Redesigned Naira Notes: CBN To Monitor Banks For Compliance

The Central Bank of Nigeria (CBN) has said it will be  monitoring commercial banks to ensure that they comply with the directive of loading the redesigned naira notes in their Automated Teller Machines (ATMs).

Ahmed Umar, the CBN Director of Currency Operations, disclosed this in Abuja on Monday at the Training Session for State Directors, National Orientation Agency (NOA) on Redesign of Currency Notes Policy.

Umar said that the CBN’s directive was to implement the January 31 deadline withdrawal of old naira notes in circulation.

“We want to use this training session to pass message that CBN has enough currency notes to go round the general public.

“We, CBN management, have mandated banks to stop putting old notes in their ATM machines. They should only put the new notes.

“And there is serialisation of the policy that they can put either N500, N1,000 or N200 note, which ever the denomination they have or combination of any of those notes, they should just put a new note in their machines.

“We are going to monitor to ensure that the banks comply and if they don’t, we have penalty for non compliance,” he said.

According to him, in many countries of the world, it takes few years to change a currency note design.

“In our own case, what we had was basically over 20 years of having the same design of notes.

“Over that period, what it did to us was to create avenue for some people to master the act of counterfeiting the note.

“In our own case, what we have is the minimum of 17 years or more for us to redesign our currency.

“If you notice tge N1,000 note that was introduced in 2005, it took 17 years for us to redesign it.

"N500 and N200 notes were also redesigned after 21 years and 22 years respectively.

“So, if currency notes stay too long in the system, there is a tendency that people who counterfeit make a lot of efforts to produce the same notes.

“So, that is why there is need to change our notes regularly.”

He disclosed that another reason is that N500 and N1,000 constitute 99 per cent of the currency notes that are being targeted for counterfeiting.

“It is simple logic, the effort you put to counterfeit N1000 is the same effort you put to counterfeit N5.

“So, why will they waste their energy doing small note; they always target the higher note, particularly N1000 because of values attach to it,” he said.

The CBN had earlier issued a directive to the banks to put the new notes in their ATMs and stop giving them out to customers over the counter.

This followed complaints by Nigerians who had not been able to access the redesigned notes since it was rolled out on December 15, 2022.