This is a very huge one, Punch reports: “The Governor, Central Bank of Nigeria, Godwin Emefiele, has announced that the bank would release re-designed Naira notes by December 15, 2022. He also said that existing notes would cease to be regarded as legal tender by January 31, 2023. Emefiele disclosed this during a press briefing in Abuja on Wednesday.

“The CBN said that it is worrisome that 85 percent of the currency in circulation is being hoarded by Nigerians. He further urged Nigerians to proceed to their banks to deposit their Naira notes, adding that the deposit fee would be waived for transactions below N150,000. Emefiele added that the redesigning of Naira notes would help to curb counterfeit notes, as well as hamper ramson payment to terrorists and kidnappers.”

Some people are crying now because all the game plays have now been aborted. A score against ramson-seeking bandits. A score against bribing-politicians. A score against “underworld” citizens.

This is a draw game since it has no way to technically appreciate the value of Naira even as it will cost money to print the new notes. But that is countered when you see all the underground vaults which must be evacuated by Jan 31, 2023 increasing liquidity. Emefiele scored 3 here but 3* also went against his team. Score 3-3 but a great game nonetheless.

*Three against: too late for regime, does nothing on productivity, opens a channel to spend scarce resources.

Notes by CBN Governor on this project

Good afternoon Ladies and Gentlemen, and welcome to this special press briefing of the Bank. We have called this gathering to inform relevant stakeholders and the general public of persisting concerns we are facing with the management of our current series of banknotes, and currency in circulation, particularly those outside the banking system in Nigeria.

As you all may be aware, currency management is a key function of the Central Bank of Nigeria, as enshrined in Section 2 (b) of the CBN Act 2007. Indeed, 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.

• In recent times, however, currency management has faced several daunting challenges that have continued to grow in scale and sophistication with attendant and unintended consequences for the integrity of both the CBN and the country. These challenges primarily include:
• Significant hoarding of banknotes by members of the public, with statistics showing that over 80 percent of currency in circulation are outside the vaults of commercial banks;
• Worsening shortage of clean and fit banknotes with attendant negative perception of the CBN and increased risk to financial stability;
• Increasing ease and risk of counterfeiting evidenced by several security reports.
• Indeed, recent development in photographic technology and advancements in printing devices have made counterfeiting relatively easier. In recent years, the CBN has recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes.
• Although global best practice is for central banks to redesign, produce and circulate new local legal tender every 5–8 years, the Naira has not been redesigned in the last 20 years.

On the basis of these trends, problems, and facts, and in line with Sections 19, Subsections a and b of the CBN Act 2007, the Management of the CBN sought and obtained the approval of President Muhammadu Buhari to redesign, produce, and circulate new series of banknotes at N100, N200, N500, and N1,000 levels.

In line with this approval, we have finalized arrangements for the new currency to begin circulation from December 15, 2022. The new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall seize to be legal tender.

Accordingly, all Deposit Money Banks currently holding the existing denominations of the currency may begin returning these notes back to the CBN effective immediately. The newly designed currency will be released to the banks in the order of First-come-First-serve basis.

Customers of banks are enjoined to begin paying into their bank accounts the existing currency to enable them withdraw the new banknotes once circulation begins in mid-December 2022. All banks are therefore expected to keep open, their currency processing centers from Monday to Saturday so as to accommodate all cash that will be returned by their customers.

For the purpose of this transition from existing to new notes, bank charges for cash deposits are hereby suspended with immediate effect. Therefore, DMBs are to note that no bank customer shall bear any charges for cash returned/paid into their accounts.

Members of the public are to please note that the present notes remain legal tender and should not be rejected as a means of exchange for purchase of goods and services.

We would like to use this opportunity to reassure the general public that the CBN would continue to monitor both the financial system in particular and the economy in general, and always act in good faith for the achievement of the Bank’s objectives and the betterment of the country.

CBN to Issue New Naira Notes From Dec 15, Old Notes Cease to Be Legal Tender Jan 31 2023

Please join Tekedia Capital portfolio startup, Byte – Community & payments, as it presents in First City Monument Bank(FCMB)’s LAUNCH. The event will take place at Hub One (10, Hughes Avenue, Alagomeji, Yaba) :

• Date: October 28th, 2022
• Time: 3pm – 6pm

See you at the LAUNCH by FCMB session. KHALID ISMAIL and team, good luck.

