The Central Bank of Nigeria (CBN) recently issued a statement reassuring the public that the old Naira banknotes, specifically the N200, N500, and N1,000 denominations, will remain valid and in circulation indefinitely. This clarification comes in response to growing concerns and confusion about the potential withdrawal of these banknotes by December 31, 2024, as previously suggested by the House of Representatives.

In late 2022, Nigeria underwent a currency redesign aimed at curbing inflation and reducing the prevalence of counterfeit notes. As part of this initiative, the CBN introduced new banknotes while phasing out the older series. However, the transition was met with significant challenges, including public backlash over cash shortages and the abrupt withdrawal of old notes.

In a recent session, the House of Representatives called on the CBN to increase the circulation of the new Naira notes and to begin phasing out the old ones. They urged the central bank to stop commercial banks from making cash payments using the old notes and to gradually collect these notes from circulation. This motion was spurred by concerns about the legal status of the old notes post-December 2024, when they were believed to be no longer valid.

In response to the House’s claims, the CBN issued a statement on October 24, 2024, categorically denying any plans to discontinue the use of the old Naira banknotes. The acting Director of Corporate Communications, Mrs. Sidi-Ali Hakama, emphasized that the assertions made by the House were “false and calculated to disrupt the country’s payment system.”

The CBN reaffirmed that a Supreme Court ruling from November 29, 2023, allowed the continued circulation of the old Naira notes. This ruling granted the Attorney-General of the Federation the authority to maintain the legal status of the old banknotes indefinitely, alongside the newly introduced versions.

Hakama further clarified that all CBN branches are directed to continue issuing and accepting both old and redesigned banknotes in their operations with commercial banks. This ensures that the public can continue using their old Naira notes without concern for an upcoming deadline.

This clarification from the CBN is crucial for everyday Nigerians who may have been confused or worried about the future of their currency. By confirming that old Naira notes will remain legal tender, the CBN aims to stabilize the currency situation and prevent panic among citizens regarding their money’s validity.

For individuals and businesses, this means they can continue conducting transactions using their old Naira notes without fear of them becoming obsolete. It also alleviates the burden on those who may not have easily transitioned to using the new banknotes, especially in rural areas where access to new currency has been limited.

• Old Naira Notes Validity: Old N200, N500, and N1,000 banknotes will remain legal tender indefinitely.
• Refutation of Claims: The CBN denies any plans for withdrawal of old notes by December 2024.
• Supreme Court Ruling: Continued use of old banknotes is supported by a Supreme Court decision.
• Public Reassurance: Citizens can use old notes without concern for their validity.

This situation highlights the importance of clear communication from financial authorities and the need for ongoing support to the public during transitions in currency management.