The Central Bank of Nigeria (CBN) will soon phase out lower denominations of naira notes, including N5, N10, and N20. This is according to the Asaba, Delta chapter of the apex bank.
Speaking at the popular Ogbogonogo market, Delta State Branch Controller of CBN, Godwin Okafor enjoined members of the public, particularly traders to key into the central bank’s e-Naira policy.
While noting that the said lower denominations have almost become worthless owing to the declining purchasing power of the naira, CBN said it was wasting money printing the notes which end up being abused by members of the public.
The consultant of CBN on e-Naira, Dr. Aminu Bizi, said Delta was chosen as the second state to sensitise market women on e-Naira after Lagos.
“We are here to sensitise market men and women, shop to shop on the use of e-Naira. CBN has gone behind ATM, POS, therefore, we are going to meet the Okada/tricycle union on this policy.
“Paper currency will soon be out of circulation because CBN spent money to print money and people abuse the currency in the market, spraying at the occasion, payment of Okada/tricycle and others and CBN is losing,” he explained.
When asked about the safety of using e-Naira, Bizi guarantees that “no yahoo can penetrate your e-NAIRA to take your money. Even if someone forces you to collect your pin number or password, he can be traced because you cannot move e-NAIRA to another bank account.
“I have e-NAIRA, I cannot move funds to your bank account but I can take money from my bank account to my e-NAIRA, and I can take back my money in e-wallet to my bank account. So no chance for fraud. It is free, all marketers are free to accept e-naira.”
Are lower denominations indeed going to extinction?
Owing to unstable inflation and naira devaluation, lower denominations of Nigeria’s currency have not only lost value but are also heading for extinction. According to financial pundits, the cause of loss of value for the notes, amongst other things, is the unofficial phase-off of coins.
Consequently, Nigerians are now left with no option but to pay more for commodities that could be bought with the amounts.