CBN affirms old Naira notes will remain legal tenders indefinitely, dispels December 2024 deadline

The Central Bank of Nigeria (CBN), says it has no intention of discontinuing the circulation of the old series of N200, N500 and N1,000 banknotes by December 31, 2024.

The apex bank’s clarification came on a day the House of Representatives called on it to increase issuance of the newer N200, N500 and N1,000 denominations, and commence the phase out of old notes from circulation before the December 31, 2024 deadline for their discontinuation.

The House further urged the apex bank to order commercial banks to immediately stop cash payment to their customers with old N200, N500 and N1,000 notes as well as engage in gradual mopping up of the old notes.

The resolution of the lower chamber, which was moved at plenary by Hon. Afam Ogene, followed the adoption of a motion of urgent national importance on the need for CBN to sensitise Nigerians about the non-legal tender status of old naira notes from January 1, 2025.

However, in a statement released last night October 24 by its acting Director, Corporate Communications Department, Mrs. Sidi-Ali, Hakama, the CBN said such claims by the House are “false and calculated to disrupt the country’s payment system”.

For the avoidance of doubt, the CBN maintained that the order of the Supreme Court on Wednesday, November 29, 2023, which granted the prayer of the Attorney-General of the Federation and Minister of Justice to extend the use of old Naira banknotes ad infinitum, remains in force.

Similarly, the CBN’s directive to all its branches to continue to issue and accept all denominations of Nigerian banknotes, old and re-designed, to and from deposit money banks (DMBs) remains in force.

Hakama further pointed out that the central bank’s earlier directive to all its branches to continue to issue and accept all denominations of Nigerian banknotes, old and re-designed, to and from deposit money banks (DMBs) was still in effect.

The Supreme Court had ordered that the old series of N200, N500, and N1,000 banknotes shall continue to be legal tender alongside the redesigned versions.

Accordingly, all banknotes issued by the CBN will continue to remain legal tender indefinitely, the statement added.

“We, therefore, advise members of the public to disregard suggestions that the said series of banknotes will cease to be legal tender on December 31, 2024.

We urge Nigerians to continue to accept all Naira banknotes (old or redesigned) for their day-to-day transactions and handle them with the utmost care to safeguard and protect their lifecycle.

Furthermore, the general public is encouraged to embrace alternative modes of payment, e-channels, in order to reduce pressure on the use of physical cash.”