Benefits Of Naira Redesign To Nigeria Economy Is Enormous Says Maduagwu

By Julie Sylvia

The Regional Director Central Bank of Nigeria (CBN) Awka, Mr Benedict Maduagwu said that the benefits of the Naira redesign to the Nigerian economy are enormous.

“This policy will help to control inflation as the exercise will bring the hoarded currency into the banking system, thereby making monetary policy more effective.

Mr Maduagwu made this comment at Onitsha Main Market during a sensitization event, to bring Traders up to speed about the death visions of the banks regarding the new notes.

”It will also help with better design and implementation of monetary policy as we would have much more accurate data on money supply and monetary aggregates.

“We believe that this exercise would help in increasing financial inclusion, moving towards a more cashless economy and ensuring greater formalization of Nigeria’s economy.

”It would assist in the fight against corruption as the exercise would rein in the higher denomination used for corruption, and the movement of such funds from the banking system could be tracked easily.

The Central Bank of Nigeria has also described rumours trailing the new naira notes as unreal, revealing that the notes are of international standard.

That there have been rumours of the new notes being weak, dyed and also substandard, which has led to most traders rejecting the notes for the transaction and insisting on the old ones.

He said that these rumours were untrue and also gave reasons for the redesigning of the notes which include defacing, counterfeiting and illegal storage of the old notes outside the banks.

”Onitsha Main Market reported being the largest market in West Africa.

“Statistics show that 84.71 per cent of the currency in circulation are outside the vaults of commercial banks, with only 15.29 per cent in the Central Bank and Commercial Banks vaults.

Second is the worsening shortage of clean and fit bank notes with an attendant negative perception of the CBN and increased risk to financial stability.

Third, there is increasing ease by criminals and risk of counterfeiting, evidenced by several security reports received at the Central Bank of Nigeria.

The Chairman of the Onitsha Main Market, Chief Innocent Ezeoha, Ezennia complained that despite the short deadline, commercial banks are not dispersing the new notes yet to customers.

The State Director of the National Orientation Agency (NOA) Mr Charles Nworji said that the agency is set to move into Communities to sensitize rural people about the new notes.

He affirmed that NOA will spend two weeks on the task to ensure that traders deposit their old notes on or before January 31, which is the deadline.