Lagos, Nigeria – The Central Bank of Nigeria described the currency redesign plan as a move to counter cases of counterfeiting, terrorism financing and hoarding of cash.
More than half of Nigeria’s money in circulation is held out of the banking sytem.
Muhammadu Buhari, launched the 200, 500 and 1000 Naira notes.
The notes are produced in Nigeria by the Nigeria Security Printing and Minting and have new security features that make them counterfeit-proof.
“Banknote redesign is generally aimed at achieving specific objectives including, but not limited to; improving security of banknotes, mitigating counterfeiting, preserving collective national heritage, controlling currency in circulation and reducing overall cost of currency management,” President Buhari said during the launch at the presidential villa.
The release comes earlier than the proposed date, 15th December 2022.
This move is also expected to reduce incidents of terrorism and kidnapping as access to large volumes of money outside the banking sector that are used for ransom payment will begin to dry up.
“Indeed, recent developments in photographic technology and advancements in printing devices have made counterfeiting relatively easier,” said the Governor of the Central Bank of Nigeria.
Bank charges for cash deposits have been suspended with immediate effect to allow the public to transit from the old notes to new ones.
The old notes will continue to circulate as legal tender until 31st January, 2023.
The CBN Governor insisted that the Central Bank will not extend the deadline as the 100 days provided for people to deposit their existing notes is enough.