President Muhammadu Buhari has said that his government will not change its mind about the Central Bank of Nigeria’s (CBN) plan to redesign Nigeria’s N1,000, N500, and N200 bills.

Buhari said this on Wednesday night in London, UK, right after he met with King Charles III at Buckingham palace.

Godwin Emefiele, the governor of the Central Bank of Nigeria (CBN), announced last month that the naira would be redesigned and President Buhari has asserted that this redesign will be implemented.

As the government backs the CBN’s plan to change the naira, all Nigerians should know a few things about the program.

Based on information from the CBN and the Chartered Institute of Bankers of Nigeria (CIBN), here are some things you should know.

Reasons for introducing new banknotes

This will aid in managing currency in circulation and tightening the money supply to combat rising inflation, which reached its highest level in 17 years in September 2022.

It will address the public’s hoarding of banknotes, as over 80% of cash in circulation is held outside the vaults of commercial banks.

It is intended to address the growing lack of clean and functional banknotes.

It is also intended to combat the forgery of Naira banknotes, which has been documented in multiple cases.

In addition, it will lower the occurrence of terrorism and kidnapping by limiting the availability of large sums of cash used as ransom.

It is developed to advance the CBN’s cashless economy and financial inclusion initiatives (Banking the unbanked)

Lastly, it is an economic strategy designed to bolster the naira.

What you should know

CBN will replace the current N200, N500, and N1000 banknotes with new currency notes.

The new currency notes will become legal tender on December 15, 2022.

On January 31, 2023, the former Naira notes will cease to be legal money.

For future collections, banks have been instructed to maintain all of their deposit centers open Monday through Saturday.

There are no limits on the amount that individuals or businesses can deposit, and no bank customer will incur fees for cash returned to or paid into their accounts during implementation.

In January 2023, a new cashless policy will be revealed.

Call to Action

All old banknotes should be deposited at your nearest bank branch (N200, N500 and N1000)

If you do not have a bank account, visit the branch of your choice closest to you to open one and deposit all old currency (N200, N500 and N1000).

Perform standard banking transactions using your bank’s mobile app or USSD.