Buhari unveils redesigned naira notes, says it will enhance monetary policy objectives

President Muhammadu Buhari has unveiled the redesigned naira denominations of N1000, N5000 and N200, which he said will help the Central Bank of Nigeria (CBN) to implement better monetary policy objectives and enrich the collective memory of Nigeria’s heritage.

He performed the ceremony shortly before the commencement of the weekly Federal Executive Council (FEC) meeting inside the Council Chamber of the Presidential Villa, Abuja on Wednesday, expressing delight that the redesigned currencies are locally produced by the Nigerian Security Printing and Minting (NSPM) PLC.

Buhari explained the basis for his approval to the apex bank to redesign the new banknotes, saying that ‘‘the new Naira banknotes have been fortified with security features that make them difficult to counterfeit.’’

President Buhari commended the CBN Governor, Godwin Emefiele and his deputies for the initiative, while also thanking the Managing Director, Executive Directors and Staff of the Nigerian Security Printing and Minting 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.”

Acknowledging that international best practice requires central banks and national authorities to issue new or redesigned currency notes every 5 to 8 years, the President noted that it is now almost 20 years since the last major redesign of the country’s local currency was done.

He added, ‘‘This implies that the Naira is long overdue to wear a new look.

‘‘A cycle of banknote redesign is generally aimed at achieving specific objectives, including but not limited to: improving the security of banknotes, 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 Central Bank of Nigeria the power to issue and redesign the naira.

‘‘In line with this power, the Central Bank Governor approached me earlier 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.

‘‘There was an urgent need to take control of currency in circulation and to address the hoarding of Naira banknotes outside the banking system, the shortage of clean and fit banknotes in circulation, and 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 4 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 our Security Printing and Minting PLC.”

In his remarks, the CBN Governor thanked the President for his unwavering support for the redesign and distribution of the new notes, which he said will control inflation, make policies more effective, ensure financial inclusion and fight corruption.

Emefiele also noted that by international best practice, the redesign of notes should be every five to eight years, and the currency in circulation had been in usage for 19 years, with spiralling challenges on the economy, especially on security and counterfeiting.

He appreciated President Buhari’s insistence that the initial notes must be designed and produced within the country, further placing confidence in Nigerian Security Printing and Minting.

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

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

Fielding questions from correspondents after the event, Emefiele said the apex bank is determined to make Nigeria a cashless economy.

He said the amount of money that can be withdrawn from the counter will be drastically restricted, noting that anyone who wants to withdraw substantial cash would be tracked by security agents to determine its use.

Emefiele explained, “In other countries you will find, say in the US, you want to withdraw $10,000 from the counter, you will be interrogated, you will fill numerous forms, they will even track the use of that $10,000 cash that you are withdrawing.

“Or you want to withdraw £10,000 from the counter. They will refuse and if you insist, then you will fill out forms. The problem we have had in the past is that we say this is a cash economy.

“There is no economy that is inbuilt thinking that it has to be a cash economy. The world has moved away from predominantly cash to a cashless economy. And I think Nigeria and the Central Bank of Nigeria are prepared at this time to move towards a cashless economy. And that is the reason why with the reissue of these notes, we will insist that cashless would be nationwide.

“We will restrict the volume of cash that people can withdraw over the counter.
If you need to withdraw large cash, you will fill out uncountable forms. We will take your data, whether it is your BVN, or your NIN so that enforcement agencies like EFCC or ICPC can follow you and be sure that you are taking that money for a good purpose.

“We have to work as a country, Nigeria is the biggest country both in population and economy in Africa and we have to ensure that we do things the right way that also positions us as a leader in Africa and one of the leading countries in the world. We must do things right and i think it would start today.”

The apex bank chief reiterated that nobody is being targeted with the currency redesign.

He stated: “The practice worldwide is that currencies should be redesigned or replaced or reissued every five to eight years. But for Nigeria, we have not had the opportunity of redesigning and reissuing currency in the last almost 19 years.

“The Central Bank of Nigeria, by law has the mandate to reissue and redesign currency for the country and for Nigerian people, every five to eight years. And I want to hope that after the event of today, the Central Bank of Nigeria can take it as part of its programmes to see to it that within five to eight years, the currencies are designed or reissued.

“It is because mainly the Central Bank should be able to have full control of the size of currency in circulation. That is the sole mandate of the Central Bank of Nigeria because it has implications for monetary policy management in the country.

“There is no need for anybody to think that this programme is targeted at anyone. As you heard the President speak in the chambers, he said that this discussion to redesign and reissue this currency started earlier in the year.

“We took painstaking efforts in looking at the pros and cons and the reasons when and why it should be done. And the President in his wisdom, decided that yes, it must be done.

“In the past, I have to confess that attempts by the Central Bank of Nigeria to redesign our ratio currencies have been resisted. And that is the reason I also read in my speech, that only a president of the esteem and statute of President Muhammadu Buhari could have done this.

“And I want to seize the opportunity to appeal to members of the public that there is no need for any insinuations, giving the impression that this is targeted at any individual. There is no attempt at that. We’re doing our work and we would continue to do our work.”

He insisted that the January 31st deadline for the exchange of old notes will not be extended, noting that there are over 1 million points in the country where people can deposit their old notes.

 

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