The Central Bank of Nigeria’s plan to begin circulating newly redesigned N200, N500, and N1000 notes on December 15, 2022 has elicited mixed reactions.
Governor Godwin Emefiele, who announced the plan, provided numerous justifications for his decision. Some of the reasons include reducing inflation, discouraging naira hoarding, and making it more difficult for terrorists and kidnappers to collect/spend ransom. He also stated that the naira’s redesign was long overdue.
It should be noted that this policy shift comes at a time when the naira has lost a significant portion of its value. According to a recent Naijaonpoint analysis, the currency has fallen by 33.7% since the central bank banned dollar sales to bureau de change (BDC) operators in 2021.
Experts’ reactions to the proposed new naira notes
Mr Tajudeen Olayinka, the Chief Executive Officer of Wyoming Capital and Partners, said that the monetary authorities just want to use the initiative to push the old naira out of the system to increase people’s interest in the e-Naira. He said:
- “It is a way to boost the e-Naira, it is a way of taking quantum money out of circulation to encourage people to embrace the e-Naira and help curb inflation indirectly. It will not fight inflation, but it can achieve some points.”
Mr David Adonri, the Executive Vice Chairman of Hicap Securities Limited, said the move was unnecessary as it cannot fix the issues bedevilling the economy.
He said:
- “It is a motion without movement. The implication is that printing the new currency in a society already laden with heavy debt will cost more money. It is like they have run out of ideas for fighting inflation and stabilizing the economy. Redesigning N200, N500, and N1000 naira notes is simply cosmetics to the solution on the ground; they should find a better way to bring the economy to a stable position.”
Also, reacting to the development is Mr Boniface Okezie, the National Coordinator of Progressive Shareholders Association. He said:
- “Governor Godwin Emefiele has lost ideas for economic revival. He is now a confused man. Redesigning N200, N500, and N1000 naira notes will not stop the naira from losing value; it no longer has value. He should look for better ideas. He should find other ways to salvage the naira and make it return to its glory. Redesigning the naira has no economic bearing; that will not bring down inflation. Naira is on a free fall, they should rather come up with better solutions than this cosmetic approach”
Omoyele Sowore, the African Action Congress presidential candidate, demanded that the governor of the Nigerian Central Bank be removed immediately because of this new policy direction.
Reacting on Twitter, Sowore said:
- “Central Bank of Nigeria to redesign banknotes N200, N500 and N1000 notes instead of boosting the value of the Naira. Jokers! It is time to fire the CBN Governor, Emefiele. #WeCantContinueLikeThis.”
