CBN announces naira redesign

On October 26, 2022, Central Bank of Nigeria (CBN) Governor Godwin Emefiele announced plans to redesign the N200, N500, and N1,000 banknotes, with new notes to be released by December 15, 2022. The CBN set January 31, 2023 as the deadline for Nigerians to exchange old notes for new ones at commercial banks. This marked the first major currency redesign since 2007, affecting the three highest denomination notes in circulation.

The CBN cited several reasons for the redesign, including the need to control money supply, combat counterfeiting, and address the large volume of banknotes held outside the banking system. Officials estimated that over 80% of currency in circulation was held outside banks, limiting the effectiveness of monetary policy. The policy was also presented as a tool to curb kidnapping, ransom payments, and other crimes that relied heavily on cash transactions using high-denomination notes.