Following the issuance of new Naira notes, the Central Bank of Nigeria (CBN) has been able to lower the money outside the banking system to N900 billion from a huge N2.7 trillion.
It has subsequently recovered N1.9 trillion in currency stored outside the banking system as a result of its Naira note redesign and cash swap strategy.
Godwin Emefiele, Governor of the Central Bank of Nigeria, announced this on Sunday, January 29, 2023, as part of his briefing following a meeting with President Buhari.
Emefiele stated that the recovery initiative had a 75% success rate out of the N2.7 trillion held outside the banking system. “Using the Agen Naira Trade program as well as the CBN Senior Staff nationwide sensitization team activity, Nigerians in rural regions, villages, and the elderly and vulnerable have had the opportunity to swap their old notes,” he said.
The top bank issued new naira notes in denominations of N200, N500, and N1,000 to combat counterfeiting, improve the impact of monetary policy instruments on inflation, and mop up surplus liquidity.
Emefiele said: “Available data at the Central Bank of Nigeria has shown that in 2015, currency in circulation was only N1.4 trillion.”
“As of October 2022, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the banking industry and N2.7 trillion was held permanently in people’s homes.”
“Ordinarily, when the CBN releases currency into circulation, it is meant to be used and after effluxion of time, it returns to the CBN thereby keeping the volume of currency in circulation under the firm control of the CBN.”
“So far and since the commencement of this program, we have collected about N1.9 trillion; leaving us with about N900 billion (N500 billion + N1.9 billion),” he said.
