The Central Bank of Nigeria (CBN) has announced the indefinite extension of the validity of the old N200, N500, and N1,000 notes. This decision, as disclosed in a statement signed by Isa AbdulMumin, the director of corporate communications, was made to align with international best practices and prevent a recurrence of previous challenges.
In March 2023, the Supreme Court extended the deadline for phasing out the old naira notes to December 31, 2023. However, on November 8, 2023, the CBN had already assured Nigerians that the old naira notes remained legal tender, alleviating concerns about their legality.
The latest statement from the CBN clarifies that the legal tender status deadline for the old design of N200, N500, and N1,000 denominations has been extended indefinitely. This decision is in accordance with Section 20(5) of the CBN Act 2007. The CBN is also working with relevant authorities to vacate the existing court ruling on the matter.
As a result, all banknotes issued by the CBN will continue to be legal tender indefinitely, going beyond the initial December 31, 2023, deadline. The statement emphasizes that all CBN branches across the country will continue to issue and accept all denominations of Nigerian banknotes, whether old or redesigned, to and from deposit money banks (DMBs).
The general public is encouraged to accept all Naira banknotes (old or redesigned) for day-to-day transactions and handle them with care to protect the lifecycle of the banknotes. Additionally, the CBN advocates for the adoption of alternative modes of payment such as electronic channels for day-to-day transactions.
This announcement follows concerns expressed by residents in various parts of the country, including Lagos, Abuja, Kano, Katsina, Jigawa, and Adamawa, about difficulties in withdrawing large sums of cash from banks, raising fears of scarcity reminiscent of experiences during previous currency-related events.