CBN Dutse sensitize marketers on naira redesigned

CBN Dutse sensitize marketers on naira redesigned 

From Ali Rabiu Ali, Dutse 

The Central Bank of Nigeria (CBN) Dutse branch has sensitized marketers of Dutse ultra modern market on naira redesign on Wednesday. 

The three redesigned denomination of N1000, N500, and N200 banknotes were unveiled on November 23, 2022, by president Muhammad Buhari.

Hajiya Sa'adatu Ibrahim Aminu, the branch controller CBN Dutse, said the currency management is a key function of the Central Bank of Nigeria, as enshrined in section 2 (b) of the CBN act 2006. Indeed, she said the integrity of a local legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy are some of the hallmarks of a great Central Bank.

Sa'adatu said in recent times, however, currency management in Nigeria has faced several challenges that have continued to grow in scale and sophistication with unintended consequences for the integrity of both the CBN and the country. 

According to her, the challenges include: a significant hoarding of banknotes by members of the public, with statistics showing that N2.72 trillion out of N3.26 trillion currency in circulation as of June 2022 was outside the vaults of commercial banks across the country, and supposedly held by members of the public. 

She said this statistics shows that 84.71 percent of currency in circulation are outside the vaults of commercial banks, with only 15.29 percent in the Central Bank and commercial banks vaults.

Another challenge, " is the worsening shortage of clean and fit banknotes with attendant negative perception of the CBN and increased risk to financial stability; and there is increasing ease by criminals and risk of counterfeiting evidenced by several security reports received at the Central Bank of Nigeria" she said.

On the benefits, Sa'adatu said the benefits of the currency redesigned to Nigerian economy are enormous given that; " this policy will help to control inflation as the exercise will bring the hoarding currency into the banking system, thereby making monetary policy more effective"

" It will also help with better designed and implementation of monetary policy as we would have much more accurate data on money supply and monetary aggregate"

" We believe that this exercise would help in increasing financial inclusion, moving towards a more cashless economy, and ensuring greater formalization of the Nigerian economy"

" The currency redesigned would assist in the fight against corruption as the exercise would rein in the higher denomination used from corruption, and the movement of such funds from the banking system could be tracked easily" she said.

The controller said the global best practices is for central banks to redesign, produce and circulate new local legal  tender every 5-8 years, the Naira had not been redesigned in almost 19 years.

In the basis of these trends, she said problems, facts and benefits of currency redesign, and in line with section 2 (b) section 18 and section 19, subsection (a) and (b) of the CBN act 2007, the management of the CBN sought and obtained the approval of president Muhammad Buhari to redesign, produce, and circulate new series of banknotes at N200, N500, and N1000 levels.

In his part, the chairman Jigawa marketers Alhaji Yahaya Kwaimawa, appreciate the Central Bank of Nigeria for it's efforts in redesign the naira and imposed new e-naira policy and cashless policy with a view to reduce armed robbery and other Money laundering across Nigeria.

He assured that his leadership will sensitize people on the importance of Naira redesign policy.