several challenges that had continued to grow in scale and sophistication with unintended consequences for the integrity of both the CBN and the country.

Speaking at the sensitization, the Akure Acting Branch Controller of CBN, Mr Samuel  Giwa, said  there was significant  hoarding of banknotes by some members of the public.

Giwa stated  that statistics  showed  N2.72 trillion out of the N3.26 trillion currency in circulation as of June 2022 was outside the vaults of commercial banks across the country, and supposedly held by members of the public.

According to him, the statistics  shows that 84.71 per cent  of currency in circulation are outside the vaults of commercial banks, with only 15.29 per cent in the CBN’s vaults.

He added that there  was  worsening shortage  of clean and fit banknotes with attendant negative perception of the CBN and increased risk to financial stability.

Mrs Emily Adesida, an official of Adedeji Market, appreciated the CBN for the sensitization, saying it was a good step toward a new economy.

At Wunti Market in Bauchi, CBN urged traders to embrace the policy of the redesigned Naira notes.

Mr Sulaiman Laido, acting Branch Controller, CBN, Bauchi, while speaking at the campaign urged traders to embrace the redesigned currency notes as the country’s legal tender.

He also reminded them that the old denominations would cease to be legal tender on January 31.

The acting controller who led the team, along with officials of commercial banks operating in Bauchi assured the traders that they would not be charged any fee irrespective of the amount they deposited in the banks.

“It will also help with better design and implementation of monetary policy as the country will have much more accurate data on money supply and monetary aggregate.

“We believe that this exercise will help in increasing financial inclusion, moving towards a more cashless economy and ensuring greater formalisation of the Nigerian economy.

“The currency redesign will also assist in the fight against corruption, as the exercise will rein in the higher denomination used for corruption, and the movement of such funds from the banking system could be tracked easily,” he said.

The National Orientation Agency (NOA) in collaboration with the CBN also embarked on public awareness campaign on the naira notes redesign across the 13 local government areas of Ebonyi.

The team had taken the campaign to Traditional Institutions, Churches, Mosques, schools and market places in the state.

The three redesigned denominations of N1, 000, N500 and N200 banknotes were unveiled on Nov. 23, 2022, by President Muhammadu Buhari.

Dr Desmond Onwo, NOA’s Director in the state said on Wednesday in Abakaliki, that the essence of the campaign was to properly educate the general populace on the new currencies.

Onwo said there was the need for the reorientation of Nigerians in order to promote cashless policy and checkmate illegal transactions among others.

“The idea of the new currencies was to reduce fake currencies and check expenditures among citizens.

“We urge the general public to deposit their old Naira notes in their bank accounts before the deadline of Jan 31,’’ he advised.

Mrs Anthonia Ekezue, the Central Bank of Nigeria (CBN) representative, said that the newly introduced currencies were aimed at stampeding counterfeits, reduce expenditures as well as tracking illegal transactions.

“The benefits of the currency redesign will help to control inflation as the exercise will bring the hoarded currency into the banking system, thereby, making monetary policy more effective.

“It will also assist in the fight against corruption as the exercise will rein in the higher denomination used for corruption, and the movement of such funds from the banking system can be tracked easily.

“Accept the new denominations and remember that the apex bank will not go back on the new currency policy. The old currencies will cease to be a legal tender by Jan. 31,’’ she said.

Ekezue urged traditional rulers to carry out the message and ensure that the people accept it as our national identity.

The Chairman of South-East Traditional Rulers, His Royal Majesty, Chief Charles Mkpuma urged CBN to ensure the new currencies were in circulation.

Mkpuma said that he had only seen N1, 000 of the new currencies since it was introduced.

Also speaking, Rev. Peter Chukwu of Abakaliki Catholic Diocese commended the Federal Government for redesigning the currencies.

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New banknotes available for collection, Emefiele tells banks

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The Central Bank Governor, Mr Godwin Emefiele, has called on commercial banks to approach the apex bank branches across the country to pick up the new naira notes.

Emefiele made the call when the apex bank took its sensitisation tour on the adoption of the newly redesigned naira notes to Computer Village, Ikeja, on Wednesday in Lagos.

He said that the new naira notes were in the apex bank’s vaults awaiting pick up by the commercial banks.

“We have been calling upon the banks to approach the Central Bank of Nigeria across the country to come and pick up the new notes; we have even waived some of the conditionality for accessing currency notes in order to accommodate the banks.

