Redesign of Naira notes by CBN
The Central Bank of Nigeria (CBN) announced its plans to introduce new designs of the N200, N500 and N1,000 notes by December 15 amidst ‘economic woes’. This is one of the few policies considered good politically and economically for Nigeria.
The CBN has come out in defence of its plans. The bank of banks stated that the redesigning will combat hoarding of Naira notes, put an end to scarcity of clean and fit bank notes and will curb the increasing ease with which bank notes could be counterfeited.
According to the CBN Governor, Godwin Emefiele, “Statistics show 85 per cent of currency in circulation are outside the vaults of our commercial banks. Data indicates that N2.73 trillion out of the N3.23 trillion currency in circulation was outside the vaults of the commercial banks across the country.”
Emefiele argued that the CBN has recorded significantly higher rates of counterfeiting especially with N500 and N1,000 notes. The redesigning therefore will take measures to make counterfeiting extremely difficult if not impossible.
He also mentioned that the move will tackle ransom payments to terrorists and kidnappers by way of making it difficult.
Apart from all these, the CBN Boss emphasized that any deposit above N150,000 attracts deposit fee. This in turn fetches the government good income. He went further to hint that the Naira has not been redesigned in the last 20 years, which makes it long over due. He equally believes that the redesigning of the currency will help deepen the drive to entrench a cashless economy, and that a christ minting of e-Naira will complement it.
The Conference of Nigeria Political Parties (CNPP) on Thursday lent its voice by hailing the CBN over the decision to redesign our high denominations, saying that it’s only a politician who intends to buy vote and financially induce electoral officials, beneficiaries of proceeds of crimes, including drug barons and kidnappers that would kick against the move.
The Concerned Northern Forum feels redesigning of the Naira is borne out selfish interest, arguing that a group of people wants to enrich themselves through contracts and some sharp and fraudulent practices in carrying out the plan.
However, the Concerned Northern Forum (CNF) said, “ Our economy as a nation is down and our Naira has depreciated to the minimal value, all the leadership of Central Bank could offer us as solution…. is to redesign our currency.”
It is very true that the redesigning will gulp a lot of money. Regardless of all the arguments put across, we believe redesigning the Naira will have multiple implications for us and our money. Yes, the benefits may not be quickly noticed or many, it’s still good to give it a shot for security and stability of our country and our currency respectively.
Firstly, redesigning Naira will give the Apex bank an opportunity to integrate advanced technology into the design of the new Naira notes.
Again, politicians with significant cash hoard in readiness for the election will be forced to deposit their money before January 31, 2023. Illicit and questionable money stashed in houses and safe locations will attract the attention of the EFCC at the point of deposit.
The conditions of our notes are also appalling. Most of them are no longer presentable. Redesigning and changing them will afford us the opportunity of handling and spending new notes.
In all, we feel the Central Bank should be given the opportunity to forge ahead with its plans to redesign the high denominations. Considering the pros and the cons, we believe that the benefits outweighs the disadvantages if properly handled, as much as we advise the Apex bank to take precaution to avoid policy summersault, as well as guiding against circumventing.
