I saw this news on WhatsApp and I want to confirm if it's true.

*BREAKING NEWS*

The new ‘Strategic Agenda for the Naira’ was announced by the Central Bank of Nigeria, generating a healthy national debate. Before we undertake a nationwide enlightenment program (beginning November 2) to educate the public on the new policy, it is important to clarify some of the issues/questions that are emerging.

Needless to emphasize that to appreciate the full impact of the new policy on the Naira/national economy, we need to take the 4-point agenda as a package. As a package, the new agenda will:

better anchor inflation expectations,
strengthen public confidence in the Naira,
make for easier conversion to other major currencies,
reverse tendency for currency substitution,
eliminate higher denomination notes with lower purchasing power,
reduce the cost of production, distribution, and processing of currency,
promote the usage of coins and thus a more efficient pricing and payments system,
promote the availability of cleaner notes,
deepen the Forex market,
ensure more effective liquidity management and monetary policy,
convertibility of the Naira and hence greater confidence in the national economy and lead to greater inflow of foreign investment
position the Naira to become the ‘Reference currency’ in Africa.
However, most of the questions so far pertain to only one aspect of the agenda, i.e., currency Re-denomination. We have monitored the reactions so far, and note that the concerns/questions raised so far are similar to the ones raised in all the countries that have undertaken re-denomination, including Ghana that is still implementing it now. We clarify some of the concerns as follows:

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐲 𝐫𝐞𝐝𝐞𝐧𝐨𝐦𝐢𝐧𝐚𝐭𝐢𝐨𝐧?
Currency redenomination is the process where a new unit of money replaces the old unit with a certain ratio. It is achieved by removing zeros from a currency or moving some decimal points to the left, with the aim of correcting perceived misalignment in the currency and pricing structure, and enhancing the credibility of the local currency.

𝐇𝐨𝐰 𝐰𝐢𝐥𝐥 𝐭𝐡𝐞 𝐍𝐚𝐢𝐫𝐚 𝐛𝐞 𝐫𝐞𝐝𝐞𝐧𝐨𝐦𝐢𝐧𝐚𝐭𝐞𝐝?

It is by dropping two zeros from the currency or moving two decimal places to the left. The name of the national currency will still be the Naira. However, during the transition period, the existing Naira will be referred to as the “Old Naira”, and the new one to be called the “New Naira”. After the transition period, the word “New” may be dropped. For example, the following equivalents will obtain as we re-denominate:

𝐎𝐥𝐝 𝐍𝐚𝐢𝐫𝐚
(𝐢.𝐞, 𝐄𝐱𝐢𝐬𝐭𝐢𝐧𝐠 𝐍𝐚𝐢𝐫𝐚 𝐚𝐬 𝐚𝐭 𝐭𝐨𝐝𝐚𝐲)
𝐍𝐞𝐰 𝐍𝐚𝐢𝐫𝐚
(𝐚𝐬 𝐟𝐫𝐨𝐦 ,𝐉𝐚𝐧𝐮𝐚𝐫𝐲 𝟐𝟎𝟐𝟒 𝐩𝐨𝐥𝐢𝐜𝐲 𝐰𝐨𝐮𝐥𝐝 𝐛𝐞 𝐟𝐮𝐥𝐥𝐲 𝐢𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐞𝐝 𝐛𝐲 𝐜𝐛𝐧 )

50 kobo Half kobo**
N 1 = 1 kobo coin
N 2 = 2 kobo coin
N 5 = 5 kobo coin
N 10 = 10 kobo coin
N 20 = 20 kobo coin
N 50 = 50 kobo coin or note***
N 100 = N 1 note
N 200 N 2 note**
N 500 = N 5 note
N 1000 = N 10 note
N 2000* = N 20 note

𝐇𝐨𝐰 𝐰𝐢𝐥𝐥 𝐢𝐭 𝐰𝐨𝐫𝐤?
The ‘new Naira’ coins and notes will be different from the existing ones i.e. in design, appearance, security features, etc.
All Naira assets and liabilities (including bank deposits), prices, fees, rents, and contracts (including salaries and wages) will be re-denominated by dropping two zeroes or moving two decimal points to the left.
During the ‘transition period’ prices will be quoted in both the ‘new Naira’ and the ‘Old Naira’ and everyone will choose whether to pay in the new or old Naira. These five months will be allowed so that everyone will get familiar with the conversion, and it will become self-evident to everyone why he/she would prefer to transact in the ‘new Naira’ rather than the ‘old Naira’. For example, if a bag of garri sells for N2,000 (old Naira), the price in ‘new Naira’ will automatically be N20. The customer will choose to pay either N2000 in old Naira or N20 in the ‘new Naira’. In the supermarkets and formal markets, prices will be displayed in both ‘old’ and ‘new’ Naira. In the informal markets where prices are negotiated, the negotiation could be done in the ‘old Naira’ as usual and converted into the ‘new Naira’ if the customer wishes to pay with the ‘new Naira’. This will ensure that prices do not rise due to rounding-up. The five months are also needed for everyone (formal and informal sectors) to become fully familiar with the conversion. It will become obvious to everyone that N50,000 of the ‘old Naira’ has the same purchasing power as N500 of the ‘new Naira’. The question then would be: why carry N50,000 of old Naira when N500 of the new Naira will buy you the same thing? Consequently, if you have N50,000 in your bank account, it will automatically become N500 in the ‘new Naira’ i.e. if you want to withdraw in the ‘new Naira’ or you can still withdraw N50,000 in ‘old Naira’ during the transition period (January 2024). Similarly, someone whose monthly salary is N50,000 can choose (during the transition period) whether to withdraw and spend the N50,000 in ‘old Naira’ or N500 in the ‘new Naira’. Both would buy him/her the same value of goods and services.
Examples of price equivalents in the new and old Naira could be:

