The Central Bank of Nigeria (CBN) has reiterated that all naira banknotes currently in circulation will continue to remain legal tender indefinitely.
In a press release, signed by its Ag. Director, Corporate Communications, Mrs. Hakama Sidi Ali, the apex bank advised members of the public to disregard reports that the old naira notes will cease to be legal tender on December 31, 2024.
The statement partly read: “The attention of the Central Bank of Nigeria (CBN) has been drawn to discussions at different fora suggesting that the old series of the N200, N500, and N1,000 banknotes shall cease to be legal tender on December 31, 2024.
“We wish to state categorically that such claims are false and calculated to disrupt the country’s payment system. For the avoidance of doubt, the order of the Supreme Court of Nigeria on Wednesday, November 29, 2023, granting the prayer of the Attorney-General of the Federation and Minister of Justice to extend the use of old Naira banknotes ad infinitum, subsists.
“Similarly, the CBN’s directive to all its branches to continue to issue and accept all denominations of Nigerian banknotes, old and re-designed, to and from deposit money banks (DMBs) remains in force.”
According to the statement, the Supreme Court’s order that the old series of N200, N500, and N1,000 banknotes should continue to be legal tender alongside the redesigned versions, means that all banknotes issued by the CBN, “will continue to remain legal tender indefinitely.”
The apex bank advised members of the public to disregard suggestions that the said series of banknotes will cease to be legal tender on December 31, 2024.
“We urge Nigerians to continue to accept all Naira banknotes (old or redesigned) for their day-to-day transactions and handle them with the utmost care to safeguard and protect their lifecycle.
“Furthermore, the general public is encouraged to embrace alternative modes of payment, echannels, in order to reduce pressure on the use of physical cash,” it stated.
The House of Representatives, on Thursday, had urged the CBN to issue more of new N200, N500, and N1,000 notes and begin the gradual withdrawal of the old notes from circulation before December 31, 2024.
The advice was given after the adoption of a motion of urgent national importance sponsored by Victor Ogene (LP, Anambra).
In adopting the motion, the House also tasked apex bank to order commercial banks to forthwith stop cash payments to their customers with old N200, N500, and N1,000 notes but instead engage in gradual mopping up of the old notes.
While presenting the motion, Ogene recalled ,“The hardship, frustration, controversy, and chaotic situation occasioned by the CBN change of currency in 2023 that affected the validity of the old N200, N500, and N1,000 notes at the time that resulted in litigation”.
He said: “The House also recalls the current scarcity that led to untold hardship in the nation as a result of the CBN’s inability to supply new versions of the changed currency notes.
“The House is aware that, going by the Supreme Court’s subsequent ruling and order, the N200, N500, and N1,000 notes shall cease to be legal tender, medium of exchange for goods and services in Nigeria, and shall also cease to be in circulation as from January 1, 2025.
“The House is concerned that the Central Bank of Nigeria (CBN) has not shown any sign of sensitisation or kicked off any awareness program to remind Nigerians about this important economic policy in order to make them prepare for the deadline of 31/12/2024.
“The House is worried that Nigerians will be plunged into more chaotic situations than what happened in February 2023, when the old N200, N500, and N1,000 notes shall cease to be legal tender and medium of exchange for goods and services as of January 1, 2025.
“The House is disturbed that the CBN ought to have started public awareness, such as jingles, television and radio announcements, social media postings, flyers, daily newspapers, and periodic magazine publications, three months before the deadline, but now with about two months to the deadline, yet nothing to show that the apex bank is prepared for the exercise.
“The House is further worried that the CBN is still comfortably releasing the old N200, N500, and N1,000 notes mixed with the new N200, N500, and N1,000 notes for business transactions in Nigeria, instead of the gradual mopping up of the old notes from circulation or ordering commercial banks to do so by issuing out only the new notes.”
While passing the motion, the House mandated its Committee on Banking Regulations to ensure compliance and report back within three weeks.
