The Central Bank of Nigeria (CBN) announced on Wednesday that the N200, N500, and N1,000 notes will be redesigned.

This was stated by CBN Governor Godwin Emefiele during a special press briefing in Abuja. The new layout and issues will go into effect on December 15, 2022.

According to the head of the CBN, the measure was conducted in order to seize control of the cash in circulation.

According to Emefiele, the central bank has received authorisation from President Muhammadu Buhari to replace the current circulating currency with fresh notes.

“In line with the provisions of Sections 2(b), Section 18(a) and Section 19, Seb section(a) and (b) (2007), the management of the CBN has sought and obtained the approval of President Muhammadu Buhari to redesign, produce, release and circulate new series of banknotes at N200, N500 and N1,00 levels,” he said.

“In line with this approval, we have finalised arrangements for the new currency to begin circulation from December 15, 2022 after its launch by President Buhari.

“The new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall cease to be a legal tender.”

Once the new banknotes have been designed, it is envisaged that Nigerians will exchange their old banknotes for the new ones.

The CBN Governor is also concerned about the existing storage of Nigerian cash.

According to him, the majority of the country’s currency notes were outside of bank vaults, and the CBN would not permit this to continue.

Emefiele added, “To be more specific, as of the end of September 2022, available data at the CBN indicates that N2.7 trillion out of the N3.3 trillion currency in circulation was outside the vault of commercial banks across the country and supposedly held by members of the public.

“Evidently, currency in circulation has more than doubled since 2015, rising from N1.46 trillion in December 2015 to N3.2 trillion as of September 2022. I must say that this is a worrisome trend that must not be continued to be allowed.”

According to him, the CBN initiative will assist in addressing a number of national security challenges, including kidnapping and terrorism.

He believes that terrorists and kidnappers use the big surplus of cash to fund their criminal activities.