𝐇𝐞𝐫𝐞 𝐚𝐫𝐞 𝐭𝐡𝐞 𝐜𝐡𝐚𝐧𝐠𝐞𝐬 𝐭𝐡𝐚𝐭 𝐰𝐨𝐮𝐥𝐝 𝐭𝐚𝐤𝐞 𝐞𝐟𝐟𝐞𝐜𝐭 𝐛𝐲 𝐉𝐚𝐧𝐮𝐚𝐫𝐲 𝟐𝟎𝟐𝟒 𝐀𝐬 𝐩𝐥𝐚𝐧𝐧𝐞𝐝 𝐛𝐲 𝐭𝐡𝐞 𝐀𝐝𝐦𝐢𝐧𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐁𝐨𝐥𝐚 𝐀𝐡𝐦𝐞𝐝 𝐓𝐢𝐧𝐮𝐛𝐮.

House rent (e.g. a flat in some parts of Nigeria) N5000 per month N50 per month
Stock price of a company Assume it is, say:
N20 or N80
20 kobo or 80 kobo
Airline ticket for domestic flight N12,500 = N125
Fuel Price N500 = N5
Exchange rate: N to US$ Assume it is say:
N125
Or N130
Or N100 to US$1.
N1.25 = US$1
Or N1.30 = US$1
Or N1 = US$1

This decision has been taken by the cbn by the directive of President Bola Ahmed Tinubu to reduce the surfering of Nigerians and also slow down inflation. If you have the old Naira start getting ready to switch to the new Naira, this message is meant to prepare Nigeria for the changes ahead. It needs to be shared to ensure everyone is well prepared for the new Naira notes.

Fake news.

Malroux:
Fake news.

Thank you. But what do people gain from fake news?

Newton2024:
Thank you. But what do people gain from fake news?

Nothing. Just causing confusion and heating up the polity.

Ask Ghana the effects... Lmaooo

You only do this after you conquered inflation not before

Malroux:
Nothing. Just causing confusion and heating the polity.

Hmmm, but let's assume it's an authentic news. Will the naira change benefit us?

nonsense policy,figures are not the problem but value is,these guys should stop using us for sport

Lovecars501:

Hmmm, but let's assume it's an authentic news. Will the naira change benefit us?

It won't because you will still gain the same value with the proposed new naira.

I had a dream.

I saw myself wheeling a barrow full of notes, Naira notes to be precise.

I rolled and pushed the barrow load until I got to a storefront.

Boldly crested on the storefront were the inscriptions "Pateke bakery and confectionary stores".

I walked into the store while leaving the barrow load outside where some workers were busy offloading and weighing the contents of the barrow.

When I woke up, I found myself holding a loaf of bread and without the barrow load of nairas.

I've been wondering what kind of a dream this was.

Any interpreter in the house?

Abi I don use wheelbarrow load of naira go buyoaf of bread?

Mucheche...

BetNaija politicians. Kalo kalo

This will serve as the final nail on the coffin.

The only hope herein is that they won't even push it because none of the thieves would want to see their looted worth depreciated by 2 zeros not even the President.

So if youe salary is 100,000 you will be paid 100 naira so how does this affect the buying power of the money?

APC is too dull abeg

mrvitalis:
Ask Ghana the effects... Lmaooo

You only do this after you conquered inflation not before

Arm chair economists at it again.

lotkyes200:
So if youe salary is 100,000 you will be paid 100 naira so how does this affect the buying power of the money?

APC is too dull abeg

If u are so Smart, APC that's too duII won't be ruling you.

Redenomination was considered in 2007 or 2008, but it was resisted and was not implemented.
Controlling inflation and preventing devaluation is more important than redenomination.

Reintroducing coins is as good as eliminating the affected currency unit(s).
Generally, it appears as if Nigerians do not like using coins.
In addition, the Central Bank has a habit of producing and releasing only the first batch of coins. Afterwards, coin production and release stops, and eventually the coins fade out from circulation, thereby removing that currency unit.

Instead of reintroducing coins, the polymer notes should continue.

panpan:
Redenomination was considered in 2007 or 2008, but it was resisted and was not implemented.
Controlling inflation and preventing devaluation is more important than redenomination.

Reintroducing coins is as good as eliminating the affected currency unit(s).
Generally, it appears as if Nigerians do not like using coins.
In addition, the Central Bank has a habit of producing and releasing only the first batch of coins. Afterwards, coin production and release stops, and eventually the coins fade out from circulation, thereby removing that currency unit.

Instead of reintroducing coins, the polymer notes should continue.

It's not as if Nigerians do not like using coins but the uselessness and valueless of coins is the problem. Only redomination can made coins have value.

Let me state categorically here that this is nothing but recolonization of our country Nigeria. The policy is stupid in its entirety and ramifications. It's tends to surrender our collective wealth and sovereignty to one country that wants its currency to be the single world currency.
When you made #100 to become #1 while the purchasing power of that redenominated #1 has not changed and yet $1 will still be exchanged with your new Naira as #10 which is still equal to #1,000 old Naira.
No No No to this stupid policy that has failed in other countries like Ghana whose currency has been plummeting to its lowest ever.