Buhari explains why he approved the new Naira banknotes, saying that they have unique features that will make them hard to be counterfeited.
By Emma Ogbuehi
The President, Muhammadu Buhari, has explained his reasons for approving the redesign of the Naira banknotes, stressing that the new currencies have been fortified with security features that make them difficult to counterfeit
The exercise, he said, is aimed at mitigating counterfeiting, preserving the collective national heritage, controlling currency in circulation, and reducing the overall cost of currency management.
The redesign, the President noted is in line with international best practice which required central banks and national authorities to issue new or redesigned currency notes every five to eight years.
Buhari made the remarks while explaining in detail the considerations for his approval to the Central Bank of Nigeria, CBN, to redesign the N200, N500 and N1000 banknotes
While unveiling the new Naira banknotes which preceded the Federal Executive Council, FEC, meeting in Abuja, on Wednesday, Buhari expressed delight that the redesigned currencies were locally produced by the Nigerian Security Printing and Minting, NSPM Plc.
Buhari, who commended the CBN Governor Godwin Emefiele and his deputies for the initiative, also thanked the Managing Director, Mr. Ahmed Halilu, Executive Directors and staff of NSPM PLC “for working tirelessly with the apex bank to make the currency redesign a reality, and for printing the new Naira notes within a comparatively short time.”
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He noted that it was now almost 20 years since the last major redesign of the country’s local currency was done, adding that implied that the Naira was long overdue for a redesign.
The President said: “A cycle of banknote redesign is generally aimed at achieving specific objectives, including, but not limited to improving security of banknotes.
“It is also aimed at mitigating counterfeiting, preserving the collective national heritage, controlling currency in circulation, and reducing the overall cost of currency management.
‘‘As is known, our local laws, specifically the Central Bank of Nigeria Act of 2007, grants the CBN the power to issue and redesign the Naira.
“In line with this power, the bank’s governor approached me earlier in this year to seek my permission to embark on a currency redesign project. I considered all the facts and reasons presented before me by the CBN.”
He expressed the hope that the new notes would address the urgent need to take control of currency in circulation, adding that it would also address the menace of hoarding Naira banknotes outside the banking system and curb the shortage of clean and fit banknotes in circulation.
Design was locally done, he stated.
Buhari said the redesigned notes would equally address the increase in counterfeiting of high-denomination Naira banknotes.
“It is on this basis that I gave my approval for the redesign of the N200, N500 and N1000 banknotes.
“While this may not be apparent to many Nigerians, only four out of the 54 African countries print their currencies in their countries, and Nigeria is one, hence a majority of African countries print their currencies abroad and import them the way we import other goods.
“That is why it is with immense pride that I announce to you that these redesigned currencies are locally produced right here in Nigeria by NSPM Plc,’’ he said.
In his remarks, Emefiele explained that in line with global practice, the naira was supposed to be redesigned and re-issued between five and eight years.
He regretted that in Nigeria, the naira had not been redesigned for about 19 years now because of lack of political will from the previous leaders.
He said: “In the past, I have to confess that attempts by the CBN to redesign and reissue the naira notes have been resisted. It is only President Muhammadu Buhari that has the courage to do so.”
Emefiele said it was the mandate of the CBN to redesign and reissue the notes, assuring that henceforth, the exercise would take place after five to eight years.
“After today, the CBN will begin to redesign and re-issue the naira for every five to eight years,” he said.
Also speaking on the issue, the Director of Currency Operations, Mr. Bello Umar, said: “From Thursday, that is tomorrow (today), we will start distribution to CBN branches across the country, so that whenever we are set to launch, maybe at a later date, we already have the notes across the country.”
The new notes are expected to be in circulation as from December 15, and will circulate side-by-side with the old notes until January, 31 2023, when the latter would cease to be legal tender.
The CBN had on Wednesday, October 26, announced the withdrawal of N200, N500 and N1000 notes from circulation commencing with immediate effect, adding that they would be replaced with newer notes from December 15 this year.
In a special announcement on the exercise, Emefiele, said the old notes would cease to be legal tender from January 31, 2023.
However, he made a U-turn on Tuesday, saying the CBN won’t wait till December 15 anymore as the President would unveil the new notes on Wednesday.
He said, “100 days is enough for any person from any part of Nigeria to deposit his money in the bank and get his money when the new notes are released.