New Naira: Rich Nigerians put large sums of money in banks

Rich people and organizations with large sums of cash on hand have started depositing N1,000, N500, and N200 notes days after the Central Bank of Nigeria declared that the old N1,000, N500, and N200 notes should be sent to commercial banks.

Although there hasn’t yet been a rush by consumers, our reporters learned from sources and employees in the operations division of several commercial banks that there has been a gradual rise in the volume of cash and quantities being remitted by customers.

He regretted the “substantial hoarding” of the banknotes, which meant that N2.73 trillion out of the N3.23 trillion in money in circulation as of September 2022 was outside the vaults of the commercial banks throughout the nation. He also mentioned the growing difficulty and risk of counterfeiting, which was supported by various security reports, and the country’s conformity with the international standard that calls for the circulation of new legal tender every five to eight years.

He added that the redesign of the naira will strengthen efforts to promote a cashless economy, reduce instances of terrorism and abduction since they would have less access to big sums of money used for ransom, and help control the currency outside the banking system.

“In line with this approval, we have finalised arrangements for the new currency to begin circulation from December 15, 2022 after its launch by President Muhammadu Buhari. The new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall cease to be legal tender.”