Onitsha Market traders have reportedly protested the sale of the new naira notes by individuals suspected to be agents of commerical banks in the area.
According to Tribune, the traders filed the complaint to the Anambra State Branch Controller of the Central Bank of Nigeria, Benedict Maduagwu, during the CBN Sensitization of Stakeholders on the Currency Redesign in Anambra on Thursday at market leaders’ office hall, Onitsha, Main Market.
As a result, the Chairman of Onitsha Main Market, Innocent Ezeoha, pleaded with the CBN to visit the market and exchange the new currency notes for the traders.
The CBN branch controller, Mr Madugwu, responded by saying the apex bank will now conduct surveillance on the commercial banks in the area over the development, warning the banks that all money allotted to them had security codes.
He reiterated that the CBN would penalize commercial banks that hoarded fresh naira notes.
Madugwu’s address read in part, “In recent times, however, currency management in Nigeria has faced several Challenges that have continued to grow in scale and sophistication with unintended consequences for the integrity of both the CBN and the country.
“Some of these challenges primarily include: First, a significant hoarding of banknotes by members of the public, with Statistics showing that 82.72 trillion out of the 3.26 trillion currency in circulation as of June 2022 was outside the vaults of commercial banks across the country, and supposedly held by members of the public.
“This statistic shows 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
“Second, is the worsening shortage of clean and fit banknotes with the 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 benefits of the currency redesign to the Nigerian economy are enormous given that: 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.
“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 the Nigerian economy.
“The new design and current series are to circulate side by side until January 31, 2023, when the current series ceases to be legal tender. We advise members of the public to ensure that they deposit cash holdings in these denominations at their commercial banks.”
