*Zainab Shamsuna Ahmed, Nigerian Minister for Finance, Budget and National Planning, sheds more light on consumers’聽 expectations from the imminent release of the new Naira 聽denominations in the economy

Isola Moses |聽 绿帽献妻

Following the Central Bank of Nigeria’s recent announcement of the redesigning and circulation of certain higher denominations of the Naira, the Federal Government has provided more information on the new banknotes.

Mr. Godwin Emefiele, Governor of CBN, had disclosed this development at a media briefing Wednesday, October 26, 2022, in Abuja, FCT.

The Bankers’ Bank noted that it is redesigning N200, N500 and N1,000 denominations, and the new Naira notes will be released into circulation December 15, 2022.

绿帽献妻 reports聽 Mrs. Zainab Shamsuna Ahmed, Nigerian Minister for Finance, Budget and National Planning, Thursday, October 27 offered more insights in a blog post titled, 鈥楢dditional Information On New Naira Bank Notes鈥�.

The Minister urged Nigerians to note the following important items of information:

“1. Banks must only accept cash from customers with full KYC (Know Your Customer) and bank accounts.

2. Cash must only be paid into customers accounts. Cash must not be paid into ledgers or suspense accounts.
3. CBN and EFCC (Economic and Financial Crimes Commission) will be tracking all deposits.
4. Old currency will become useless on the 31st of January, 2023.
5. It鈥檚 an opportunity to leverage our branch network to drive funding of accounts.
6. It will drive digital adoption and opening of new accounts.
7. CBN will no longer print large quantities of Cash. New cashless policy to be announced in January, and;
8. Banks that receive cash from non-account holders or customers will be penalised by CBN and EFCC.”

Minister’s volte-face at 2023 Budget defence in Senate?

On the flipside, Mrs. Ahmed Friday, October 28 again, spoke in response to a question Senator Opeyemi Bamidele (Ekiti State) asked her on the forthcoming new Naira notes during the 2023 budget defence session with the Senate Committee on Finance in the National Assembly (NASS), in Abuja.

The Minister for Finance, Budget and National Planning, reportedly dissociated her office from the planned redesign of the Naira notes.

Sen. Bamidele had told the Minister that barely two days after the CBN announcement of the plan, the effect on the value of the Naira to the US Dollar was being felt in the economy.

The Federal legislator said: 鈥淛ust two days after the announcement of the policy, the value of Naira to a US Dollar has risen from N740 to N788 due to a rush in exchange of naira notes for foreign currencies, particularly Dollars.鈥�

In her quick response, the Ahmed said she and her Ministry are not aware of the policy but only heard of it from the media.

She was quoted to have stated: 鈥淒istinguished Senators, we were not consulted at the Ministry of Finance by CBN on the planned Naira redesigning and cannot comment on it as regards merits or otherwise.

鈥淗owever, as a Nigerian privileged to be at the top of Nigeria鈥檚 fiscal management, the policy as rolled out at this time portends serious consequences on the value of the naira to other foreign currencies.”

The Minister added: 鈥淚 will, however, appeal to this Committee to invite the CBN Governor for required explanations as regards merits of the planned policy and rightness or otherwise of its implementation now.鈥�

Recall Mr. Emefiele, Governor of CBN, at the briefing Wednesday, said the new Naira notes would be released into circulation for public use December 15, 2022.

The CBN Chief also noted both the existing and new notes will circulate together until January 31, 2023, when the old notes will have ceased to be legal tender in Nigeria.

As regards the rationale for redesigning exercise, Emefiele noted that the bulk of the Nigerian currency notes were outside bank vaults and the Bankers’ Bank would not allow the聽 situation to continue.

He stated: 鈥淚ndeed, the integrity of a local legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy are some of the hallmarks of a great Central Bank.

鈥淚n recent times, however, currency management has faced several daunting challenges that have continued to grow in scale and sophistication with attendant and unintended consequences for the integrity of both the CBN and the country.”

According to him, such challenges include hoarding of banknotes by members of the public, with statistics indicating that over 80 percent of currency in circulation is outside the vaults of commercial banks.

鈥淥n the basis of these trends, problems, and facts, and in line with Sections 19, Subsections A and B of the CBN Act 2007, the Management of the CBN sought and obtained the approval of President Muhammadu Buhari to redesign, produce, and circulate new series of banknotes at N100, N200, N500, and N1,000 levels.

鈥淚n line with this approval, we have finalised arrangements for the new currency to begin circulation from December 15, 2022,” said he.

The Governor of CBN further stated: “The new and existing currencies shall remain legal tender and circulate together until January 31, 2023, when the existing currencies shall cease to be legal tender.

鈥淎ccordingly, all Deposit Money Banks (DMBs) currently holding the existing denominations of the currency may begin returning these notes back to the CBN effective immediately.”

Emefiele said: “The newly designed currency will be released to the banks in the order of first-come-first-served basis.”

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