The Central Bank of Nigeria (CBN) said there has been steady surge in the currency in circulation within the last seven years and more.
Emefiele disclosed this in a statement personally signed by him on Sunday to announce the extension of the deadline of accepting the old notes and swapping arrangement, indicating that the record with the apex Bank showed that there was only NI.4 trillion in circulation in 2015.
He however revealed that as at 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,(swapping initiative) we have collected about NI.9 trillion; leaving us with about N900 billion (N500b + NI.9 trillion) …” the CBN boss said.
In order to ensure the success of the swap exercise, Emefiele recalled that the CBN has since deployed 30,000 Super Agents nationwide to assist in the hinterlands, rural areas and regions underserved by banks in the country to ensure that the weak and vulnerable ones swap/exchange their old notes.
Emefiele who appealed to all Nigerians to work with the CBN to ensure a hitch free swapping, restated that the CBN had deployed all its staff, particularly the Assistant Directors, Deputy Directors and Directors in Abuja to proceed to all CBN branches Nationwide to join the mass mobilization campaign and monitoring programs, working with the Deposit Money Banks , agents and Branch controllers across the 36 states of the Federation.
“This is meant to ensure compliance with all our guidelines already issued for smooth implementation of the program. Although we have received some reports of breaches by some bank branches, we have agreed with Executive Chairmen of the EFCC and ICPC to assist us, by sending their staff to all CBN and DMB branches nationwide to join in monitoring the implementation of these guidelines. The aim is to ensure compliance with the laid down guidelines”, Emefiele said.
CBN boss claimed that so far, the swap exercise has achieved a success rate of over 75 percent of the N2.7 trillion held outside the banking system, saying “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”.
He added: “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.
Emefiele established that following the initiative, the CBN requested for 10-day extension of the deadline from January 31, 2023, to February 10, 2023; to allow for collection of more old notes legitimately held by Nigerians and achieve more success in cash swap in our rural communities after which all old notes outside the CBN losses their Legal tender Status.
He revealed that the CBN staff were currently on mass mobilization and monitoring together with officials of the EFCC and ICPC will work together to achieve these objectives.
“A 7-day grace period, beginning on February 10 to 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 when the old currency would have lost its Legal tender status” Emefiele stated.
Recall that the CBN had earlier set Tuesday, January 31, 2023 as deadline for accepting three highest denominations – old notes as legal tender in the country.
However, Emefiele announced Sunday morning that he got the approval of President Muhammadu Buhari, after a meeting with him in his home town, Daura, Katsina to extend the deadline.