Reasons Nigeria’s Central Bank is Redesigning the Naira

The President, Muhammadu Buhari, has unveiled the new banknotes at the state house of Abuja on Wednesday. He explained that the new notes have unique features that will make them hard to be counterfeited.

Speaking at the launch, the president explained that the newly approved ₦200, ₦500, and ₦1,000 banknotes have been “forfeited with security features that make them difficult to counterfeit.”

The president said that the redesigned currencies were locally produced by the Nigerian Security Printing and Minting (NSPM Plc.). In his speech, the president commended CBN Governor, Godwin Emefiele and his deputies for the initiative and also thanked the Managing 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”.

The design is said to be in line with international best practice which required central banks and national authorities to issue new or redesigned currency every five to eight years. The president noted that it has been twenty years since the last major redesign of Nigeria’s local currency.

“This implies that the Naira is long overdue to wear a new look”, he said. “A cycle of banknote redesign is generally aimed at achieving specific objectives, including but not limited to improving security of banknotes, mitigating counterfeiting, preserving the collective national heritage, controlling currency 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 Central Bank of Nigeria the power to issue and redesign the Naira. In line with this power, the Central Bank Governor approached me earlier in this year to seek permission to embark on a currency redesign project. I considered all the facts and reasons presented before me by the Central Bank.”

He also addressed “the urgent need to take control of currency in circulation” and “hoarding of Naira banknotes outside the banking system, the shortage of clean and fit banknotes in circulation”.

The CBN Governor, Godwin Emefiele said “the CBN will begin to redesign and re-issue the Naira for every five to eight years.” @centralbankng

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