To Forestall Repeat Of Naira Scarcity Under Emefiele, CBN Says Old Bank Notes To Remain Legal Tender Indefinitely

The Central Bank of Nigeria is planning to vacate a subsisting order of the Supreme Court that gave December 31st deadline for the old N1000, N500 and N200 notes to cease to be legal tender.

The apex bank said it has no intention to withdraw the old notes and wants to make them legal tender forever.

The CBN said this amidst worries that the old notes will no longer be legal tender by the date stipulated in the court judgement.

In a statement on Tuesday signed by Isa AbdulMumin, the bank recalled that it introduced the redesign of N200, N500 and N1,000 denominations in October 2022.

It said certain deadlines were set for the old design of these denominations to cease as legal tenders.

The CBN said “Without prejudice, the Central Bank of Nigeria wishes to inform the general public of its desire to extend the legal tender status deadline of the old design of N200, N500 and N1,000 denominations, ad infinitum. This is in line with international best practices and to forestall a repeat of earlier experiences.

“Thus, 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 CBN said its branches across the country would continue to issue and accept all denominations of Nigerian banknotes, old and redesigned, to and from deposit money banks (DMBs).

The apex bank called on the “General public to continue to accept all Naira banknotes both old or redesigned for day-to-day transactions and handle the banknotes with utmost care, to safeguard and protect the lifecycle of the banknotes.”