The Central Bank of Nigeria (CBN) has announced intentions to redesign and reissue the N200, N500, and N1000 currency denominations in an effort to control inflation and the nation's money supply.
With only four months until the general election of 2023, LEADERSHIP reports that if this policy is properly implemented, it will aid INEC, the organization responsible for managing elections, in monitoring campaign spending and reducing the prevalence of vote buying, which has become a threat to Nigeria's electoral system.
The CBN, which has been fighting inflation, said that more than N2.73 trillion from the N3.23 trillion outside the CBN vaults is already on the streets. The CBN stated that it wants to regulate the money supply by removing all cash from the economy, both inside bank vaults and in the hands of people.
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As a result, the apex said that it will start clearing out the country's supply of naira notes and granted Nigerians roughly 46 days to swap their old notes for new ones.
The newly designed N200, N500, and N1000 notes are anticipated to go into circulation on December 15, 2022, and the CBN governor Godwin Emefiele has stated that the current Naira notes will cease to be legal tender on January 31, 2023.
At the news conference, the governor of the Central Bank of Nigeria (CBN) emphasized that the management of the current series of banknotes and currencies in circulation, particularly those outside the Nigerian banking system, had proven difficult for the apex bank.
According to Section 2(b) of the CBN Act 2007, "Currency management is a crucial duty of the Central Bank of Nigeria. In fact, some of the characteristics of a great central bank are the integrity of local legal money, the effectiveness of its supply, and its ability to effectively implement monetary policy.
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