The launch of the new naira note was announced by the Central Bank of Nigeria on October 26, 2022, in an effort to boost the economy and combat the financing of terrorism and monetary fraud.
All of the characteristics of the new NGN200, NGN500, and NGN1000 banknotes were kept, with the exception of their colors and new security elements that make them harder to counterfeit.
Some Nigerians welcomed the news, but ever since the process began, many have questioned how it was carried out, including the new currency’s quality, the timing, the difficulties in getting access to it, and even the old notes.
POS operators fight daily to get access to cash while conducting their business, therefore they have had their fair share of difficulties. Due to this, some business owners were inadvertently forced to close their doors, while others were compelled to take additional steps to raise money and maintain their operations.
Even though the end does not now appear to be in sight, it is crucial to determine whether Nigerians are truly suffering for nothing or whether it is worth all the trouble.
What impacts would the new currency have on Nigerians?
- Nigerians will adopt the cashless system: The introduction of the new currency has as one of its goals to get Nigerians comfortable with automated and online transactions.
- To ease inflation: In November 2022, Nigerians had one of the greatest inflation rates the nation has ever seen, rising to 21.47%. The typical Nigerian finds the cost of living to be increasingly intolerable. The new exchange rate policy aims to mitigate the effects of the hardship by making the naira stronger versus the dollar and lowering the inflation rate.
- Limitations on withdrawals: The Central Bank of Nigeria (CBN) confirmed that weekly cash withdrawal limits were established at #500,000 for individuals and #5,000,000 for corporate organizations. This is done to promote the use of online banking and control the movement of hard currency.