MAIDUGURI, Nigeria (AA) – Nigeria announced Wednesday that it will redesign the country’s banknotes due to various challenges including hoarding and the increasing risk of counterfeiting.

Speaking at a press conference in the capital Abuja, Central Bank of Nigeria Governor Godwin Emefiele said hoarding of currency notes and counterfeiting negatively affect the financial stability of Africa’s largest economy.

“The increasing ease and risk of counterfeiting evidenced by several security reports and significant hoarding of banknotes by members of the public outside the commercial banks constitute increased risk to financial stability,” he said.

Emefiele said that more than 80% of the currency in circulation in the country is outside the vaults of commercial banks.

He said the bank notes that will be affected include 100, 200, 500 and 1,000 naira notes and circulation would commence from Dec. 15, adding both the newly designed notes as well as existing ones will remain legal tender and the old notes will expire on Jan. 31, 2023.

The central bank said Nigerians will be expected to visit commercial banks to exchange their current notes for the new ones.

The Central Bank of Nigeria is responsible for the management of the nation’s financial and banking activities.

The change in currency notes, the first in over two decades, is a major financial measure for a country fighting to curtail counterfeiting, corruption, banditry and terrorism financing.