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On Thursday, Deposit Money Banks will provide the newly redesigned naira notes to their customers for use in over-the-counter transactions.
About three weeks prior, at the Federal Executive Council meeting held in Aso Rock Villa, President Major General Muhammadu Buhari (retd) unveiled the new bills.
The revised N200, N500, and N1,000 notes were unveiled by the President.
Godwin Emefiele, the governor of the Central Bank of Nigeria, had previously stated in October that the apex bank will issue newly designed naira notes by December 15, 2022.
Additionally, he stated that as of January 31, 2023, the old notes would no longer be accepted as legal cash.
Emefiele emphasized that the redesign of the naira notes would aid in reducing ransom payments to terrorists and kidnappers as well as counterfeit notes.
The head of the CBN said it was concerning that Nigerians were hoarding 85% of the entire amount of cash in circulation.
He added that out of the about N3.3 trillion in circulation, nearly N2.75 trillion were outside the banking sector and that the redesign of the local currency will help to mop up the currency outside the banking sector.
Top commercial bank executives told our correspondent on Wednesday that they had received the new notes from the CBN a few days prior and that their customers will start receiving the redesigned money on Thursday (today).
“We only received the money (new notes) a couple of days ago. The money has been sent from our central office to numerous regional offices across the nation. My branch will go to a nearby office to pick up our allocation. According to a top official of a commercial bank who spoke to one of our correspondents on condition of anonymity on Wednesday because he was not authorized to comment on the subject, “We will start delivering the new notes to our customers by Thursday.”
They stated that starting on Thursday, the new notes would be distributed to consumers in the banking halls.
The new notes have arrived, and consumers will be able to purchase them starting tomorrow (Thursday), according to a Polaris Bank representative who asked to remain anonymous.
We now received the monies from the CBN, according to a manager at First Bank Plc who was not authorized to talk on the subject. It arrived a few days ago, but users will have access to it starting on Thursday.
The quantity of the fresh notes made available to the various banks by the CBN, according to several bank executives, was little.
They claim that due to the volume of the available notes, the majority of OTC payments will continue to be made using the old notes.
“The amount provided to us is insufficient in light of our needs. For instance, my branch has access to less than N1m. When compared to what we need, this is little. However, I think it will rise with time, an FCMB representative in Lagos told one of our correspondents while asking to remain anonymous.
Several financial sources have reported that they had begun reprogramming their ATMs to recognize the new naira notes.
“Most of the banks have started redesigning their ATMs so that they can detect the new notes of N1000, N500, and N200,” claimed a top bank executive.
The overall amount to be released into circulation may not be as much as the amount already in circulation, according to CBN data.
Under the condition of anonymity, a senior CBN official stated that the organization intended to encourage electronic payments rather than cash transactions.
He claims that the CBN won’t be printing many of the new notes.
The CBN has began distributing the new naira notes to the banks, but it doesn’t plan to distribute a lot of them because it wants to promote electronic payments.
“Don’t anticipate that the new notes will be used frequently in the economy. The public ought to use a variety of electronic channels.
Vincent Paul
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