CBN Gives Fresh Update on the Validity of Old Naira Notes

The Central Bank of Nigeria (CBN) has officially dispelled rumors about a 31 December deadline for the use of old naira notes, reiterating that the old and redesigned N1,000, N500, and N200 denominations will remain legal tender indefinitely. This clarification aligns with a Supreme Court ruling delivered on 29 November 2023, ensuring the concurrent circulation of all versions of the affected naira notes without any set expiration date.

CBN’s Statement on Legal Tender

In a statement released by Hakama Ali, the Acting Director of Corporate Communications, the CBN addressed widespread misinformation regarding the validity of old naira notes. The statement emphasized the following:

“The Central Bank of Nigeria (CBN) has observed the misinformation regarding the validity of the old N1000, N500, and N200 banknotes currently in circulation. In line with the Bank’s previous clarifications and to offer further assurance, the CBN wishes to reiterate that the subsisting Supreme Court ruling granted on 29 November 2023 permits the concurrent circulation of all versions of the N1000, N500, and N200 denominations of the naira indefinitely.”

The bank further clarified that all versions of naira notes, including the commemorative and previous designs of the N100 denomination, remain valid and are acceptable for daily transactions.

Addressing Public Concerns

The CBN’s statement comes in response to ongoing confusion following earlier announcements from other sources suggesting the old notes would cease to be legal tender by the end of 2023. The CBN urged Nigerians to disregard such claims and continue to accept all naira notes, whether redesigned or otherwise.

Additionally, the apex bank encouraged Nigerians to embrace alternative payment methods such as electronic channels to reduce reliance on physical cash. This recommendation aligns with global trends toward digital financial transactions and aims to mitigate the pressure on cash usage in the economy.

Background on the Currency Redesign Programme

The reassurance follows a turbulent period marked by the CBN’s currency redesign programme introduced in late 2022. This initiative aimed to curb currency hoarding, reduce counterfeiting, and promote digital payments but inadvertently caused significant economic disruptions. The resultant cash scarcity led to widespread hardship and culminated in a legal battle resolved by the Supreme Court’s 29 November ruling.

Earlier this year, the House of Representatives suggested a 31 December deadline for the old notes to cease being legal tender. However, the CBN’s swift directive to its branches to continue issuing and accepting all banknotes has put such speculations to rest.

What This Means for Nigerians

The continued validity of all naira notes provides a significant relief to individuals and businesses still holding old naira denominations. It ensures a seamless coexistence of the old and redesigned notes, fostering greater financial stability and inclusivity.

Key takeaways include:

• Legal Tender: All versions of N1,000, N500, and N200 notes, along with N100 notes, remain legal tender indefinitely.
• Acceptance: Nigerians are advised to accept both old and new naira notes for transactions without fear of invalidity.
• Digital Payments: The adoption of electronic payment channels is encouraged to complement physical cash usage.

Conclusion

The CBN’s latest clarification underscores its commitment to ensuring clarity and stability in Nigeria’s financial system. By reaffirming the validity of old and redesigned naira notes, the bank has addressed public concerns and reinforced trust in the nation’s currency.

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