Going by the policy framework released by the Central Bank of Nigeria (CBN), the redesigned N1000, N500 and N200 notes are to be rolled out in banks today.
Last week, CBN Governor, Godwin Emefiele confirmed that the redesigned banknotes were already in banks’ vaults in readiness for today’s disbursement.
Emefiele said the new notes have been dispatched to the banks, and it is expected that the banks will begin to distribute those currencies to the members of the public who are their customers.
President Muhammadu Buhari unveiled the new notes of of the redesigned notes last week at the Council Chambers of the Presidential Villa, Abuja, shortly before the kick-off of the Federal Executive Council (FEC) meeting.
Emefiele said the introduction of new notes was a deliberate step by government to check corruption and counterfeiting of the notes.
He said: “In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1000 banknotes. Although global best practice is for central banks to redesign, produce and circulate new local legal tender every five to eight years, the naira has not been redesigned in the last 20 years.
“On the basis of these trends, problems, and facts, and in line with Sections 19, Subsections a and b of the CBN Act 2007, the Management of the CBN sought and obtained the approval of President Muhammadu Buhari to redesign, this approval, we have finalised arrangements for the new currency to begin circulation from December 15, 2022.”
Emefiele said the new and existing currencies shall remain legal tender and circulate together until January 31, next year when the existing currencies shall seize to be legal tender.
The CBN directed all banks currently holding the existing denominations of the currency may begin returning these notes back to the CBN effective immediately.
Newly designed currency will be released to the banks in the order of first-come-first-serve basis,” the CBN boss said.
He said the apex bank has moped up over N1 trillion from the banks and CBN, adding that monitoring developments on the exercise.
Emefiele said over N500 billion has been received by the CBN while the banks have also received close to N500 billion.
He said: “At the central bank we have received more than half a trillion naira with the banks we also have goods also received close to half a trillion naira.
“So, what we have done at the central bank is to move more people from different departments into currency processing department so that they can process this cash as quickly as possible.”
He said that of the N3.23 trillion cash in circulation as at September, N2.73 trillion was outside the vault of the banks.