Re: Why I gave approval to redesign Naira notes — Buhari

“Redesigning the Naira note is a great initiative” – Adesanya-Davies

Redesigning the Naira note is a great initiative, directing a great energy in right direction. Following a report by Samantha Yusuf in Abuja on November 24, 2022 on “Why I gave approval to redesign Naira notes — by President Buhari”, a frontline female politician activist, university Don and Presidential candidate of Mass Action Joint Alliance (MAJA) in 2019, Prof. Funmilayo Adesanya–Davies in Port Harcourt has joined several well meaning Nigerians who expressed joy over the printing of new notes by Nigerian Security Printing and Minting Plc., congratulating President Muhammadu Buhari and the entire government. “This would be a hall mark of this government’s history”, she added.

“President Muhammadu Buhari, on Wednesday, explained why he gave approval to redesign Naira banknotes and expressed delight that the redesigned currencies are locally produced by the Nigerian Security Printing and Minting (NSPM) Plc.

Buhari, who spoke at the launching of the new banknotes, which preceded the Federal Executive Council (FEC) meeting, gave detailed explanation for his approval to the Central Bank of Nigeria (CBN) to redesign the ₦‎200, ₦‎500 and ₦‎1000 banknotes.

He added that, “the new Naira banknotes have been fortified with security features that make them difficult to counterfeit.

The President also disclosed that the new banknotes would help the CBN design and implement better monetary policy objectives as well as enrich the collective memory of Nigeria’s heritage.

Buhari further commended the CBN Governor, Godwin Emefiele and his Deputies for the initiative and thanked the Managing Director, Executive Directors and Staff of the NSPM “for working tirelessly with the apex bank to make the currency redesign a reality, and for printing the new Naira notes within a comparatively short time.”

Speaking on the international best practice that requires central banks and national authorities to issue new or redesigned currency notes every five to eight years, Buhari noted that it is now almost 20 years since the last major redesign of the country’s local currency was done.

He then said, ‘‘This implies that the Naira is long overdue to wear a new look.

‘‘A cycle of banknote redesign is generally aimed at achieving specific objectives, including but not limited to: improving security of banknotes, mitigating counterfeiting, preserving the collective national heritage, controlling currency in circulation, and reducing the overall cost of currency management.

‘‘As is known, our local laws – specifically the Central Bank of Nigeria Act of 2007 – grants the Central Bank of Nigeria the power to issue and redesign the Naira.

‘‘In line with this power, the Central Bank Governor approached me earlier in this year to seek my permission to embark on a currency redesign project. I considered all the facts and reasons presented before me by the Central Bank.

‘‘There was an urgent need to take control of currency in circulation and to address the hoarding of Naira banknotes outside the banking system, the shortage of clean and fit banknotes in circulation, and the increase in counterfeiting of high-denomination Naira banknotes. It is on this basis that I gave my approval for the redesign of the ₦‎200, ₦‎500 and ₦‎1000 banknotes.

‘‘While this may not be apparent to many Nigerians, only four out of the 54 African countries print their currencies in their countries, and Nigeria is one. Hence, a majority of African countries print their currencies abroad and import them the way we import other goods.

‘‘That is why it is with immense pride that I announce to you that these redesigned currencies are locally produced right here in Nigeria by our Security Printing and Minting Plc.”

In his remarks at the event, the Governor of CBN, Mr Godwin Emefiele, thanked Buhari for his unwavering support for the redesign and distribution of the new notes, which he said will control inflation, make policies more effective, ensure financial inclusion and fight corruption.

Emefiele also noted that by international best practice, the redesign of notes should be every five to eight years, and the currency in circulation had been in usage for 19 years, with spiraling challenges on the economy, especially on security and counterfeiting.

The CBN Governor further appreciated Buhari for his insistence that the initial notes must be designed and produced within the country, further placing confidence in Nigerian Security Printing and Minting.

He said, “Mr. President, only a President of your esteemed and incorruptible stature could have done what we are witnessing today.

Emefiele also listed the benefits of the redesigned naira notes to include enhanced security, greater durability, attractiveness and promotion of rich cultural heritage. And as Nigerian Security Printing and Minting (NSPM) Plc. redesigned Naira notes, Emefiele warns Nigerians, ‘Make huge cash withdrawal, expect action from EFCC.”

In the same vein, “A coalition of political parties and Ethnic Youth Leaders on Friday has assured Nigerians that the latest initiative by the Central Bank of Nigeria (CBN) to redesign highest denominations Naira notes will do more good than harm to the economy.

The conveners of the coalition, Meliga Godwin and the national chairman of Action Alliance, AA, Barr. Kenneth Udeze disclosed this at a press conference in Abuja, urged Nigerians to support the CBN policy as the benefits of this policy outweighs the cost of printing the new notes

A jointly signed statement by the coalition reads partly, “The CBN Governor, Godwin Emefiele, announced at a press briefing in Abuja, that arrangements for the new Naira notes which will begin circulation from December 15, 2022 has been finalized. According to him, the exercise would affect the highest denominations: 200, 500, 1000 notes.

“We support this move by the apex bank because lately counterfeiting of currency has become a common phenomenon, money has become a standardized trade unit and abused by criminals. The CBN has dealt a final blow to smugglers and money laundering companies, who inject counterfeit currency into the financial system.

“This policy will also put more money in the vaults of the banks with which they can use to finance the formal sector for the benefit of the economy. It has also improved chances of a free and fair election as vote buyers have been taken out of the equation while security will be greatly improve.

“In general, the benefits of this policy far outweighs the cost of printing the new notes and we urge the buy in of all Nigerians and call for support for the CBN Governor.”

Adesanya-Davies further advises the government, “The success of this redesigned Naira notes, would be dependent more on the implementation process rather than the redesigning project it self, so the end could justify the means, more grease to your elbow and congratulations.”

Thus, The Central Bank of Nigeria (CBN) will, today, commence the distribution of the New Naira notes to its branches across the country.