The Central Bank of Nigeria (CBN) stated yesterday that the redesign of the Naira was given priority due to the pressing need to fight counterfeit currency and revive the struggling national economy.
According to the central bank, a considerable part of the currency in use is counterfeit.
Additionally, it said that after learning that more than 85% of banknotes are not in the banking system, it has taken the initiative to redesign the Naira in order to revive the faltering economy.
It criticised Nigerians for not depositing their cash and listed the negative effects of counterfeit money on the economy, including how it raises the cost of managing cash and promotes the growth of the black market and the underground economy.
The Director of Currency Operations at the CBN, Ahmed Umar, emphasised that the government did not repaint the banknotes but rather redesigned them to curb counterfeiting and other security challenges during this year’s workshop for finance correspondents in Nigeria, held in Port Harcourt with the theme: boosting depositors’ confidence amidst emerging issues and challenges in the banking industry.
Umar, represented by Amina Giwa, stated that the new banknotes were “redesigned, not repainted,” and were equipped with security mechanisms to deter counterfeiters. Altering the layout allows for new colours and smaller sizes. Ink is a cutting-edge method of adding extra security to documents.
The primary reason for the redesign was to fix a problem, and time was of the essence because otherwise, we would go down with the ship. Not that we’re concerned with appearances or anything.
“Only Nigeria Security does the printing. We print in Nigeria – Lagos, and Abuja. We don’t print outside the country. We fly notes by air and other means to states, which has substantial logistical implications.
“It is highly recommended that you redesign your currency every five to eight years. It is done really to stay ahead of counterfeiters. In the United States, for example, in 2007, the $100 note was issued and redesigned in 2013. In the United Kingdom, the GBP was first issued in 2011 and redesigned in 2016. In South Africa, the R20 was issued in 2009 and redesigned in 2016. In Canada, the $5 and $50 notes were issued in 2006/2004 and redesigned in 2013/2012.
“However, in Nigeria, the N1,000 note has been in circulation for 17 years without redesign; N500 has been in circulation for 21 years without redesign; N200 has been in circulation for 22 years without a redesign; N100 note has been in circulation for eight years without a redesign.
“It is important that the Nigerian public know that no new denominations are being introduced, no charges on deposits, and there is no limit on the amount that can be deposited.”