CBN Expresses Concern Over Nigerians Hoarding 85% Of Cash In Circulation

…To redesign, issue new 200, 500, 1,000 naira notes in December

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has expressed concern about the fact that Nigerians are hoarding 85 per cent of the cash in circulation, even as it disclosed that the bank would issue newly designed 200, 500, and 1,000 Naira notes by December 15, 2022.

Emefiele disclosed this yesterday, in Abuja during a news conference, where he added that as of January 31, 2023, existing notes would cease to be considered legal money.

He also asked Nigerians to deposit their Naira notes at their banks; noting that deposits of less than N150,000 will not be charged a deposit fee.

Emefiele noted that the redesign of Naira notes would prevent terrorism and kidnapping ransom payments; as well as reduce the use of counterfeit notes.

The CBN Governor said: “Bank charges for cash deposits are suspended with immediate effect.”

Further, he disclosed that over 80 per cent of the total cash in circulation was outside the banking system. “N2.73 trillion out of N3.23trillion exists outside the commercial bank,” he added.

Meanwhile, the apex bank governor, who celebrated the first anniversary of the eNaira launch in Lagos, said the cashless economy agenda of the CBN will be nationwide.

He said the CBN has provided the entire necessary infrastructure to enable the cashless economy journey to go nationwide.

The governor said there will be breaking news on Wednesday (tomorrow) on the nationwide cashless journey.

He added that there is going to be a special bankers committee meeting on Wednesday in this regard.

“We assure you that we will continue to act and to encourage innovation and protect the interests of the consumers,” he said.