The Central Bank of Nigeria’s (CBN) proposal to redesign the naira has received advice from the World Bank that its short transition period will hurt the economy of the nation, especially the poor.
In its most recent Nigeria Development Update, NDU, report titled “Nigeria Choice,” the bank made this claim.
Recall that the freshly redesigned N200, N500, and N1000 have started to circulate thanks to the CBN.
The World Bank responded to the policy by revealing that quick demonetisations result in immediate losses for small enterprises, disadvantaged households, and particularly Nigerians who significantly rely on daily cash transactions.
Inflation, floods, spikes in fuel prices, and the impending phase-out of outdated naira notes, it was stated, are all causing many homes and businesses to experience financial challenges.
“While periodic currency redesigns are normal internationally, the naira does appear to be due for it since naira notes have not been redesigned for two decades. However, the timing of and short transition period for this demonetisation may have negative impacts on economic activity, particularly for the poorest households,” it stated.
Meanwhile, the Central Bank of Nigeria, CBN, on Tuesday disclosed information about the location of the security measures in the new naira notes in an effort to prevent Nigerians from becoming victims of counterfeiters.
The documents below, which the CBN has made public, highlight the specifics and placement of the security elements.
