The Central Bank of Nigeria (CBN) said it will redesign the N200, N500, and N1,000 notes, respectively.
CBN Governor, Godwin Emefiele, disclosed this on Wednesday during a special press briefing in Abuja.
He advised Nigerians to take old notes to banks to enable them withdraw the new banknotes once circulation begins.
Speaking on the motivation for the change, the CBN governor explained that the decision was reached due to persisting concerns with the management of the current series of banknotes, and currency in circulation — particularly those outside the banking system in Nigeria.
He said in recent times, currency management has faced several daunting challenges that have continued to grow in scale and sophistication with attendant and unintended consequences for the integrity of both the CBN and the country.
According to Emefiele, these challenges primarily include: significant hoarding of banknotes by members of the public, with statistics showing that over 80 percent of currency in circulation are outside the vaults of commercial banks; worsening shortage of clean and fit banknotes with attendant negative perception of the CBN and increased risk to financial stability; and increasing ease and risk of counterfeiting evidenced by several security reports.
He added that recent development in photographic technology and advancements in printing devices have made counterfeiting relatively easier.