…insists on February 10 date for legal status
OSAS EMMANUEL
Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has assured Nigerians that non will lose money under the Naira redesign and swap, saying that the exercise is in the overall interest of Nigerians and national economy.
Emefiele gave the assurance in a meeting with the Ad-Hoc Committee on review of the Bank’s cashless policy and extension of its timeframe on Tuesday, January 31, 2023, at the National Assembly, Abuja.
He noted that subject to provision of Section 20 (3) of the CBN Act, Nigerians would be given the opportunity to redeem face value of the Naira in their possession after the currency would have lost its legal tender status on February 10, 2023, only, at the CBN.
He said: “Nigerians will not lose their money, I therefore, seek your cooperation to ensure a successful programme.”
The Apex Bank boss disclosed that to ensure effective distribution of new banknotes, about N1.9 trillion had so far been collected since the commencement of the exercise.
“The currency redesign policy had so far recorded about 75 per cent success rate, given the fact that many of those in the rural and under-served locations across the 36 states of the country have had the opportunity of swapping their old banknotes for the new series.”
He said that the CBN Act empowers the monetary authorities to redesign the country bank notes every five to eight years adding that the latest redesign of the Nigerian Naira is coming after nineteen years of the last exercise.
He told the House Committee that currency management is a key function of the Central Bank, world over and the apex bank use the redesign of the country’s legal tender to control money circulation.
He also said that the latest Nigerian currency redesign is because there is too much money in circulation as there is N1.4 trillion in circulation in 2015, compared to N3.3 trillion in circulation in 2022 by CBN statistics in the country.
“There is more than N2.3 trillion Naira in circulation currently in Nigeria that is outside the vault of the CBN, money in the hands of private individuals does not allow the CBN to do monetary policy control effectively,” he said.
Committee Chairman, Rep Doguwa further asserted that the time frame for the monetary policy was short with rural dwellers feeling more of its impact, insisting that the timing of the new currency redesign is not proper as many bank customers with business, being affected by the policy.
Accompanied by his four deputy governors, Emefiele disclosed that the Bank had deployed about 30,000 super agents to work with commercial Bank’s staff currently in the hinterland to ensure that the under-served and vulnerable members of the society are adequately catered for.
He also, disclosed that the CBN was working closely with relevant agencies of the Federal Government to ensure full compliance with the CBN guidelines, issued to the deposit money bank for the seamless distribution of the new banknotes.
Speaking earlier, Chairman of the Special Ad-Hoc Committee, Rep Ado Doguwa expressed support of the House of Representatives for the cashless policy, stressing that the House would assist the CBN in achieving its mandate.
