From Obinna Odogwu, Awka
Traders in Onitsha, the commercial nerve centre of Anambra State, have alleged that the newly redesigned naira notes which commercial banks in the area said were not available are already being sold in markets across the state by money merchants. The traders, who wondered how the money vendors obtained the quantity for sale to willing buyers, alleged that banks in the metropolis didn’t issue them the new notes despite efforts to get same for their daily business transactions.
The businessmen made the allegation on Thursday when officials of the Central Bank of Nigeria (CBN) stormed the market to sensitise them about the new notes; and to encourage them to accept it from customers.
Branch Comptroller of the apex bank in Awka, the state capital, Mr Benedict Maduagwu, told the traders that the CBN would investigate the allegations and if found to be true, would sanction banks that released the notes for illegal sale.
Going forward, he encouraged the traders to deposit their old N200, N500 and N1000 denominations to their respective commercial banks before the January 31st deadline.
Maduagwu, while also encouraging the traders to accept the redesigned notes from their customers, told them that the new notes have enhanced security and that they are more durable and attractive.
“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 currency redesign 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.
“Although the global best practice is for central banks to redesign, produce and circulate new local legal tender every 5—8 years, the Naira had not been redesigned in almost 19 years.
“On the basis of these trends, problems, facts and benefits of currency redesign, and in line with Section 2(b) Section 18 and Section 19, Subsections (a) and (b) of the CBN Act 2007, the Management of the CBN sought and obtained the approval of President Muhammadu Buhari to redesign, produce, and circulate new series of banknotes at 200, 500 and 1,000 levels”, he said.
Chairman of Onitsha Main Market, Chief Innocent Ezeoha, promised to take the CBN’s message to the traders. He, however, asked the apex bank to reach out to the commercial banks and ensure they make the new notes available to them.