“The banks were being given slots before, but now the Central Bank of Nigeria is bending over backward to accommodate the demands of the banks in order to service them, so that they can service you and so that everybody will have access to the new naira notes,’’ Emefiele said.

Emefiele who was represented by Mr Kofo Salam-Alada, Director, Legal Services Department, CBN, said that the apex bank was seriously working to ensure that the new notes permeated everywhere.

He said that the apex bank was currently going round commercial banks to monitor banks and their Automated Teller Machines (ATMs) to ensure that they stopped paying customers the new naira notes over the counter but via the ATMs.

Emefiele said: “part of what we are doing is that we have monitors going around the banks now, I have been to some ATMs this morning and I’ve lodged a report and I’ve spoken to the management of the various banks.”

He also said that penalties await any bank which failed to come and pick up the new notes and failure to lodge money into their ATM machines.

He assured the marketers that the experiences they were having would soon be sorted out.

Emefiele urged them to call these numbers- 08176657641, 08176657642, 08176656721, 07080650791, and send messages to newnaira@cbn.gov.ng,  should they have any problem accessing the new notes.

Emefiele reiterated that the Jan. 31 deadline for the submission of the old naira notes was sacrosanct, urging people to go and deposit their old notes and not to be caught unawares.

He urged people to also make use of the enaira and other electronic channels to transact their banking business, adding that the apex bank was already taking steps to increase the number of merchants to good position where enaira would become acceptable.

The President of the Coalition of Associations in Computer Village, Mr Timmy David, urged the CBN to enforce their mandate by ensuring that the new notes were accessible before the deadline.

“There should be no banks that should not be given the new naira notes from the ATMs, all ATMs should load the new naira notes.

“As we are giving the old notes, we should be able to take back the new notes; this will enable people to transact their day to day business. If the machines are not dispensing the new notes, then it will not circulate,’’ he said.

Emefiele and his team visited the Palace of the Olu of Ikeja Land, and was received by the Olukosi of Ikeja Land, Chief Lateef Oluseyi.

Emefiele briefed him on the apex bank’s new policies and its decision to change the old 1,000, 500 and 200 denominations.

He also washed the new N1000 note with water to clear the doubts of some sections of society about authenticity of the new notes.

Naira

CBN guarantees availability of new notes

The Central Bank of Nigeria (CBN) has assured marketers and traders that it has made the redesigned naira notes (1000, 500, 200) available for them via Automated Teller Machines (ATMs).

The Branch Controller, CBN, Lagos State, Mr Koyor Baribokola, gave the assurance when the apex bank took its sensitisation tour on the new naira notes to Balogun Market, Lagos, on Tuesday.

He said the apex bank initially had a challenge as people were not depositing the old notes, but the situation had changed.

“We are having much deposits now; this gives us the confidence to push more new notes into circulation and into the economy.

“We are making them available to you and you will have them if you haven’t had them before. Please have the assurance that you are going to have them.

“We pushed out a lot last week and today we are continuing with it, part of the meeting was what delayed my coming out here.

“We set a date for the deadline for the complete change over that is Jan. 31, and for now, that stands. We have not extended or changed the time.

“So, between now and the Jan. 31, all the old 1,000, 500 and 200 notes you have in your possession, bring it to the bank and then take new ones,” Baribokola said.

He encouraged stakeholders to be the apex bank’s mouthpiece by spreading the message, and to protect and keep the new notes safe.

“Please have the assurance that the new naira notes were redesigned in the interest of all Nigerians including you so that you have them and you enjoy spending them and keep them safe, and as much as possible, try and also do electronic transactions.

“We encourage people to use our e-channels to do transfers, to spend, to buy and to do all that you need to do to share with your friends and your families,” he stressed.

The Head of Union Homes Success Market, Oloyeola Bisi Balogun, commended the apex bank for choosing to begin its sensitisation with the traders.

She, however, urged the bank to carry out more awareness campaigns on the new notes, particularly at the grassroots.

According to her, there are many people who are yet to see the new notes. “Let them relate more with the grassroots because the percentage of the people at the grassroots is more than those people in urban areas.

“The CBN has tried to improve the economy through the redesigned notes but we all know that in Nigeria when something is introduced newly, there’s bound to be complaints.

“We also had the same complaints when the old notes that we are used to now, were first introduced,” she said.

