N1.9 trillion worth of naira notes have reportedly been returned by hoarders, according to Godwin Emefiele, governor of the Central Bank of Nigeria (CBN).
The Naira had to be redesigned, according to the central bank, in order to get the N2.7 trillion that was being kept outside of the banking system, which it said forced it to file a grievance.
According to CBN, redesigning the Naira will further deter counterfeiting and prevent the financial regulator from overspending on new printing.
However, Emefiele claimed in a statement on Sunday that people who had been hoarding local currency had given it back to the banks because of the deadline and redesign of the Naira.
“Available data at the Central Bank of Nigeria has shown that in 2015, Currency in Circulation was only N1.4 trillion. As of October 2022, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the Banking Industry and N2.7 trillion held permanently in people’s homes.
“Ordinarily, when CBN releases currency into circulation, it is meant to be used and after effluxion of time, it returns to the CBN, thereby keeping the volume of currency in circulation under the firm control of the CBN.
“So far and since the commencement of this program, we have collected about N1.9 trillion; leaving us with about N900 billion,” Emefiele said.
The apex bank boss added, “We are happy that so far, the exercise has achieved a success rate of over 75 percent of the N2.7 trillion held outside the banking system. Nigerians in the rural areas, villages, the aged and vulnerable have had the opportunity to swap their old notes; leveraging the Agent Naira Swap initiative as well as the CBN Senior staff nationwide sensitization team exercise.
“Aside from those holding illicit/stolen Naira in their homes for speculative purposes, we do aim to give all Nigerians that have Naira legitimately earned and trapped the opportunity to deposit their legitimately trapped monies at the CBN for exchange.”