Why The CBN Is Changing Naira Notes And What It Means For The Nigerian Economy

“We’ve Lost Track Of N2.7 Trn Out of N3.2 Trn Currency In Circulation” as EFCC issues warning to banks, Bureau De Change operators over redesigned naira notes

Godwin Emefiele, Central Bank governor, has revealed that the apex bank has lost track of N2.7 trillion of the country’s currency currently in circulation.

Mr. Emiefele made this disclosure in a statement on Wednesday during the CBN governor’s special press briefing in Abuja.

The apex bank boss revealed that about 80 per cent of the country’s currency in circulation was outside the vaults of commercial banks across the country.

He noted that Nigerians were hoarding bank notes, refusing to take them to banks.

“To be more specific, as at the end of September 2022, available data at the CBN indicate that N2.73 Trillion out of the N3.23 trillion currency in circulation, was outside the vaults of Commercial Banks across the country, and supposedly held by the public. Evidently, currency in circulation has more than doubled since 2015; rising fromN1.46 trillion in December 2015 to N3.23 trillion in September 2022,” Mr Emefiele said.

The expose comes as the apex bank announced plans to unveil new naira notes.

The Executive Chairman of Economic and Financial Crimes Commission (EFCC), Abdulrasheed Bawa, has vowed to go after hoarders of naira, as the redesigned currency is set for release.

Naira Diary that on December 15, the Central Bank of Nigeria (CBN) will release the redesigned naira notes of N200, N500 and N1000.

In response to the decision by the CBN, the EFCC boss said Bureau De Change operators should be wary of persons who will try to use the BDC outlets to offload the illegal money they have been hoarding.

Bawa also urged commercial banks to adhere to their obligations of reporting suspicious transactions done by their customers, as the EFCC will go after any financial institutions that operate contrary to the laws.

He said the redesigned naira notes is a well-considered and timely response, hinting that it will aid in currency management within the country.