When the most sort out for new naira notes were eventually unveiled to the public by President Muhammadu Buhari recently, not a few economic experts expressed hope that the very strong issues that constantly posed challenges to the value of the currency would now be tackled headlong, including a record significant counterfeiting of the higher rates.
The 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; increasing ease and risk of counterfeiting evidenced by several security reports.
Across the world, the act of banknote redesign is mainly aimed at achieving specific objectives focused on improving security of banknotes, mitigating counterfeiting, preserving the collective national heritage, controlling currency in circulation, and reducing the overall cost of currency management. According to the authorities, the new notes are enabled with strong security features.
