CBN to Phase out Lower Denomination Naira Notes, Says They are Worthless


Alt: = "5, 10, 20, and 50 naira notes"

Central Bank of Nigeria, CBN says it will soon phase out the circulation of the lower denominations of the naira, because they are becoming worthless.

Aminu Bizi, CBN consultant on eNaira who disclosed this on Friday during an eNaira sensitisation exercise in Asaba, the Delta State Capital, said that  N5, N10, and N20 notes are the denominations to be phased out, stressing that they have been weakened by the declining purchasing power of the naira.

“So very soon, you may not be seeing N5, N10 or N20 notes in circulation because CBN is using money to print these notes, and at the end of the day this N5, N10, N20 will be abused,” Mr Bizi said.

He further disclosed that the apex bank was losing money replacing mutilated notes abused by market women and traders, and other members of the public.

Advocating for adoption of eNaira, Mr Bizi hinted that the e-naira platform will be made available for transactions as low as N50.

“You have your e-NAIRA, before you even get down, you scan the Keke scanner bar code and you pay him his fare of N50 or N100. So why should you go and queue to withdraw money? Is it not for you to spend? So if these market people accept e-NAIRA, people don’t need to cash,” he asked.

The CBN stated this as part of its e-naira initiative, which aims at promoting financial inclusion and a cashless economy.

Read also: eNaira New Feature Support Payments for DSTV, Airtime, Air Ticket, others – CBN

Mr Bizi said that traders in onions, sachet water, pepper, and other commodities would be taught how to utilise the e-naira account to conduct transactions at a sensitisation exercise held on Friday at Asaba’s famed Ogbogonogo Market.

CBN during a sensitisation exercise in Oshodi Lagos State on May 6 said that updated eNaira App has features that enable payments for airtime, paid TV, flight ticket, and other bills.

With smaller denominations constantly losing their value due to the naira’s diminishing purchasing power, the CBN claims it is wasting  money by issuing the notes, which are then abused by the citizens.

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