The Senate has asked that the Central Bank of Nigeria (CBN) to adjust the deadline earlier fixed for the phasing out of the old N1,000, N500 and N200 notes for transactions across the country from January 31 to June 30, 2023.
They said that the adjustment in date for return and use of old naira notes would allow Nigerians living in remote communities and states with less number of banks to lodge the previous note with ease.
According to the lawmakers, states like Borno and Yobe have less number of banks with a huge populations of businessmen that aim to return the old notes so as to have access to the new currency.
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The lawmakers made the recommendation on Wednesday during a plenary after passing the 2023 budget presented before the house by President Muhammadu Buhari.
The recommendation followed a motion by the senator representing Borno South, Ali Ndume raising the alarm over the January 31 deadline.
The CBN Governor, Godwin Emefiele, had on October 26, 2022 announced the redesign of the three bank notes, saying the new and existing currencies would remain legal tender and circulate together until January 31, 2023.
The apex bank believes the redesigned notes will limit cash in circulation and therefore restrict the deplorable activities of ransom-demanding kidnappers as well as politicians set on rigging the upcoming elections.
President Muhammadu Buhari, in November, unveiled the redesigned naira notes as proposed by the CBN, marking the first time in 19 years since Nigeria’s last currency redesign.
The CBN governor, Godwin Emefiele maintained that there would be a heavy restrictions on the volume of cash that people can withdraw over the counter, as it works with the Economic and Financial Crimes Commission (EFCC) to monitor the purpose of any heavy transactions.
The redesigned currency note he asserts can never be counterfeited, adding that to forestall such occurrence, the CBN will redesign the notes after every five to eight years.
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Last week, the World Bank expressed concern over the economic impact of the recent naira redesign on Nigerian households and businesses.
“At present, households and firms already face elevated financial pressures from prolonged, high inflation, recently compounded by external food and fuel price shocks, and the severe floods, and phasing out existing naira notes over a short time period may add to their challenges,” it stated.
The global financial institution stated that the timing and short transition period of the Nigerian naira redesign may weigh on economic activity.
