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Onitsha main market traders have reported to the Central Bank of Nigeria (CBN) that the redesigned naira notes of N1000, N500 and N200 are being sold in the market by people suspected to be agents of commercial banks in the area.
They said because of the dark deals, commercial banks were reluctant to dispense the new notes to the public.
The traders made the report to the Anambra State Branch Controller of the CBN, Benedict Maduagwu during CBN Sensitization of Stakeholders on the Currency Redesign in Anambra on Thursday at market leaders’ office hall, Onitsha, Main Market.
As a consequence, the Chairman of Onitsha Main Market, Innocent Ezeoha, implored the CBN to come to the market and exchange the new currency notes for the traders.
Responding, the CBN branch controller, Mr Madugwu said the apex bank would henceforth mount surveillance on the commercial banks in the area over the development, warning the banks that every money allotted to them had security codes.
He restated that the CBN would sanction commercial banks that would hoard the new naira notes.
He restated that “Currency management is a key function of the Central Bank of Nigeria, as enshrined in Section 2 (b) of the CBN Act 2007, adding “the integrity of a local legal lender, 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.”
Madugwu’s address read in part, “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.
“Some of these challenges primarily include: First, a significant hoarding of banknotes by members of the public, with Statistics showing that 82.72 trillion out of the 3.26 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.
“This statistic shows that 84.71 per cent of the currency in circulation are outside the vaults of commercial banks, with only 15.29 per cent in the Central Bank and
“Second, is the worsening shortage of clean and fit banknotes with the attendant negative perception of the CBN and increased risk to financial stability; third, there is increasing ease by criminals and risk of counterfeiting evidenced by several security reports received at the Central Bank of Nigeria.
“The benefits of the currency redesign to the Nigerian economy are enormous given that: This policy will help to control inflation as the exercise will bring the
hoarded currency into the banking system, thereby making monetary policy more effective.
“It will also help with better design and implementation of monetary policy as we would have much more accurate data on money supply and monetary aggregates. 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 new design and current series are to circulate side by side until January 31, 2023, when the current series ceases to be legal tender. We advise members of the public to ensure that they deposit cash holdings in these denominations at their commercial banks.
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