Old naira notes remain valid – CBN
The House of Reps have asked The Central Bank of Nigeria to discontinue the circulation of old notes. The Central Bank has also replied that it has no intention to stop the circulation of the old N200, N500 and N1,000 banknotes by December 31, 2024.
The Supreme Court, in support of The Central Bank, ordered that the old notes remain legal tender. Accordingly, all banknotes issued by the CBN will continue to remain legal tender indefinitely, the statement emphasized.
Mrs. Sidi-Ali Hakama, the acting Director of the CBN’s Corporate Communications Department, said, “We, therefore, advise 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, e-channels, in order to reduce pressure on the use of physical cash.”
The CBN announced, on November 14, 2023, the extension of the legal tender status of the old denominations beyond the December 31, 2023 deadline. It also didn’t state a new deadline.
The apex bank reiterated that, “All banknotes issued by the Central Bank of Nigeria (CBN), in accordance with Section 20(5) of the CBN Act 2007, will continue to remain legal tender, ad infinitum, even beyond the initial December 31, 2023 deadline.
The Central Bank of Nigeria is working with the relevant authorities to vacate the subsisting court ruling on the same subject. CBN branches across the country will continue to issue and accept all denominations of Nigerian banknotes, old and redesigned, to and from deposit money banks (DMBS)”.
“The general public is enjoined to continue to accept all Naira banknotes (old or redesigned) for day-to-day transactions and handle these banknotes with utmost care, to safeguard and protect the lifecycle of the banknotes.
Also, the general public is encouraged to embrace alternative modes of payment, e-channels, for day-to-day transactions,” the statement stated.
Hon. Afam Ogene, a member of the National House of Representatives, mentioned the unpalatable situation that ensued when the CBN changed the currency in 2023. And how this led to litigations.
He also pointed out how the scarcity of the new notes caused hardship for the citizens. Going further to express his concern that the CBN has not commenced any sensitization to prepare Nigerians for the December 31, 2024 deadline.
He worried that Nigerians would suffer a repeat of the February, 2023 incident when the old N200, N500 and N1,000 notes ceased to be legal tender.
Ogene stipulated that the CBN should have started public awareness: jingles, television and radio announcements, social media postings, flyers, daily newspapers and periodic magazines publications.
He complained that with less than three months to the deadline, the apex bank is unprepared for this critical exercise. Instead, the CBN is still circulating the old N200, N500 and N1,000 notes alongside the new N200, N500 and N1,000 notes.
The House concluded with this directive: “Central Bank of Nigeria (CBN) to issue more new N200, N500 and N1,000 notes and begin the gradual withdrawal of the old notes from circulation before the deadline of December 31, 2024.
Urge the Central Bank of Nigeria (CBN) to order commercial banks to forthwith stop cash payment to their customers with old N200, N500 and N1,000 notes but instead, engage in gradual mopping up of the old notes.
Urge the Central Bank of Nigeria (CBN) to kick-start awareness programmes for Nigerians to be aware and prepare for the deadline of December 31, 2024.”
The House instructed its Committee on Banking Regulations to facilitate compliance and report back to the House within 21 days.
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