Why I Authorised The Redesign of Nigeria’s Currency – Buhari

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Contrary to the view that Godwin Emefiele, governor of the Central Bank of Nigeria initiated the redesign of Nigeria’s Naira, President Muhammadu Buhari says he authorised the CBN

 to redesign the N200, N500, and N1000 Nigerian banknotes in the last quarter of 2022.

Addressing Nigerians in a nationwide broadcast at 7 am on Thursday, the President said the policy became necessary to restore the statutory control of the Central Bank of Nigeria, CBN, over money in circulation.
He said these activities were being carried out within the ambit of the Constitution, the relevant law under the CBN Act 2007, and in line with global best practices.

According to him, in 2015 when his administration commenced its first term, Currency-in-Circulation was only N1.4 trillion.

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READ ALSO: BREAKING: Buhari Increases Validity Of Old N200 Notes

However, the proportion of currency outside banks grew from 78%in 2015 to 85% in 2022. “As of October 2022, therefore, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking System while N2.7 trillion remained permanently outside the system; thereby distorting the financial policy and efficient management of inflation.”

He said the huge volume of Bank Notes outside the banking system proved to be practically unavailable for economic activities and by implication, retarded the attainment of potential economic growth.

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So far, the President said about N2.1 trillion, representing about 80 percent of the banknotes previously held outside the banking system, had been successfully retrieved.

He explained that the new monetary policy has also contributed immensely to the minimization of the influence of money in politics.

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“This is a positive departure from the past and represents a bold legacy step by this administration, towards laying a strong foundation for free and fair elections,” he said.

To further ease the supply pressures, Buhari said he approved that the old N200 bank notes be released back into circulation and that they should also be allowed to circulate as legal tender with the new N200, N500, and N1000 banknotes for 60 days from February 10, 2023, to April 10, 2023, when the old N200 notes cease to be legal tender.

Meanwhile, the President urged Nigerians to make use of the platforms and windows provided by the CBN to deposit their old notes.

 

 

 

 

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