The Central Bank of Nigeria (CBN) has reassured Nigerians that all denominations of Naira banknotes, both old and new designs, will remain valid indefinitely.
In a statement released on Friday, the Acting Director of Corporate Communications at the CBN, Mrs. Sidi Ali Hakama, debunked widespread misinformation about the expiry of old Naira notes.
“All versions of the Naira, including the old and new designs of N1,000, N500, and N200 denominations, remain valid and legal tender without any deadline,” she stated firmly.
This clarification follows growing confusion among Nigerians, fueled by rumors that the old Naira notes would cease to be legal tender by December 31, 2024.
Supreme Court Ruling Still Stands
Mrs. Hakama referenced the Supreme Court ruling of November 29, 2023, which upheld the simultaneous circulation of old and redesigned Naira notes.
She emphasized that the court’s decision allows Nigerians to use all denominations of the Naira for daily transactions without restrictions.
“For the avoidance of doubt, we reiterate that the old and new designs of N1,000, N500, and N200, as well as commemorative and previous designs of N100, remain legal tender indefinitely,” she added.
The CBN’s position aligns with earlier statements it made when the controversy over Naira redesign gained traction last year.
Public Misinformation and Economic Tensions
Rumors about an expiry date for old Naira notes have caused panic in markets and businesses across Nigeria.
Traders in some parts of the country have reportedly refused to accept old notes, fearing they might lose their value soon.
This misinformation has also sparked debates about the availability of redesigned notes and the readiness of banks to meet public demand.
A Lagos-based market trader, Mrs. Esther Ojo, shared her frustration.
“People are saying the old Naira notes will stop working in December. This confusion is affecting business,” she lamented.
CBN Urges Nigerians to Stay Calm
In response to the concerns, the CBN has advised Nigerians to disregard false claims and continue using both old and new notes.
Mrs. Hakama also called on citizens to handle Naira notes with care to preserve their longevity.
“We urge Nigerians to treat all banknotes with respect, as they are symbols of our national identity,” she said.
To reduce reliance on physical cash, the CBN encouraged the adoption of alternative payment methods such as e-channels.
“Digital transactions are faster, safer, and reduce the pressure on cash,” Mrs. Hakama added.
The Naira Redesign Controversy
The issue of Naira redesign has been a heated topic since 2022, when the CBN introduced the policy to combat inflation, counterfeiting, and illicit cash hoarding.
Initially, the transition to redesigned Naira notes faced challenges, including scarcity of the new notes and public outrage over difficulties accessing cash.
The situation reached a boiling point in early 2023, prompting the Supreme Court to intervene.
The court’s landmark ruling in November 2023 allowed old and new notes to circulate side by side indefinitely.
This decision aimed to ease the financial strain on Nigerians, particularly those in rural areas who rely heavily on cash transactions.
Economic Experts Weigh In
Economic analysts have commended the Supreme Court’s decision but stress the need for public enlightenment to dispel lingering doubts.
Dr. Ahmed Bello, a financial expert, believes misinformation about the Naira contributes to economic instability.
“When people are unsure about the status of their currency, it creates panic and disrupts commerce,” he explained.
He also called on the CBN to intensify its awareness campaigns and engage stakeholders such as market associations and transport unions.
CBN’s Vision for a Cashless Economy
While assuring Nigerians of the validity of all banknotes, the CBN continues to push its cashless policy agenda.
The policy encourages the use of digital payment platforms like mobile banking, USSD transfers, and point-of-sale (POS) systems.
According to Mrs. Hakama, digital payments can enhance convenience and reduce the risks associated with carrying cash.
“Adopting e-payment channels benefits everyone and aligns with global financial trends,” she said.
