The Nigerian House of Representatives has called on the Central Bank of Nigeria (CBN) to expedite the circulation of newly printed N200, N500, and N1,000 banknotes while initiating a phased withdrawal of the older currency from circulation.
This resolution comes as the country approaches the December 31, 2024, deadline for the old notes to cease being legal tender, a ruling upheld by the Supreme Court.
The House, in response to a motion raised by Adam Victor Ogene (LP, Anambra), emphasized the urgency of increasing the availability of new notes across Nigeria’s banking system to avoid potential disruptions in the economy.
The motion called for the CBN to ensure that commercial banks are adequately supplied with the new notes to meet the demands of the public, while simultaneously withdrawing the old notes from circulation in a structured manner.
Ogene stressed that without immediate intervention from the CBN, the country risks facing significant economic challenges as the deadline for the old notes approaches. “Going by the Supreme Court’s subsequent ruling and order, the N200, N500, and N1,000 notes shall cease to be legal tender, medium of exchange for goods and services in Nigeria, and shall also cease to be in circulation as from January 1, 2025,” Ogene stated during the House session.
A key concern raised by Ogene and fellow lawmakers is the apparent lack of a comprehensive public awareness campaign to educate citizens on the upcoming changes.
The House noted that the CBN should have launched a nationwide sensitization effort months in advance, utilizing mass media channels such as television, radio, newspapers, and social media.
This, according to Ogene, would ensure that Nigerians are well-informed about the impending phase-out of the old currency notes and the introduction of the new ones.
What to know
With just two months left before the deadline, the lawmakers have expressed disappointment over the absence of visible preparations by the CBN to address the currency transition. Ogene remarked,
- He stated that the CBN should have initiated public awareness campaigns—including jingles, television and radio announcements, social media posts, flyers, daily newspaper ads, and periodic magazine publications—three months prior to the deadline.
- However, with only two months remaining, there is still no evidence that the apex bank is ready for the exercise.
- The House has urged the CBN to act swiftly to ensure that adequate measures are in place to prevent confusion and disruption to everyday financial transactions.
- The lawmakers also emphasized the importance of educating rural and underserved populations, who may not have immediate access to banking services or digital transactions, about the upcoming changes.
The CBN is expected to respond to the House’s recommendations and clarify its strategy for ensuring a smooth transition ahead of the January 2025 deadline.