Step to take in the Naira Note Change Scandal as CBN Prepares to
Redesign Naira Notes

The new N100, N200, N500, and N1000 notes are projected to begin circulation
by December, and by January 31, 2023, the old notes should no longer be in
used. 

It
is
no
more
a
breaking
news
that
the
central
bank
of
Nigeria
has
decided
to
redesign
the
Naira
Notes,
which
will
be
rendering
the
current
naira
note
useless
as
from
the
stipulated
time
and
in
this
detailed
guide
about
the
naira
note
Change,
I
will
be
providing
you
with
all
you
need
to
know
about
the
new
development.

The decision to change the naira note is made known to the general
public on Wednesday 26/10/2020 at a news briefing in Abuja.

The
governor of the Central Bank of Nigeria made it known that the redesigned Naira
Notes will be released by December 15, 2022 and that the existing ones will
seize being regarded as legal tender by January 31, 2023.

However,
the decision has fueled lots of opinions from different individuals across the
country, while some individuals accepted it as a great development, a lots of
individuals rejected the idea and seems not to understand the whole thing.

The
reason stated above is what prompts Utilitarian blog  to release this
detailed guide about the naira note Change, to be an analysis of the new
development and to let you understand all you need to know about the Naira Notes
redesign and above all, tell you the next step.

Why Is CBN Redesigning Naira Notes

According to the CBN governor, the decision to change the looks of the
naira notes is in a bid to control the amount of money in circulation and
thereby tackling inflation.

The aim of the Central Bank of Nigeria is
to redesign N100, N200, N500, and N1000 and start disbursing the new notes by
December, 2022, then by January 31,2023, the old notes are expected to be out of
circulation and seized to be legal tender.

Godwin Emefiele, made it
known that the currency management has faced several daunting challenges that
have continued to escalate in scale and sophistication with attendant and
unintended consequences for the integrity of both the
CBN and the country.

Moving
further, we learned that a lot of challenges have to be tackled by the central
bank of Nigeria and on of the strategic way to challenge these challenges is by
refraining the old note and make it more innovative.

“These
challenges primarily include: Significant hoarding of banknotes by members of
the public, with statistics showing that over 85 percent of currency in
circulation are outside the vaults of commercial banks,” Godwin Emefiele
said.

“To be more specific, as at the end of September 2022,
available data at the CBN indicate that N2.73 Trillion out of the N3.23 trillion
currency in circulation, was outside the vaults of Commercial Banks across the
country; and supposedly held by the public.

“Evidently, currency in
circulation has more than doubled since 2015; rising from N1.46 trillion in
December 2015 to N3.23 trillion in September 2022. This is a worrisome trend
that cannot be allowed to continue.”

What Effect with the naira redesign
have on Nigeria economy

Speaking on the development, Temitope
Omosuyi, investment strategist, Afrinvest Securities Ltd, said the move would
hugely discourage the culture of illicit money stacking.

“For people
that have illicit money stacks in the house, they have to bring them out,” he
said.

Other identified possible effects are: Tighten grip on money
supply, which will allow the central bank of Nigeria to take the appropriate
control of the amount of money in circulation.

• Aid positive impact on Naira
  value.
• And as well to regulate the cost of printing naira notes.

Is CBN Redesigning Naira Notes

That’s a capital yes! The naira notes will be redesigned and that’s the
main reason why I am creating this guide in order to let you know the next step
you must take b for the old notes seized to b legal tender.

Will CBN design N5,000 and N2000 notes

That’s a capital no, and you should regard such news as a fake News. The
Central Bank of Nigeria will only redesign the old notes and not creating new
notes.

Early this morning, a video started circulating on WhatsApp
and shows some bundles of new 2,000 and 5,000 naira notes with the name of the
Central Bank of Nigeria (CBN) clearly printed on them. Which I cautioned the
individuals that shared Such video.

You should understand that as a
the moment of creating this guide about the naira note Change, the CBN aim is to
remove the old notes from circulation and not to create new denominations.

Next step to take as naira note Changes

Now that you’re fully aware of the latest development as far as the naira
note Change is concerned, the next thing is to know the appropriate steps to
take so that the new changes won’t work against you.

Old Nigeria Naira note.

Having been
aware if the development, the next step is to make sure you keep the old notes
out if your possession before the deadline. Especially if you have excess in
your possession.

• 1. Return excess money to the Bank. As at this moment, the rate at which
  people will be performing deposit transaction at each branches of the
  deferent banks across the country will be on its rise and it’s normal.

If you have excess note in your possession and you won’t be able to spent
it all before the stipulated period of time, make sure you return it to the bank
as soon as possible.

The more you delay the process, the More
difficult it will become as there are possibilities that banks will be crowded
towards the deadline, but since you’re aware earlier, it will be at your
advantage before everyone else start returning the old notes to the bank.

Maybe
you’re thinking of charges you might incurred during the deposit activities?
Don’t worry, Emefiele already told the general public that the charges for cash
deposits are suspended with immediate effect to facilitate the phasing out of
the current naira notes.

The apex bank directed deposit money banks
(DMBs) to ensure cash returned/paid into their accounts attracted zero
charges.

• 2. Make sure to have spent 99.9% of the old notes before the stipulated
  period of time.

By taking the aforementioned steps above, you will be totally safe and you
won’t be hoarding the old notes when it would have been seized to be a legal
tender.

Conclusion

Having review the new decision of the central bank of Nigeria to change
the old notes, it can be concluded that the new naira not change have potential
of bringing some positive changes to it’s value if everything goes as planned.
On this note, everyone should comply with the new directive and hope for
positive changes in future.
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