The Central Bank of Nigeria, (CBN), has urged marketers and stakeholders in Taraba state to comply with January 31st order as final day of using old N1000, N500 and N200 bank notes.
The call was made by the CBN Jalingo area controller, Idris Marina, during the stakeholders sensitization held at Jalingo central market in the state capital.
He explained that, currency management as a key function of the Central Bank of Nigeria recieved directive from president Muhammadu Buhari to redesign denominations of N1000, N500, and N200 which was unveiled on November 23,2022.
According to him, in recent times the currency management in Nigeria has faced several challenges by members of the public, including hoarding bank with statistics showing that N2.72 trillion out of the N3.26 trillion currency in circulation.
He added that, the redesignation of new notes will also adress the challenges of worsen shortages of clean and fit banknotes and increase risk to financial stability.
He maintained that, it would reduce risk of counterfeiting and increase evidences for security reports received at the Central Bank of Nigeria.
The area controller then advised Taraba people to deposit cash holdings in these denominations at their commercial banks adding that, as there is no limit to how much a customer can deposit between now and January 31st, 2023 as CBN suspended charges.
Speaking, the Director, Financial System Strategies, Ibrahim Hassan said
“Naira Redesign, No going back on the date of new naira notes.
“There will be no extension, so citizens are advice to ensure that they deposit all the N200, N500, and N1,000 banknotes in their possession before the dateline of January 31, 2023.
According to him, the decision the Central Bank of Nigeria to redesign three denomination of the Naira is not targeted at any group or persons.
“Citizens can make payments through eNaira, Point of Sale (POS), Mobile payment service banks, mobile apps, internet banking or other cashless channels.
He said that data have shown that a large volume of banknotes hoarding by the public, which has lead to a shortage of clean and fit banknotes, increase in the rate of counterfeiting in the country and the long span of re – designation of naira notes which according to best practice, should be undertaken every five to eight years.
“The current N200, N500, and N1,000 banknotes will circulate side by side with the redesigned banknotes till January 31, 2023, when the current notes shall be withdrawn from circulation and cease to be legal tender. The current notes remain legal tender till January 31 2023 and should not be rejected as a means of exchange for purchasing goods and services.
He urge people to visit commercial banks to deposit the old notes.
“People without bank accounts can visit banks of their choice to open accounts. You can also approach the nearest CBN authorized agent to make your deposit if you reside in a rural areas – he stated.
Recalls that CBN had on October 26, 2022, announced plans to redesign the naira, citing concerns of “illicit” funds in circulation, which it said bandits and kidnappers had been exploiting in perpetrating their crimes.
The redesign is for selected currency notes that include N200, N500 and N1,000.
The CBN had said it will be introducing the redesigned notes into the financial system on December 15, 2022, and has also given January 31, 2023 as the expiry date for legal tender of the notes.