The Central Bank of Nigeria (CBN) has firmly denied claims that old Naira notes will cease to be legal tender by the end of 2024.
Rumors had been circulating that the old N200, N500, and N1,000 notes would no longer be accepted after December 31, 2024.
However, the CBN clarified that these claims are false.
In a statement issued by Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, the bank emphasized that there is no deadline for the use of old Naira notes.
She urged Nigerians to disregard the rumors.
Mrs. Hakama Sidi Ali stated that the rumors about the December 31 deadline were “false and intended to cause confusion within the country’s payment system.”
She also reiterated that the Supreme Court’s order from November 29, 2023, is still in effect.
“The order of the Supreme Court, which extends the use of old banknotes indefinitely, remains valid,” the statement read.
This ruling had come as a result of legal actions taken by the Attorney General of the Federation to stop the CBN from enforcing deadlines on the old notes.
Mrs. Ali added that the CBN has directed all its branches to continue issuing and accepting both old and redesigned banknotes.
The Supreme Court’s decision in 2023 put an end to the uncertainty surrounding the legality of the old Naira notes.
The court ruled that the old series of the N200, N500, and N1,000 banknotes would remain legal tender alongside the redesigned versions indefinitely.
This was a relief to millions of Nigerians who had been struggling during the chaotic cash swap earlier in the year.
At the time, the CBN’s abrupt push for redesign had caused a severe cash shortage, leading to widespread frustration and economic disruption.
Despite the clarity of the Supreme Court’s ruling, rumors about a new deadline began to surface recently.
These false claims have spread across various forums, causing anxiety among Nigerians.
In response, the CBN felt it necessary to address the matter publicly.
“For the avoidance of doubt, all Naira banknotes, old or redesigned, will remain legal tender indefinitely,” the CBN said in its statement.
The bank also urged citizens to continue using all Naira notes in their daily transactions.
In its statement, the CBN also encouraged Nigerians to move towards using electronic payment methods.
The bank said digital channels would reduce the reliance on cash and ease the burden on the physical currency system.
“Nigerians are encouraged to embrace electronic payment as an alternative to cash,” the CBN stated.
The shift to digital payments, the bank argued, would help improve the efficiency of Nigeria’s payment system and reduce the pressure on the circulation of cash.
The controversy over the Naira notes began in 2022 when the former CBN Governor, Mr. Godwin Emefiele, announced that the Naira would be redesigned.
The goal, according to the CBN, was to curb corruption, tackle the problem of too much money in circulation, and reduce the risk of currency fraud.
Emefiele set a deadline of January 31, 2023, for Nigerians to exchange their old notes for new ones.
This sparked a rush to banks as people tried to meet the deadline.
Many Nigerians were left scrambling to deposit their old notes before the cut-off date, and the situation became even more dire when the deadline was extended but cash availability remained scarce.
Between March and April 2023, Nigeria faced one of its worst cash shortages in recent history.
The redesign of the Naira had caused a liquidity crisis that left many Nigerians without access to money.
Queues formed at ATMs, and people struggled to get even small amounts of cash for daily transactions.
Protests erupted across the country as citizens called on the government to resolve the situation.
Traders and businesses also suffered as the cash crunch disrupted economic activities.
The scarcity of the new Naira notes made life extremely difficult for ordinary Nigerians, and public confidence in the CBN’s handling of the situation dropped sharply.
After weeks of confusion and chaos, the matter was brought before the Supreme Court.
In a landmark ruling on November 29, 2023, the court extended the use of the old Naira notes indefinitely.
The court’s decision was seen as a win for the Nigerian public, many of whom had faced significant hardship due to the shortage of cash.
This ruling also forced the CBN to reconsider its approach to the redesign of the currency and its efforts to manage the country’s money supply.
Since the ruling, both old and new Naira notes have been used in circulation, and the tension surrounding the issue has largely subsided.
As of now, both old and new Naira notes remain in use across the country, with no deadline in sight for when the old notes will be phased out.
The CBN has indicated that it will continue to monitor the situation, but there are no plans to introduce any new deadlines for the withdrawal of the old notes.
Meanwhile, the bank is pushing for greater adoption of electronic payments to reduce the dependence on cash.
The use of digital payments has been growing in Nigeria, but many people, especially in rural areas, still rely heavily on physical cash for their transactions.
The CBN’s focus now seems to be on promoting digital payment options while maintaining the legality of both the old and new notes.
