Naira Redesign Will Reduce Cash Management Cost, Says CBN

The Central Bank of Nigeria (CBN) has disclosed that the redesigned naira notes are targeted to reduce the cost of cash management in Nigeria.

The CBN Deputy Governor, Corporate Services Edward Adamu, disclosed this during his speech at the end of the 2022 CBN Governor’s Golf Cup in Abuja.

The redesigned note was unveiled by President Muhammadu Buhari on November 23, consisting of N200, N500 and N1,000 respectively.

Adamu said the country’s currency management is the key function of the CBN, which faced daunting challenges which have continued to grow.

The CBN spent the sum of N58.6bn to print 2.52 billion units of notes valued at N1.1trn in 2020.

The currency printing cost, however, indicated a significant decrease year-on-year as it spent N75.5bn and N64.04bn in 2019 and 2018 respectively for the same purpose.

He said, “The integrity of a local legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy are some of the hallmarks of a great Central Bank.

“However, currency management has faced several daunting challenges that have continued to grow in scale and complexity with attendant and unintended consequences for the integrity of both the CBN and the country.

“These challenges include significant hoarding of banknotes by members of the public, with statistics showing that over 80 per cent of currency in circulation are outside the vaults of commercial banks;

“The worsening shortage of clean and fit banknotes in circulation, high cost of cash management, several security reports evidencing increasing risk and ease of counterfeiting.

“We believe that redesigning the current N200, N500 and N1,000 banknotes which will cease to be legal tender on January 31, 2022, will certainly reduce the cost of cash management, reduce volume of cash in circulation, disrupt counterfeiting activities and enhance adoption of digital/electronic transaction channels.”

However, Adamu said, CBN the Governor’s Golf Cup provides the Bank with an important feedback opportunity from golfers and elite members of the public on the policies and initiatives of the CBN.

He revealed that through this golf tournament, the bank has paid attention to how to actualise general growth in the nation’s economy.

Adamu added that the tournament has also helped to strengthen the spirit of friendship and interaction among participants and organizers thereby creating a suitable recreational atmosphere among golfers.

He said, “This year’s edition marks the 15th year anniversary of the tournament organized in partnership with the IBB International Golf & Country Club, Abuja”.