Amby Uneze in Owerri
The
Central Bank of Nigeria (CBN) on Wednesday embarked on a sensitisation of the
features of the new Naira to Imo State with focus on traders at the popular
Relief market and other rural markets in Owerri municipal city.
Enthusiastic
traders turned out in their large numbers to learn about the features of the
new Naira notes which was introduced in the country last month.
Branch
Controller of CBN in the State, Mrs. Oyoburuoma Boma, who encouraged the
traders to imbibe in the new policy of the bank emphasised that it would be
beneficial to them, especially in their cashless transactions.
She
encouraged the point of sales (POS) agents to start making their transactions
in accordance with the cashless policy adding that it will help reduce theft
occasioned in the business world.
According
to her, when you go cashless, it will help prevent armed robbers that often
attack you and steal your money, there is everything to benefit from the CBN
policy.
Boma
also used the opportunity to educate the traders on how to recognise the new
currency notes, and warned
residents, market women and leaders not to pay charges while depositing the old
naira notes to their respective commercial banks in Imo state.
The branch Controller said by Section 17 of the CBN Act 2007
gives the CBN the sole right to issue naira notes and coins.
However, the CBN urged the citizens to make use of alternative
methods of deposit of the old naira notes through the POS, Electronic transfer,
USSD, and Internet Banking among others. It also insisted that the deadline
remains 31st of January, 2023 for the deposit of the old naira notes.
According to the CBN, “As we are all aware, Central Bank is
allowed by law to issue and manage the Nigerian Legal tender currency,
popularly known as the Naira Section 17 of the CBN Act 2007 gives the CBN the
sole right to issue naira notes and coins.
“When we issue new notes, Nigerians use them to buy goods and
services. As the notes change hands, they become dirty, torn, mutilated and
soiled. The Central Bank must remove the damaged notes and replace them with
new ones.
“As time goes on, more serious issues and challenges may arise,
necessitating the Bank to change and replace the old notes entirely. The global
best practice encourages the redesign of currency notes every 5 to 8 years. The
challenges and issues in our case are: Banknote Hoarding, Shortage of clean and
fit bank notes, Counterfeiting, Large Volumes of Currency in Circulation
outside Bank vaults, High cost of Cash Management Abuse, spray and sale
of the Naira.
“These issues and challenges made the Central Bank change and
redesign the higher denominations of N1000, N500 and N200 bank notes. Now that
we have changed and redesigned these higher denominations, we are here in the
relief market today, to explain and say that; only three of the current eight
denominations were redesigned, namely the N1,000, N500, and N200 banknotes. All
other banknotes- N5, N10, N20, N50, and N100 are not affected. The decision of
the CBN to redesign 3 denominations of the naira is not targeted at any group
or persons.
President Muhammadu Buhari launched the new naira bank notes on
November 23, 2022. The current N1,000, N500, and N200 banknotes that are being
phased out will circulate side by side with the redesigned N1,000, N500, and
N200 banknotes till January 31, 2023.
“The banknotes that are being phased out remain legal tender
till January 31st, 2023. They should not be rejected as a means of exchange for
the purchase of goods and services. Visit your commercial bank to deposit the
old notes. Those without bank accounts are encouraged to visit banks of their
choice to open accounts. Account opening is easy. You can also approach the
nearest CBN authorized agent to make your deposit if you reside in a rural
area.”
“There is no limit to deposits of N1,000, N500, or N200
banknotes an individual or corporate body can make, during the transition
period that expires on January 31st, 2023. For now, there are no charges on bank
deposits. I repeat, no charges on bank deposits for now.
“There is no outright exchange of new banknotes for old N1,000,
N500, N200 deposited in commercial banks. However, we are encouraged to explore
other payment channels such as eNaira, POS, Electronic transfer, USSD, Internet
Banking, Mobile money operators and agents, for banking transactions,” CBN
said.
The one-day sensitization programme witnessed staff of various
commercial banks using the opportunity to open new accounts to the traders.
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