Mr Amos Adamu, a dealer in suitcases, who saw the new notes for the first time, said “I have never seen the new notes but if the redesigned notes can make Nigeria a better place for the masses, I support it.

“Because changing these three denominations will affect the poor because many do not have bank accounts to go and deposit the old notes.”

Also, Mrs Rebecca Ukachi, a trader, said though she disliked the new notes because they looked like fake notes, she would collect them whenever customers bring them to buy goods from her.

“Let us be sincere, the new notes look fake but I do not have an option, I will collect it because it is legally acceptable, but I still prefer the old notes because of the quality,” she said.

The redesigned notes – 1,000, 500 and 200 – came into use on Dec. 15, 2022.

Naira

New banknotes sill scarce as CBN’s withdrawal limits begins

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The cash withdrawal limits set by the Central Bank of Nigeria (CBN) become effective today, January 9, 2023 amid concerns over the slow spread and quality of three newly redesigned naira notes.

The CBN had on December 6, 2022, ordered Deposit Money Banks (DMOs) and other financial institutions to ensure that weekly over-the-counter (OTC) cash withdrawals by individuals and corporate entities do not exceed N100,000 and N500,000, respectively.

It had also pegged maximum daily withdrawals via Automated Teller Machines (ATMs) and Point Of Sale (PoS) terminals at N20,000 and said only denominations of N200 and below would be loaded into the ATMs.

The CBN had said the new policy was sequel to the launch of the redesigned N200, N500 and N1,000 notes by President Muhammadu Buhari on November 23, 2022.

The directive created controversy and outrage from millions of Nigerians and members of the National Assembly who disapprove of the policy. Many PoS operators had said the policy would strangulate their activities and rob them of employment while politicians said it was targeted at opposition parties ahead of the 2023 general elections.

But the apex bank on December 21, 2022 adjusted the weekly cash withdrawal limits to N500,000 for individuals and N5m for corporate firms.

There have been concerns from many Nigerians over the slow spread of the three new naira notes as the January 31 2023 deadline approaches but the apex bank has insisted that the date stands.

The CBN also recently directed commercial banks to halt over-the-counter payment of the new notes and load their ATMs with the redesigned naira notes to boost circulation.

On concerns over the quality of the new notes, the Nigerian Security Printing and Minting (NSPM) Plc, recently said the newly redesigned naira banknotes passed through the same printing processes as the others in circulation.

“In addition, the second stage of currency printing (lIntaglio) requires a heavy deposit of special inks with fairly large particles to give a tactile feeling of the portraits as well as other raised prints by way of design.

“One of the properties of intaglio inks is non-solubility in water and ease of transfer (light stain) on plain white materials owing to the size of the particles. This is generally a security feature of all banknotes that easily differentiates them from forged or counterfeited notes,” he said.

Naira

Redesigned banknotes top notch – NSPM

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The Nigerian Security Printing and Minting (NSPM) on Friday assured Nigerians that the newly redesigned Naira notes are of the required standard and quality.

The Managing Director of NSPM, Ahmed Halilu, gave the reassurance in a statement on Friday.

Halilu was reacting to concerns raised by some Nigerians, particularly on social media, about the quality of the new currency.

According to him, the company is concerned about widespread misconception about the quality of the new notes.

He said that the NSPM had the capacity of minting the currency notes within the required standard.

“The attention of the NSPM has been drawn to various clips, skits, concerns and comments on various platforms regarding the quality of the redesigned banknotes.

“As the nation’s foremost security printing and minting company, saddled with responsibility of producing the Naira, we find it expedient to address the misconception about the quality of new Naira notes.

“The NSPM Plc has been meeting the currency needs of Nigeria with the support of the Central Bank of Nigeria (CBN) since 2014.

“Indeed, Nigeria has achieved zero importation of currency, developed local capacity and to an extent, conserved foreign exchange within this period, ” he said.

He added that the new Naira notes were of the same “substrate” and passed the same printing processes and finishing procedures.

“It is, therefore, basically the same as the other notes in circulation. It also leaves traces of “intaglio” links when rubbed on plain white surfaces.

“It is, however, important to note that new banknotes are generally light when issued, then become heavier in circulation on getting in contact with dirt and moisture,” he said.

The Managing Director assured that international best practices were deployed in production of the Naira notes, while urging Nigerians not to subject the notes to unnecessary experimentation.

