CBN extends lifespan of old naira notes beyond Dec dedline

Against the backdrop of axiety over the fate of the old naira notes after the December deadline ruled by Nigeria's apex court, the Central Bank of Nigeria (CBN) said on Tuesday that the old banknotes would now remain legal tender thereafter. A statement by the regulatory bank spokesman, Isa AbdulMumin, ended months of uncertainty after an attempt earlier this year to remove them caused serious cash shortages. The Supreme Court in March ordered the Central Bank of Nigeria (CBN) to extend until Dec. 31 the use of old 1,000, 500, and 200 naira notes, whose initial withdrawal from circulation became an election issue after it caused widespread hardship and anger. In responding to the fear within the populace, the CBN reassured Nigerians that the old currency notes will continue to be acceptable as legal tender regardless of the court ruling.

The bank had defended the removal of the notes, saying new ones would be harder to counterfeit and that the process would also help control liquidity in an economy where most money is held outside banks. On Tuesday, the CBN, which has had a new governor since September, said the old bank notes "will remain legal tender ad infinitum, even beyond the initial December 31, 2023, deadline." The regulatory bank further stated that "the Central Bank of Nigeria is working with the relevant authorities to vacate the subsisting court ruling on the same subject. Accordingly, all CBN branches across the country will continue to issue and accept all denominations of Nigerian banknotes, old and redesigned, to and from deposit money banks (DMBs). "The general public is enjoined to continue to accept all Naira banknotes (old or redesigned) for day-to-day transactions and handle these banknotes with the utmost care to safeguard and protect the lifecycle of the banknotes. Also, the general public is encouraged to embrace alternative modes of payment, such as e-channels, for day-to-day transactions." During the election campaign, President Bola Tinubu opposed the removal of the old bank notes.