The Central Bank of Nigeria (CBN) has declared that the old naira notes will maintain their legal tender status indefinitely.
Previously, the CBN had introduced redesigned N200, N500, and N1,000 denominations in October 2022, setting specific deadlines for the discontinuation of the old notes of these denominations as legal tender.
However, in a statement on Tuesday, the Director of Corporate Communications at the CBN, Isa AbdulMumin, announced the desire to extend the legal tender status deadline for the old design of N200, N500, and N1,000 denominations “ad infinitum.”
The statement affirmed that all banknotes issued by the CBN, in line with Section 20(5) of the CBN Act 2007, will persist as legal tender indefinitely, surpassing the initial December 31, 2023, deadline.
“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. 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.”
Concerns about naira scarcity have surfaced across the country, impacting cash withdrawals in banks.
Residents of Lagos, Abuja, Kano, Katsina, Jigawa and Adamawa and in other parts of the country have reported difficulties in withdrawing substantial cash from banks, affecting local market transactions, especially in areas preferring cash over bank transfers.
The observed cash scarcity, particularly in Borno and Kano states, has prompted the CBN to clarify that high-volume withdrawals by Deposit Money Banks (DMBs) and panic withdrawals from Automated Teller Machines (ATMs) contribute to the apparent shortage in certain locations.
Ada Peter