“The Naira is our legal tender and national symbol. We, therefore, urge Nigerians and other users of the Naira banknotes not to subject them to experiments in order to prove a point.

“Finally, we assure all Nigerians that best international practices have been deployed in the production of the Naira, and we shall continue to ensure that it meets international standards, ” he said.

Naira

Economists urge CBN to prevent hoarding, counterfeiting of new banknotes

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Economists have urged the Central Bank of Nigeria (CBN) to take firm control of the quantity of the redesigned naira notes it would release into circulation to avoid hoarding and counterfeiting.                     

The experts gave the advice ahead of the roll-out of the redesigned notes (N200, N500, 1000) by Dec. 15.

The apex bank had identified counterfeiting and hoarding as the reasons for redesigning and issuing new naira notes.

Hassan Oaikhenan,a professor of economics from the Department of Economics and Statistics, University of Benin, Edo, urged the apex bank to take firm control of the money in circulation.

“For the policy to achieve the desired objectives, it is advisable that the Central Bank implements the policy with all the shrewdness and meticulousness it can muster.

“The apex bank must ensure that it maintains a very firm control of the quantity of the redesigned currency that it puts in circulation.

“There is need to limit, as severely as possible, the supply of the physical currency, especially the higher denominations.

“The lower denominations may be made more freely available while the higher denominations, especially the N200, N500 and N1, 000 notes should be made to be as scarce as possible,” he said.

Oaikhenan also advised the apex bank to resist the temptation to be permissive in releasing these higher denominations into circulation.

He said, “otherwise, the entire policy option and action, which has the potential to boost the success of much desired cashless policy will become self-defeating.”

Similarly, Prof. Ndubisi Nwokoma, Director, Centre for Economic Policy Analysis and Research (CEPAR) University of Lagos, Akoka, urged the apex bank to ensure the release of the redesigned notes is controlled.

“The redesign of the naira is necessary in some respects, in terms of bringing back hoarded cash into the banking system.

“But, it has some shortcomings which the CBN should take cognisance of. It has worsened the exchange rate with the increased demand pressure in the market.

“The CBN should ensure that the release of the redesigned notes should be controlled to ease the pressure on the foreign exchange market.

“Secondly, CBN should watch out for possible counterfeiting given the simplicity in the new notes.

“The limited release in conjunction with the proposed cash withdrawal limits come January 2023 will help to minimise the incidence of vote buying in the forthcoming general elections,” Nwokoma said.

Prof. Sheriffdeen Tella, a Senior Economist at the Olabisi Onabanjo University, Ago-Iwoye, Ogun, urged CBN to ensure proper monitoring of the redesigned notes to be released.

“The CBN needs to make use of its nationwide branches to get the new currencies to all states at the same time with clear indication against hoarding or preference for politicians in the distribution to the public.

“This invariably calls for monitoring by the CBN and the need to listen to and verify complaints from banks and non-bank public,” he said.

A former President of the Chartered Institute of Bankers of Nigeria, Mr Okechukwu Unegbu, said, however, that the naira redesign would ensure currency stability and deepen financial inclusion.

“Particularly now more people have to embrace the various payment platforms for their financial transaction with the CBN withdrawal law.

“This will enhance our quest for a cashless policy and ensure our economy moves in line with global trends,” he said.

He noted that the naira seemed to have become quite stable with the pronouncement of the redesigning of the naira by the apex bank.

“We don’t often get those needless depreciation of the value of the naira, as speculators are finding it challenging.

“Over time, we expect the naira to appreciate against other national currencies with the CBN firmly in charge of its supervision,” he said.

New Naira notes

Buhari unveils redesigned naira notes

President Muhammadu Buhari has unveiled the redesigned naira notes of N200, N500 and N1000 at the Council Chamber of the Presidential Villa Abuja on Wednesday.

The unveiling of the naira notes preceded the virtual meeting of the Federal Executive Council (FEC) with a number of cabinet members in attendance.

The unveiling of the new redesigned notes hitherto slated for Dec. 15 was brought forward to Wednesday by the Central Bank of Nigeria (CBN).

The Governor of the CBN, Godwin Emefiele, who announced the shifting of the date on Tuesday at a media briefing to mark the end of the 288th Monetary Policy Committee meeting and the last in 2022, urged those in possession of the old notes to hurriedly deposit them at the nearest bank branch.

