Let me emphasize that only an incorruptible leader of the President’s stature can give such approval to the CBN. – Emefiele
By Abdallah el-Kurebe
The Governor of the Central Bank (CBN), Godwin Emefiele has said that it has taken the incorruptibility of a leader found in President Muhammadu Buhari’s stature that got the approval for the CBN to embark on the ongoing currency redesign program.
The Central Bank Governor who briefed newsmen after he returned from his meeting with Mr. Preesident, said “the Central Bank of Nigeria hasn’t had the opportunity to embark on such a currency redesign program in the last 19 years.”
According to him, the currency redesign programme became an intractably imperative because, “for 19 years, the CBN was not able to conduct this vital aspect of its mandate, whereas this should normally have been done within a 5–8 year window.”
Read the full statement below:
As you can see, I’ve just ended a meeting with Mr. President. The purpose of the meeting is to provide Mr. President with updates about the implementation status of the CBN currency redesign program currently going on across the Federation.
First, I’d like to continue to thank Mr. President for giving the CBN the approval to embark on this ambitious program because, as I have said in the past, the Central Bank of Nigeria hasn’t had the opportunity to embark on such a currency redesign program in the last 19 years, and indeed, let me emphasize that only an incorruptible leader of the President’s stature can give such approval to the CBN.
From the onset of this currency redesign program, we made it clear that for 19 years, the CBN hasn’t been able to conduct this vital aspect of its mandate, whereas this should normally have been done within a 5–8 year window.
Our aim is mainly to make our monetary policy decisions more efficacious, and as you can see; we’ve started to see inflation trending downward and exchange rates relatively stable. Secondly, we aim to support the efforts of our security agencies in combating banditry and ransom-taking in Nigeria through this program, and we can see that the military is making good progress in this important task in Nigeria.
Available data at the Central Bank of Nigeria have shown that in 2015, the amount of currency in circulation was only NI.4 trillion. As of October 2022, the amount of currency in circulation had risen to N3.23 trillion, of which only N500 billion was within the banking industry and N2.7 trillion was held permanently in people’s homes. Ordinarily, when the CBN releases currency into circulation, it is meant to be used, and after the effluxion of time, it returns to the CBN, thereby keeping the volume of currency in circulation under the firm control of the CBN.
So far and since the commencement of this program, we have collected about NI.9 trillion, leaving us with about N900 billion (N500 billion + NI.9 trillion). To achieve effective distribution of the new currency, the CBN has taken the following steps:
a. We held several meetings with our Deposit Money Banks (DMBs) and provided them with guidance notes on the processes they must adopt in the collection of old notes and the distribution of the new notes to all Nigerians. These include specific directives to DMBs to load new notes into their ATMs nationwide to ensure an equitable/transparent mechanism for the distribution of the new notes to all Nigerians.
b. We commenced a nationwide sensitization campaign through print and electronic media to create awareness of the redesigned notes among Nigerians, including collaboration with the National Orientation Agency to reach all Nigerians across multiple channels.
c. We deployed 30,000 Super Agents nationwide to assist in our Cash Swap initiative in the hinterlands, rural areas, and regions underserved by banks in the Country to ensure that the weak and vulnerable ones amongst us can swap/ exchange their old notes.
d. We deployed all our staff, particularly the assistant directors, deputy directors, and directors in Abuja, to proceed to all CBN branches nationwide to join the mass mobilization campaign and monitoring programs, working with the deposit money banks, agents, and our branch controllers across the 36 states of the Federation. This is meant to ensure compliance with all our guidelines already issued for the smooth implementation of the program. Although we have received some reports of breaches by some bank branches, we have agreed with the Executive Chairmen of the EFCC and ICPC to assist us, by sending their staff to all CBN and DMB branches nationwide to join in monitoring the implementation of these guidelines. The aim is to ensure compliance with the laid-down guidelines.
e. We are happy that the exercise has achieved a success rate of over 75 percent of the N2.7 trillion held outside the banking system. Nigerians in rural areas, villages, the elderly, and the vulnerable have had the opportunity to swap their old notes, leveraging the Agent Naira Swap initiative as well as the CBN Senior Staff nationwide sensitization team exercise.
f. Aside from those holding illicit/stolen Naira in their homes for speculative purposes, we do aim to give all Nigerians that have Naira legitimately earned and trapped, the opportunity to deposit their legitimately trapped monies at the CBN for exchange.
7. Based on the foregoing, we have sought and obtained Mr. President’s approval for the following:
i. A 10-day extension of the deadline from January 31, 2023, to February 10, 2023, to allow for the collection of more old notes legitimately held by Nigerians and achieve more success in the cash swap in our rural communities, after which all old notes outside the CBN lose their legal tender status. Our CBN staff, currently on mass mobilization and monitoring with officials of the EFCC and ICPC, will work together to achieve these objectives.
ii. A 7-day grace period, beginning on February 10 to February 17, 2023, in compliance with Sections 20(3) and 22 of the CBN Act allowing Nigerians to deposit their old notes at the CBN after the February deadline when the old currency would have lost its Legal Tender status.
We, therefore, appeal to all Nigerians to work with the Central Bank of Nigeria to ensure a hitch-free process for the implementation of this very important program.
Thank you.
GODWIN EMEFIELE GOVERNOR CENTRAL BANK OF NIGERIA
