With The eNaira Application Facing Difficulties, Nigeria Switches To Issuing New Banknotes

Godwin Emefiele, governor of the Central Bank of Nigeria (CBN), has said that his organization would begin issuing freshly designed naira banknotes on December 15.

Emefiele stated that the introduction of the new notes into Nigeria’s financial system is meant to assist the CBN in combating fraud, inflation, and insecurity.

The impacted currencies include 100, 200, 500, and 1,000-naira banknotes, according to Emefiele, who revealed at a recent news conference. The CBN governor justified the decision to redesign the banknotes by stating that it is a worldwide best practice that must be followed every five to eight years.

According to Emefiele, Nigeria has not altered its banknotes in the last 20 years. He stated:

“On the basis of these trends, problems, and facts, and in line with Sections 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 N100, N200, N500, and N1,000 levels.”

As CoinCu report, fewer than 0.5% of the Nigerian population is using eNaira. In the aftermath of the depreciation of the weakening economy and local currency, most locals have resorted to cryptocurrencies as a hedge against inflation. However, they see the eNaira as a proxy for the country’s economic difficulties.

According to some Nigerian analysts, after the failure of CBDC adoption, the central bank may be exploiting the currency redesign to justify its assault on cash hoarders and foreign currency merchants.

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Harold

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