The Central Bank of Nigeria (CBN) has debunked the rumours making the round that the old N200, N500, and N1000 notes would cease to be legal tender after December 31, 2024.
The Bank in a statement signed by its Ag. Director, Corporate Communications, Sidi Ali, Hakama, described the claims as false and calculated to disrupt the country’s payment system.
According to the Apex Bank, the false claims have become topics of discussion at different forums recently.
Supreme Court’s ruling
The Bank reminded those peddling the rumours of a 2023 Supreme Court ruling on the matter, noting that it still remains in force to date.
“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,” the Bank stated.
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, the CBN said all banknotes issued by it 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,” the Bank added.
- The Bank also encouraged Nigerians to embrace electronic payment as an alternative to cash.
- According to the CBN, using electronic channels would help to reduce pressure on the use of physical cash.
Backstory
On 26 October 2022, the immediate past Governor of the CBN Mr Godwin Emefiele announced that the highest denominations of the Naira, the Nigerian currency, (N200, N500 and N1000 notes) would be redesigned, giving a deadline of 31 January 2023 for all old notes to be deposited in banks in exchange for new ones.
- According to the CBN, the new notes would help curb corruption and currency fraud, tackle the growing menace of kidnapping for ransom, lower inflation and address the problem of having too much money in circulation.
- While the deadline was later extended, it created cash scarcity that made life difficult for many Nigerians between March and April 2023.
The Supreme Court ruling later in the year brought an end to the CBN’s back and forth on the matter as Nigerians continue to use the old and the new notes to date.