Posted by The Central Bank of Nigeria (CBN) has finally caved in, extending the deadline for exchanging old naira notes for new notes until February 10.
The extension became necessary due to the difficulty Nigerians had in exchanging their old notes for new notes.
In a statement made on Sunday, CBN Governor Godwin Emefiele said the choice to redesign the Naira was already paying dividends, with inflation beginning to fall and exchange rates remaining reasonably constant.
He noted that under this approach, the military is already making good success in eradicating banditry and ransom-taking in Nigeria.
Emefiele stated that according to available data, the amount of cash in circulation in 2015 was barely N1.4 trillion.
However, by October 2022, the total amount of cash in circulation had climbed to N3.23 trillion, with just N500 billion held in the banking system and N2.7 trillion retained permanently in people’s homes.
The CBN Governor stated that when the CBN releases cash into circulation, it is intended to be used and then returned to the CBN, thereby keeping the volume of currency in circulation under the CBN’s strong control.
“So far and from the start of this scheme, we have collected roughly N1.9 trillion, leaving us with about N900 billion,” he stated.
“Aside from those hoarding illicit or stolen naira in their houses for speculative purposes, we do seek to enable all Nigerians that have naira properly earned and trapped, the chance to deposit their legitimately trapped funds to the CBN for exchange.
“A seven-day grace period, beginning February 10 and ending February 17, 2023, in accordance with Sections 20(3) and 22 of the CBN Act, allowing Nigerians to deposit old cash with the CBN beyond the February deadline, when the old currency would have lost its Legal Tender status.”