PRESS REMARKS BY GOVERNOR GODWIN EMEFIELE ON ISSUANCE OF NEW NAIRA BANKNOTES

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.

I thank you for listening.

Godwin Emefelie

Governor