Revived policy, implementation challenges, and legal fireworks
The Naira redesign policy of the Central Bank of Nigeria (“CBN”), aimed at driving the objectives of the country’s ongoing migration from a cash-dominated economic environment to an electronic payments market, otherwise known as cashless economy, has passed through different stages of implementation since it was recently reintroduced via a circular to financial institutions on December 6, 2022.
The initial deadline, for which the redesigned N200, N500 and N1000 banknotes (“old notes”) were to cease being legal tender, was extended from January 31, 2023, to February 10, 2023. Prior to this, the CBN had by a circular dated January 20, 2023, launched a cash-swap programme in rural and underserved areas in partnership with Super Agents and Deposit Money Banks (“DMBs”). Under this arrangement, citizens in the areas could exchange the old notes for the new banknotes or their equivalent value in the lower denominations not affected by the redesign policy. The cash swap programme, which became effective on January 23, 2023, was expected to last till the CBN-announced deadline of … Read more
