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HomeTop NewsNew Naira Policy: CBN Gov Emefiele says No one will lose their...

New Naira Policy: CBN Gov Emefiele says No one will lose their money

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By Oludare Mayowa

The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele on Tuesday assured Nigerians that no one will lose their money as a result of its new currency policy as adequate measures have been taken to ensure that old notes are swapped for new banknotes.

He said CBN is statutorily mandated under its enabling Act to accept the old naira notes after the stipulated deadline when it would have lost its legal tender status.

Emefiele, who appeared before the House of Representatives ad hoc committee on the currency redesign and naira swap policy, quoted a provision of the CBN act and noted that the regulator is mandated to accept the old banknotes even after the deadline set by the regulatory bank.

Emefiele said the CBN extended the period of validity of the old naira notes to ensure that people are able to return their money to banks while the CBN will make more disbursements of the new naira notes to the public.

“But I want to make my last comment; subject to the content of section 20 subsection 3. which says even after the old currency has lost its legal tender status; that we are mandated to collect the old money,” Emefiele said.

Section 20 (3) of the CBN act states: “Notwithstanding sub-sections (1) and (2) of this section, the bank shall have power, if directed to do so by the president and after giving reasonable notice in that behalf, to call in any of its notes or coins on payment of the face value thereof and any note or coin with respect to which a notice has been given under this sub-section, shall, on the expiration of the notice, cease to be legal tender, but, subject to section 22 of this act, shall be redeemed by the bank upon demand.”

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“I stand with the House of Representatives on this; what does that mean, while the old note would have lost its legal tender status, in which case we would have to move on but you have your money; that you have not been able to bring to the banks, we certainly going to give the opportunity for you to bring it to the CBN to either pay into your bank accounts or to redeem it.

“You will not lose your money that is the assurance I will give to you. This is not an easy exercise, but then we are happy that in 19 years we are able to carry out this important aspect of our mandate. We are grateful that we are doing this; we want to do it and we seek the support and cooperation of everybody, the support of Nigerians, cooperation of Nigerians.

“At these initial stages, there will be a few hitches, there will be a few glitches, we apologize, but what I’m trying to say is that the overriding interest is the Nigerian economy, to make the Nigerian economy stronger, to make Nigerian better,” the CBN governor told the House of Reps committee on Tuesday.

Global Financial Digest reported on Sunday that the CBN had issued a new deadline for the old naira notes swap as February 10 for customers to take their old naira notes to their banks while the seven days grace to February 17, when people will take their old notes to the CBN branches across the country to swap to the new notes.

However, the House of Reps members were not satisfied with the extension and seek more clarification from the regulatory bank’s governor.

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