Why Nigeria CBN dey design new naira notes

Di Central Bank of Nigeria (CBN) don announce plans to komot di naira notes wey dey for circulation and produce new ones. Govnor of di apex bank Godwin Emefiele make dis announce for one press briefing on Wednesday 26 October. For statement di CBN tok-tok pesin Osita Nwanisobi send give BBC Pidgin, Emefiele say di management of di bank seek and obtain di approval of President Muhammadu Buhari to redesign, produce, and circulate new series of banknotes at N100, N200, N500, and N1,000 levels. Why CBN dey roll out new notes Emefiele tok say di CBN dey face problem wit di management of di current series of banknotes wey dey circulation, especially di ones wey dey outside di banking system for Nigeria. E say currency management na key function of di bank, wey dey for Section 2 (b) of di CBN Act 2007. But dem say dis function dey face many challenges wey dey increase. Emefiele say one of di challenges na say members of di public dey hoard banknotes. E follow tok say statistics show say ova 80 percent of currency wey dey for circulation dey outside di vaults of commercial banks. Anoda challenge na say dirty and unfit banknotes dey for circulation and dis one dey give CBN bad image and e dey increase risk of financial instability. CBN also tok say di currency wey dey for circulation dey increase risk of fake notes. "For recent years, di CBN don record significantly higher rates of counterfeit especially for di higher denomination of N500 and N1,000 banknotes," Emefiele tok. E say according to global best practice, central banks suppose dey redesign, produce and circulate new currency every 5–8 years, but CBN neva redesign di naira for di past 20 years.  Wen e go start Di CBN govnor say dem don finalise arrangements for di new currency to begin circulation from December 15, 2022. E say di new notes and di existing ones go remain legal tender and circulate togeda until January 31, 2023 wen di existing notes no go dey useful again. "Accordingly, all Deposit Money Banks wey dey currently hold di existing denominations of di currency fit start to dey return di notes back to di CBN effective immediately. Di newly designed currency go dey released to di banks in di order of First-come-First-serve basis," Emefiele tok. Di CBN govnor urge bank customers to begin pay di existing into dia bank accounts so dem go fit withdraw di new banknotes once circulation start for mid-December 2022. "All banks dey expected to keep open, dia currency processing centers from Monday to Saturday to accommodate all cash wey go dey returned by dia customers," im tok. Bank charges don dey suspendedEmefiele tok say for dis transition from existing to new notes, bank charges for cash deposits don dey suspended wit immediate effect. "Therefore, DMBs gaz note that no bank customer go bear any charge for cash wey dem return or pay into dia accounts," e tok. E tell members of di public say di existing notes still dey valid and make dem no reject am as means of exchange for purchase of goods and services. "We go like use dis opportunity to reassure di general public say di CBN go continue to monitor both di financial system in particular, and di economy in general, and always act in good faith for di achievement of di Bank’s objectives and di betterment of di kontri," di CBN govnor add.