President Muhammadu Buhari has approved an extension of the ongoing currency swap program in Nigeria, moving the deadline from January 31 to February 10, 2023.
The extension was announced by the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, who stated that the additional time will allow for more Nigerians to successfully change their currencies to the redesigned notes, particularly those in rural areas who may be underserved by banks.
According to Emefiele, the currency swap program has achieved more than a 75% success rate of the N2.7 trillion held outside the banking system, resulting in a drop in the rate of inflation, more stability in foreign exchange rates, and a noticeable impact on security, particularly in the areas of banditry and kidnapping.
He credited the success of the program to President Buhari’s leadership, stating that “only an incorruptible leader of the President’s stature can give such approval to the CBN.”
The CBN Governor also noted that redesigns of currency are typically done every five to eight years, and that the main aim of the program is to make Monetary Policy Decisions more efficacious.
He stated that data shows that currency in circulation in 2015 was N1.4 trillion, while as of October 2022, currency in circulation had risen to N3.23 trillion, with only N500 billion being within the banking industry. The remaining N2.7 trillion was held permanently in people’s homes.
To achieve effective distribution of the new currency, the CBN has taken several steps, including holding meetings with Deposit Money Banks and providing them with Guidance Notes on processes for the collection of old notes and distribution of new notes, as well as directing that new notes should be loaded in ATMs nationwide for an equitable and transparent mechanism.
The CBN also worked with the media, print and broadcast, and the National Orientation Agency for citizen sensitization, and deployed 30,000 Super Agents nationwide, particularly in rural areas, regions underserved by banks, and to reach the weak and vulnerable for currency swap.
To ensure compliance, staff members were sent to all CBN branches nationwide to join the mass mobilization campaign and monitoring programs, and breaches of the program have been reported to the EFCC and ICPC for further action.
Emefiele also explained that in addition to the ten-day extension, a seven-day grace period has been given by the President, beginning on February 10 and ending on February 17, 2023, in compliance with Sections 20 (3) and 22 of the CBN Act, allowing Nigerians to deposit their old notes at the CBN after the February deadline.
He added that the excuse of security threats pushed by the Kano State Governor, Abdullahi Ganduje, had no bearing on the swap, which had achieved compliance and recorded huge success across the country.
In summary, President Buhari has granted an extension to the ongoing currency swap program in Nigeria, moving the deadline from January 31 to February 10, 2023, in order to allow more Nigerians to successfully change their currencies to the redesigned notes and reduce the risk of loss, particularly among those in rural areas.
The program has reportedly achieved more than a 75% success rate, resulting in a drop in inflation, more stability in foreign exchange rates, and a noticeable impact on security.
The CBN has taken several steps to ensure effective distribution of the new currency, including working with the media, deploying Super Agents nationwide, and monitoring compliance.
A seven-day grace period will also be given after the February deadline for Nigerians to deposit their old notes at the CBN.
