President Muhammadu Buhari says N2.1 trillion worth of old naira notes have been returned to banks so far.
The president spoke in a televised nationwide address on Thursday.
Buhari said the figure represented 80 percent of cash outside the banking system before the implementation of the naira redesign policy.
He said the huge volume of currency outside banks had proven to be practically unavailable for economic activities, thereby retarding the attainment of potential economic growth.
“Notwithstanding the initial setbacks experienced, the evaluation and feedback mechanism set up has revealed that gains have emerged from the policy initiative,” Buhari said.
“I have been reliably informed that since the commencement of this program, about N2.1 trillion out of the banknotes previously held outside the banking system, had been successfully retrieved. This represents about 80% of such funds”.
With the retrieval of N2.1 trillion, the president said there are expectations that there would be a collapse of illegal economic activities which would help to stem corruption and acquisition of money through illegal ways.
He also said there would be exchange rate stability, availability of easy loans and lowering of interest rates.
“Reduction of broad money supply leading to a deceleration of the velocity of money in the economy which should result in less pressures on domestic prices,” Buhari added.
“Lowering of inflation as a result of the accompanying decline in money supply that will slow the pace of inflation;
“Greater visibility and transparency of our financial actions translating to efficient enforcement of our anti- money laundering legislations.”