Regulators said January 31 is the last date for the old documents to be used or stored in banks.
Nigeria has introduced a new monetary policy, which the West African country’s central bank says will help curb inflation and money laundering.
However, experts doubt whether this will happen in a country that has been fighting chronic corruption for many years, where public officials are known to embezzle public funds that are causing many problems for many people suffering from poverty.
Launched on Wednesday, the new denominations of 200 ($0.46), 500 ($1.15) and 1,000 naira ($2.30) are the first time Nigeria’s currency has been changed in 19 years. The banknotes will go on sale by mid-December.
The naira is “already overdue for an appearance,” Nigeria’s President Muhammadu Buhari said at the launch. The new notes, which were developed in Nigeria and have a fixed security, will “help the central bank to formulate and implement sound financial objectives”.
More than 80 percent of Nigeria’s 3.2 trillion naira ($7.2bn) is outside commercial banks and in private hands, said Godwin Emefiele, governor of the Central Bank of Nigeria.
With inflation at a 17-year high of 21.09 percent driven by rising food prices, he said the new notes would “bring savings back to the bank” and help the central bank rein in spending. the world.
Regulators last month announced a deadline of January 31 for old documents to be used or stored at banks.
“Money reform will also help in the fight against corruption because the project will control the top groups used for corruption and the movement of such money from banks can be tracked easily,” said Emefiele.
However, analysts say the new currency will have little or no effect in controlling inflation or fighting corruption if there are no institutional reforms.
“If you want to reduce money theft, your financial system must be good; if you want to stop the payment of ransom, the security must be good; if you want to reduce inflation, the rate at which the total income is growing in the economy should decrease – so it is not related to money,” said Adedayo Bakare, an analyst at Money Africa in Lagos.
The newly formed churches will also lead to economic inclusion and economic growth, the central bank official said.
But Mr Bakare said the move by Nigeria’s central bank was a “cheap scheme that would harm many people because of the short time” needed to spend or deposit money.
About 133 million people, or 63 percent of Nigeria’s citizens, are extremely poor, according to government statistics.
“It can slow down the economy if people don’t have money and people can’t exchange their money for new notes quickly,” he said. “You can’t withdraw money without processing money or paying electronically even then.”