Why We Redesigned Naira Notes — CBN

The Central Bank of Nigeria (CBN) has explained why it decided to redesign some naira notes.

It said the decision was taken because of the huge volume of counterfeit notes in circulation.

The apex bank also that it initiated the move the save the economy from sinking when it realised 85 percent of notes are outside the banking system.

While decrying the hoarding of notes by Nigerians, the bank said the act fuels the black market/underground economy like terrorism, money laundering and counterfeiting, thereby increasing cash management expenditure (cost of printing new notes)

Speaking during the 2022 workshop for finance correspondents in Nigeria in Port Harcourt, with the theme: boosting depositors’ confidence amidst emerging issues and challenges in the banking industry, the Director of Currency Operations in the CBN, Ahmed Umar, stated the government did not repaint the banknotes but redesigned them to curb counterfeiting and other security challenges.

Stating that the new denominations of notes are laced with security features to ward-off counterfeiters, Umar, who was represented by Amina Giwa, said: “We redesigned, not repainted the banknotes. In redesigning you can change colour or reduce the size. The ink is a newer technology with security features. The main purpose for redesigning was to solve a problem, and we had limited time to solve that problem or we would sink. We don’t care about aesthetics.

“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 huge logistical implications.

“It is highly recommended that every five to eight years, you redesign your currency. It is done really to stay ahead of counterfeiters. In the United States for example, in 2007 the $100 note was issued and then redesigned in 2013. In the United Kingdom, the GBPS 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 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 redesign and the N100 note has been in circulation for 8 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.”