In a significant move, the Central Bank of Nigeria (CBN) has announced the indefinite extension of the validity of the old N200, N500, and N1,000 banknotes. The apex bank expressed its commitment to maintain the legal tender status of these denominations, surpassing any previous deadlines.
The decision, outlined in a statement signed by the Director of Corporate Communications, Isa AbdulMumin, aims to align with international best practices and prevent disruptions witnessed in the past. The CBN is actively collaborating with relevant authorities to address a court ruling on this matter.
Titled ‘CBN To Allow Old Design Naira Banknotes as Legal Tender, Ad Infinitum,’ the statement emphasizes that all banknotes issued by the CBN, in accordance with Section 20(5) of the CBN Act 2007, will continue to remain legal tender indefinitely, even beyond the initial December 31, 2023, deadline.
The CBN encourages the public to accept both old and redesigned Naira banknotes for day-to-day transactions. Additionally, the statement encourages the adoption of alternative payment modes and electronic channels for everyday transactions.
This marks the third statement from the CBN addressing Naira notes recently. The central bank clarified earlier this month that there was no scarcity of Naira in the country and reiterated that every banknote remains legal tender.
The decision to extend the validity of the old notes follows a Supreme Court ruling in March that directed the CBN to allow old N200, N500, and N1,000 notes as legal tender until December 31, 2023. The court invalidated the CBN’s new Naira design policy, citing a lack of due consultation and compliance with constitutional provisions.
With this directive, Nigerians can continue using old N200, N500, and N1,000 notes beyond December 2023. The National President of the Association of Mobile Money and Bank Agents in Nigeria, Victor Olojo, commended the CBN’s decision, stating that it prevents potential scarcity and addresses speculations.
