The Central Bank of Nigeria has announced that there is no deadline on the circulation of old N200, N500 and N1000 bank notes.
The spokesperson of CBN, Sidi Ali Hakama disclosed this in a statement on Thursday.
This comes amid speculations that the old Naira notes will cease to be legal tender from December 31, 2024.
However, the apex bank clarified that the claim is false.
CBN stressed that all bank notes remain legal tender. “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.
“It will be recalled that the Supreme Court ordered that the old series of N200, N500, and N1,000 banknotes shall continue to be legal tender alongside the redesigned versions.
“Accordingly, all banknotes issued by the Central Bank of Nigeria (CBN) will continue to remain legal tender indefinitely.
“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, echannels, in order to reduce pressure on the use of physical cash,” the CBN said.
Recall that the house of representatives earlier on Thursday said that the deadline for old naira notes to cease being legal tender is December 31, 2024.
During plenary on Thursday, the lower legislative chamber asked the Central Bank of Nigeria (CBN) to sensitise Nigerians on the deadline, and to order commercial banks to stop payment of old N200, N500 and N1,000 notes to customers.
The green chamber passed the resolution during plenary, following the adoption of a motion sponsored by Afam Ogene, a member of the Labour Party from Anambra state.
The resolution of the house contradicts the judgment of the supreme court and the position of the CBN.
BACKGROUND
In October 2022, the CBN under Godwin Emefiele, the former governor, redesigned the N200, N500 and N1,000 notes.
The redesigned notes were unveiled on December 23, 2022. The deadline for using the old notes as legal tender was January 31, 2023, but it was extended to February 10.
In February, a suit was initiated by some states, including Kaduna, Kogi, and Zamfara, challenging the implementation of the policy.
Five days later, the supreme court restrained the CBN from giving effect to the deadline, following an ex parte application brought by the three states.
They supreme court faulted the apex bank’s policy, saying the timing and implementation were defective.
The policy caused severe hardship, leading to cash scarcity and protests across the country.
On November 19, 2023, the CBN said the old naira notes remain legal tender and will be used indefinitely.
In March 2023, the supreme court extended the deadline to phase out old naira notes to December 31, 2023.
On November 29, 2023, the supreme court ruled that old and new naira notes will co-exist as legal tender until further notice.
THE MOTION
Moving the motion titled: ‘Need for the CBN to sensitize Nigerians About the Non-legal Tender Status of Old Naira Notes from January 1 2025’, Ogene claimed that by the supreme court judgment, the old naira 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”.
He said the CBN has “not shown any sign of sensitisation or kick-started any awareness programme to remind Nigerians about this important economic policy to make them prepare for the December 31 deadline”.
The lawmaker said 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 from January 1, 2025″.
The legislator said 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, there is nothing to show that the apex bank is prepared for the exercise”.
He said 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 only the new notes”.
The motion was unanimously adopted without debate when it was put to a voice vote by Benjamin Kalu, the deputy speaker, who presided over plenary.
Consequently, the house asked the 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”.
The house further urged the 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” and to “kick-start awareness programmes for Nigerians to be aware and prepare for the deadline of December 31, 2024”.
The green chamber mandated the committee on banking regulations to ensure compliance and report back to the house within 21 days.
