The Central Bank of Nigeria (CBN) has moved to dispel widespread rumors suggesting that the old N200, N500, and N1,000 banknotes would cease to be legal tender by December 31, 2024. In a recent statement issued, the apex bank categorically denied these claims, emphasizing that the Supreme Court’s order extending the use of the old notes remains in effect.
The CBN’s clarification stems from the ongoing divergent social media misinterpretations and speculations of the validity of the affected naira denominations as the deadline approached.
“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.
CBN Upholds Supreme Court Judgement
The statement by the acting Director of Corporate Communications, Sidi Hakama, the CBN noted that the on November 29, 2023, the Supreme Court issued a landmark ruling, ordering an indefinite extension of the use of the old banknotes. This decision effectively nullified the CBN’s initial deadline and paved the way for their continued circulation.
“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.
The CBN consequently on November 14, 2023, the CBN announced the extension of the legal tender status of the old N200, N500, and N1, 000 denominations beyond the December 31, 2023 deadline – and with no definite time frame for their retirement.
“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.”
CBN Reassures Public
In light of the persistent misinformation, the CBN has assured the public that all denominations of Nigerian banknotes, both old and redesigned, will remain legal tender. The central bank has also urged Nigerians to continue using these banknotes for their daily transactions, while also encouraging the adoption of electronic payment channels to reduce reliance on physical cash.
“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 emphasised that such reports are false and intended to disrupt the nation’s payment system.”
Background to the Naira Redesign Policy
The CBN introduced the naira redesign policy in October 2022, aimed at combating inflation, reducing counterfeiting, and promoting a cashless economy. However, the policy faced significant challenges, including widespread scarcity of new banknotes and public outcry over the inconvenience caused.
The Supreme Court’s intervention and subsequent extension of the old banknotes’ validity period have added another layer of complexity to the situation. The central bank’s latest clarification is intended to provide much-needed clarity and stability to the nation’s financial system.