This, he said, would enable them to beat the Jan. 31, 2023 deadline to dispose of the old notes.

President Buhari at the inauguration of the new Naira banknotes, expressed delight that the currencies were locally produced by the Nigerian Security Printing and Minting (NSPM).

Buhari explained in detail the basis for his approval to the Central Bank of Nigeria (CBN) to redesign the  ₦‎200, ₦‎500 and ₦‎1000 banknotes.

According to the president, the new Naira banknotes have been fortified with security features that make them difficult to counterfeit.

He added that the new banknotes would help CBN to design and implement better monetary policy objectives, as well as enrich the collective memory of Nigeria’s heritage.

Buhari commended the CBN Governor, Godwin Emefiele and his Deputies for the initiative.

He equally thanked the Managing Director, Executive Directors and staffers of NSPM PLC “for working tirelessly with the apex bank to make the currency redesign a reality, and for printing the new Naira notes within a comparatively short time.”

According to him, international best practice requires central banks and national authorities to issue new or redesigned currency notes every five to eight years.

Buhari said that it was now almost 20 years since the last major redesign of the country’s local currency was done.

The president said that implied that the Naira was long overdue to wear a new look.

‘Buhari said: ‘A cycle of banknote redesign is generally aimed at achieving specific objectives, including but not limited to: improving security of banknotes.

”It is also aimed at mitigating counterfeiting, preserving the collective national heritage, controlling currency in circulation, and reducing the overall cost of currency management.

‘‘As is known, our local laws, specifically the Central Bank of Nigeria Act of 2007, grants the CBN the power to issue and redesign the Naira.

‘‘In line with this power, the bank’s Governor approached me earlier in this year to seek my permission to embark on a currency redesign project.

”I considered all the facts and reasons presented before me by the Central Bank.”

Buhari, therefore, expressed the hope that the new notes would address the urgent need to take control of currency in circulation.

He said that it would also address the menace of hoarding Naira banknotes outside the banking system  and curb the shortage of clean and fit banknotes in circulation.

Buhari added that the redesigned notes would also address the increase in counterfeiting of high-denomination Naira banknotes.

”It is on this basis that I gave my approval for the redesign of the ₦‎200, ₦‎500 and ₦‎1000 banknotes.

‘‘While this may not be apparent to many Nigerians, only four out of the 54 African countries print their currencies in their countries, and Nigeria is one.

”Hence, a majority of African countries print their currencies abroad and import them the way we import other goods.

‘‘That is why it is with immense pride that I announce to you that these redesigned currencies are locally produced right here in Nigeria by NSPM Plc,’’ he said.

In his remarks, Emefiele thanked the president for his unwavering support for the redesign and distribution of the new notes.

According to him, the new notes will control inflation, make policies more effective, ensure financial inclusion and fight corruption.

The CBN governor also said that by international best practice, the redesign of notes should be every five to eight years.

He said,” and the currency in circulation had been in use for 19 years, with spiraling challenges on the economy, especially on security and counterfeiting.”

Emefiele also appreciated the president for his insistence that the initial notes must be designed and produced within the country, further placing confidence in NSPM Plc.

“Mr President, only a President of your esteemed and incorruptible stature could have done what we are witnessing today,’’ he added.

Emefiele listed more benefits of the redesigned naira notes to include enhanced security, greater durability, attractiveness and promotion of rich cultural heritage.

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CBN warns banks against ‘composed’ banknotes in their deposits

The Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) to stop bringing “composed banknotes ” as part of their deposits with the apex bank.

The warning is contained in a circular issued in Abuja by Ahmed Umar, the Director, Currency Operations Department of CBN, which he said took effect from April 1.

The composed banknotes are mutilated currency notes comprising several parts of different banknotes of the same denomination.

The parts of such currency notes are usually put together with the intention of receiving value

Umar said that the existence of such banknotes in the economy falsified the true value of currency in circulation, and could also be avenue for fraudulent activities.

He said that henceforth, composed banknotes discovered in the deposit of DMBs shall attract a penalty of 400 per cent of the value.

“The management of the CBN observed with concern the increase number of composed banknotes deposited by DMBs and request for replacement of such banknotes by members of the public.

“The existence of composed banknotes in the economy falsify the true value of currency in circulation, and can also be avenue for fraudulent activities.

“Consequently, any composed banknote discovered in the deposit of DMBs shall attract penalty of 400 per cent of the value,” he said.