An Overview of Central Bank of Nigeria's Recent Cash Re-design and Cashless Economy Agenda

Abstract

Central Bank of Nigeria (CBN) announced on 26 October 2022 the re-design of three out of the eight banknotes in circulation. The move is geared towards entrenching the cashless economy agenda. According to CBN, over 85% of the currency in circulation is kept outside the vaults of commercial banks, and ransom-taking in Nigeria needs to be addressed urgently. This Paper attempts to look at this new policy from the lens of the law, using the doctrinal method of research methodology. The timing, which was very close to the general elections, was wrong, and the three months time frame given to people to swap old notes with new ones was too short. Also, CBN acted in contravention of the Money Laundering Act 2022. The Paper recommends that for the cashless policy to be successful, the e-payment system needs to be upgraded in Nigeria.