The Central bank of Nigeria says it has redesigned all major naira notes and will by December 2022 start circulating them.
The effector denominations are 100 naira, 200 Naira, 500 naira and 1000 naira. Governor of the CBN Godwin Emefiele said the move is part of effort to control the currency in circulation.
But beyond that, he says it is also a way to curb counterfeit currency and ransom payment to kidnappers and terrorists.
Speaking on the new move by the CBN and the excess money in circulation outside the banking sector, policy analyst Muyiwa Ogunlaja said looking at the 27 act of the CBN, section 19, sub sections A and B, it empowered the CBN to always tackle the problem of currency by ensuring that best practices are prevailed.
Mr. Ogunlaja suggested that every nation’s currency should be modified, redesigned, or something done to render those currencies that have been stored useless or to bring them out within the next five to eight years.
According to him, Nigeria last conducted this exercise 20 years ago.
Mr. Ogunlaja stated that the exercise has been long overdue because more than 80% of Nigerian cash is being stored outside of bank vaults.
“Some of these monies are stored in the mortuaries, burial grounds, deep freezers, farms, and we have the ones that have been swallowed by snakes.
The policy analyst noted that most of the currencies in circulation now are very smelly and dirty. A lot will still come but thanks to this intervention.
“A lot of them who have hidden money now have to find a way of bringing the money into the system and EFCC is waiting because you need to explain how you got the money that you want to bring in.
“A lot of wealthy men are very stingy, selfish and very egoistic, they are not going to part away with any kobo, they will want to bring in everything and in the process they fall into the net
He went further by saying the real purpose why the CBN is carrying out this exercise is to give the naira its credibility.
“The naira is not better than toilet roll.
“The CBN has also been seen as very weak, inflation has also gone up.
“A lot of Nigerians no longer bargain when they go to the market, they buy at the price being sold because there is so much money in circulation.
Mr Ogunlaja went on to say there is no economy that will grow without first witnessing a downturn
On how mopping up the currency in circulation will help inflation, the policy analyst said when the money in circulation is not much, prices will be automatically affected.
Importers will also be forced to import items that are essential and of necessity, and prices are extremely affordable to people.
Workers will also be able to live within their means, bogus and outrageous allowances will be cut off.
“It will be a case of cut your cloth according to your size”.
He added that those saddled with these responsibilities should take the job seriously and bring the nation out of its current situation.