Effective January 31, 2023, the existing N100, N200, N500, and N1,000 banknotes will cease to be accepted as a medium of exchange for any transaction conducted in Nigeria, the Central Bank of Nigeria has said.
The CBN Governor, Mr Godwin Emefiele, said this at a press conference on Wednesday in Abuja.
Emefiele said the apex bank, in line with global best practices has received the approval of President Muhammadu Buhari to redesign the bank notes new with new features.
He said when effective from December 15 this year, Nigerians who are in possession of the old notes should approach their banks for the new notes.
Explaining the rationale for the move, he said recent development in photographic technology and advancements in printing devices have made counterfeiting of currencies relatively easier.
According to him, the CBN had in recent times recorded significantly higher rates of counterfeiting especially at the higher denominations of N500 and N1,000 banknotes.
He also stated that there has been significant hoarding of banknotes by members of the public, with statistics showing that over 80 per cent of currency in circulation are outside the vaults of commercial banks.
Emefiele also identified 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, as other reasons for the new policy.
