By John Ikani
The Central Bank of Nigeria (CBN) has refuted claims that it intends to phase out the newly redesigned N1,000, N500 and N200 naira notes.
In a statement released on Sunday, the bank’s Acting Director of Corporate Communications, Dr. Isa AbdulMumim, dismissed the reports as unfounded and a tactic to spread panic among the public.
He emphasized that the old and new notes would continue to circulate side by side, and that the bank was committed to supplying the necessary currency for the economy to run smoothly.
AbdulMumim said: “We wish to reiterate that the new and old currency notes have been circulating side by side just as the Bank has been taking delivery of a good quantity of the redesigned bank notes from the Nigerian Security Printing and Minting Company Limited.”
He further stated: “We, therefore, urge members of the public to disregard any report suggesting a phase-out of the redesigned currency.
“For the avoidance of doubt, the redesigned and old notes will continue to be accepted as legal tender. They will circulate side-by-side for transactions ahead of the December 31, 2023 deadline, when the old N1000, N500 and N200 banknotes will eventually be phased out.”
The CBN’s announcement comes in response to mounting concerns about the disappearance of the new notes.
The currency in circulation in Nigeria rose by N701.4tn in March 2023, after the CBN reversed its policy on the naira redesign.
The bank had previously announced plans to redesign the N200, N500, and N1,000 notes in October 2022, citing challenges associated with currency management, including hoarding by members of the public
However, the policy had a disproportionate impact on vulnerable groups, including the poor, the unbanked, and rural dwellers.
According to figures obtained from the CBN, the currency in circulation had dropped by 235.03% to N982.09bn at the end of February, down from N3.29tn at the end of October 2022, as N2.3tn was mopped up from circulation during that period.