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To learn more about Tekedia Capital, go here

Nigeria’s Central Bank Digital Currency (CBDC), the eNaira, has recorded over 700,000 transactions worth N8 billion one year after its launch, according to the country’s central bank governor Godwin Emefiele.

The digital currency was launched last October amidst the intimidating growth of cryptocurrency. The Central Bank of Nigeria banned regulated financial institutions from carrying out crypto transactions, and as alternative, created the eNaira.

Emefiele, who disclosed this at a conference to mark the one-year anniversary of the eNaira in Lagos, explained that the digital currency is part of the apex bank’s plan to make Nigeria fully a cashless economy. He added that in the coming days, the CBN and the Bankers’ Committee would unveil plans which would ensure the cashless policy is fully integrated across the county.

Outside the financial industry, the governor said the central bank will be collaborating with other government’s agencies, including the Ministry of Humanitarian Affairs, to push the digital currency as well as its cashless policy using targeted welfare programs.

“Since its launch, the eNaira has offered Nigerians endless possibilities in using financial services thus, living up to the chosen slogan, ‘Same Naira, More Possibilities,’ as well as achieving some set out objectives.

“Specifically, there has been overwhelming interest and encouraging response from Nigerians and other parties across the world with 33 banks fully integrated and live on the platform; N3 billion has been successfully minted by the bank, N2.10 billion has been issued to financial institutions and about one million (919,000) customers have been on-boarded.

“Over 3,305 merchants have successfully registered on the eNaira platform across the country including Shoprite, Sahad Stores, A.A. Rano fuelling stations, Fraser Suites, November Cubes, among others; over 700,000 transactions amounting to about N8 billion have been recorded on the platform and over 2.5 million daily visits to the eNaira website,” he said.

Besides its push to steer Nigerians away from cryptocurrency through the eNaira, which it has long-advocated against, the CBN’s next goal is to close about 40% gap that exists in Nigeria’s financial inclusion goal.

Emefiele said the journey has been to make Nigeria a predominantly cashless economy where transactions are done with limited, little, or no cash.

“Banks have incurred a lot of costs in an attempt to embrace a cashless economy. We also had collaborations with mobile networks and had payment service banks (PSB) using all sorts of channels.

“The destination as far as I am concerned is to achieve 100 per cent cashless economy in Nigeria. I know that those who doubt us will say that 100 per cent cashless is unattainable.

“Yes, it is true but Nigeria must move from being a predominantly cash economy to a predominantly cashless economy.

“I want to say we have provided all the needed infrastructure that will enable us make cashless a nationwide journey. It is not something that some of us will like, but we would in the coming weeks and months make pronouncements that must make cashless go nationwide. I believe part of those pronouncements will begin from tomorrow and there will be some breaking news tomorrow.

“Even the bankers’ committee will hold a special bankers’ committee meeting tomorrow to deliberate on this, so let us expect the news,” he said.

Recording 700,000 transactions in a year is considered a low for the eNaira that has been in the global spotlight as the first CBDC to be launched worldwide. But Emefiele explained that the task ahead in promoting the eNaira is still huge – and will require a lot of efforts including collaboration with other stakeholders, especially the big players in Nigeria’s financial sector.

“As with most digital revolutions, the eNaira is a journey that started five years ago, precisely 2017. It is not a one-off event, but a journey of possibilities.

“Thus, the bank would continue to refine, fine-tune and upgrade it. Therefore, Nigerians should expect to see additional functionalities in the coming months, including the on-boarding of revenue collection agencies to increase and simplify collections and collaborating with the Ministry of Humanitarian Affairs through the creation of sector-specific tokens to support the federal government’s social programmes and distribution of targeted welfare schemes in a bid to lift millions out of poverty by 2025.

“Let me reiterate that the success of the eNaira project could not have come without the active collaboration of several stakeholders inside and outside the government. Let me use this medium to acknowledge the partnership and unwavering support of the Ministry of Communications and Digital Economy through National Information Technology Development Agency (NITDA) and the partnership with the Ministry of Humanitarian Affairs. I would also like to commend the African Fintech Foundry and Merchants and Consumers for onboarding and conducting their transactions on the eNaira Platform.

“The CBN acknowledges the daunting task ahead. We therefore call on all relevant stakeholders, including the Financial Institutions, Nigeria Inter-Bank Settlement Systems (NIBSS), FinTech groups, Telcos and merchants to collaborate, innovate, deepen and enhance the value of eNaira to Nigerians and to Nigeria. It is the Bank’s hope that the eNaira will drive the digital economy agenda and foster a more prosperous Nigeria,” he said.