Nigeria’s Apex Bank has promptly weighed in into the budding speculations and suggestions to the effect that the old notes which have been in concurrent circulation with new ones might cease to be valid beyond December 31, 2024.
“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 1,000 banknotes shall cease to be legal tender on December 31, 2024.
The bank was categorical in its stand, “We wish to state categorically that such claims are false and calculated to disrupt the country’s payment system.
The highpoint of the confusing signals came when the House of Representatives on Thursday urged the Central Bank of Nigeria to commence the gradual withdrawal of old naira notes and make available to Nigerians new notes in N200, N500 and N1000 denominations.
The House resolution arose from the adoption of a motion of urgent national importance, sponsored by the member representing Ogbaru Federal Constituency, Anambra State, Mr Victor Ogene, during Thursday’s plenary session.
It will be recalled that the CBN in October 2022, introduced new N200, N500, and N1,000 notes and commenced the circulations in December of the same year.
The proposed transition became problematic causing untold hardship for Nigerians which then led to a series of litigations.
While the sponsor of the motion Honourable Victor Ogene of Labour Party representing Ogbaru Federal Constituency of Anambra State averred that the Supreme Court ordered that the old notes are to cease to become legal tender effective January 1,2025 the Apex countered that the Supreme Court actually permitted the notes to remain legal tender indefinitely.
“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”,states Sidi Hakama the bank’s spokesperson.
“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, e- channels, in order to reduce pressure on the use of physical cash.