The Central Bank of Nigeria (CBN) has initiated the gradual phasing out of the N200, N500, and N1,000 old naira notes, replacing them with redesigned currency, as confirmed by the Acting CBN Governor, Folashodun Shonubi.
This development was made public after the conclusion of the apex bank’s Monetary Policy Committee (MPC) meeting in Abuja.
During the meeting, the CBN also decided to raise the Monetary Policy Rate (MPR), which is a measure of interest rate, from 18.5% to 18.75%.
Responding to questions from journalists, Shonubi explained the rationale behind the process, stating, “When a currency is printed and circulated, it undergoes several cycles until it becomes unfit for circulation and needs replacement. That’s precisely what we’re doing. We are retiring the old notes as they come in and replacing them with the new ones.”
The Acting CBN Governor emphasized that the objective is to maintain an optimal level of currency in circulation. The worn-out notes are being systematically exchanged with the new ones to ensure a smooth transition without any disruptions to the monetary system.
Shonubi highlighted the seamless nature of this replacement process, stating, “The transition from old to new notes will occur gradually and without any fanfare. As old notes are gradually withdrawn from circulation, the new notes will seamlessly take their place.”
Last October, the now-suspended CBN Governor, Godwin Emefiele, had announced plans to redesign the highest denomination naira bills (N200, N500, and N1,000) and had urged Nigerians to deposit their old notes before January 31, 2023, as they would no longer be considered legal tender beyond that date.
The ongoing process aligns with that earlier announcement and signifies the CBN’s commitment to maintaining the integrity and efficiency of the nation’s currency system.