The CBN Governor said part of the reason for the change is because 80 per cent of the Naira in circulation is circulating outside the banking system, triggering inflation and weakening the national currency.
By Ishaya Ibrahim, News Editor
The Central Bank of Nigeria (CBN) on Wednesday announced the withdrawal of N200, N500 and N1000 notes from circulation commencing with immediate effect, and that they would be replaced with newer notes from December 15 this year.
In a special announcement made today, the CBN governor, Godwin Emefiele, said the old notes would cease to be legal tender from January 31, 2023.
He said the apex bank has received the approval of the Federal Executive Council (FEC) to effect the change of the notes.
He said Buhari is expected to launch the new Naira notes.
Emefiele said the decision to change the national currency was both economic and security.
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He said 80 per cent of the Naira in circulation was circulating outside the banking system, triggering inflation and weakening the currency.
On security, he said ransom payments have resulted in putting enormous cash in the hands of terrorists.
Asked if he was hopeful that the Naira could appreciate as a result of the change, Emefiele said yes, but added that he didn’t want to speculate.