CBN Affirms Old Naira Notes Will Remain In Use Indefinitely

The Central Bank of Nigeria (CBN) has stated that it has no intention of discontinuing the circulation of the old series of N200, N500, and N1,000 banknotes by December 31, 2024.

The apex bank’s clarification came on a day when the House of Representatives urged it to increase the issuance of newer N200, N500, and N1,000 denominations and begin the phase-out of old notes from circulation before the December 31, 2024 deadline for their demise.

The House also requested the apex bank to direct commercial banks to immediately suspend cash payments to consumers using old N200, N500, and N1,000 notes, as well as to gradually phase out the old notes.

The lower chamber’s resolution, proposed in plenary by Hon. Afam Ogene, came after the passage of a motion of urgent national importance urging the CBN to educate Nigerians about the non-legal tender status of old naira notes beginning January 1, 2025.

However, in a statement issued last night, October 24, by its interim Director, Corporate Communications Department, Mrs. Sidi-Ali, Hakama, the CBN stated that such assertions by the House are “false and calculated to disrupt the country’s payment system”.

For the avoidance of doubt, the CBN reaffirmed that the Supreme Court’s order of Wednesday, November 29, 2023, which allowed the Attorney-General of the Federation and Minister of Justice’s request to extend the use of old Naira banknotes indefinitely, remains in effect.

Similarly, the CBN’s mandate to all its branches to continue issuing and accepting all denominations of Nigerian banknotes, old and redesigned, to and from deposit money banks (DMBs) remains in effect.

Hakama also stated that the central bank’s previous directive to all of its branches to continue issuing and accepting all denominations of Nigerian banknotes, old and redesigned, to and from deposit money banks (DMBs) remained in effect.

The Supreme Court ordered that the old series of N200, N500, and N1,000 banknotes will continue to be legal money alongside the new counterparts. As a result, all CBN-issued banknotes would remain legal currency indefinitely, the statement noted.

“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.”

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli