The Central Bank of Nigeria (CBN) has offered clarification regarding the expiration date for the old 200, 500, and 1,000 naira notes.
In March, the Supreme Court declared that old naira notes will continue to be legal tender in Nigeria until December 31, 2023.
With just two months left until the deadline, there have been rumors of cash scarcity even with a high money supply in circulation.
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The Central Bank of Nigeria (CBN) has provided clarification that the old 200, 500, and 1000 naira notes will remain legal tender even after December 31, 2023.
An anonymous senior official has reassured Nigerians that both old and new banknotes will continue to be considered legal tender.
It was reported that in March 2023, following a Supreme Court verdict, the CBN announced that these banknotes would cease to be in circulation after the conclusion of 2023. However, the recent clarification indicates a change in that stance.
CBN speaks on old naira notes
In light of concerns raised by Nigerians, just two months before the deadline and reports of currency scarcity in two states, the CBN official advised Nigerians not to panic.
He said:
“They are all legal tender. Nigerians should continue to spend them. There is no need to worry about the December 31 deadline.”
The CBN official stressed that the gradual removal of the old banknotes is being carried out to prevent further difficulties for the public, as reported by BusinessDay.
The official assured:
“We won’t want Nigerians to undergo similar pain as they experienced earlier this year. The phasing out of the old notes will be gradual. It won’t be rushed.”
Old naira notes and protest
In October 2022, it was reported that Godwin Emefiele, the former CBN governor, revealed plans to redesign the N200, N500, and N1,000 banknotes.
Following the announcement, citizens were given instructions to deposit their old notes before January 31, 2023, as these notes would no longer hold the status of legal tender after that date.
The directive to deposit old notes by January 31, 2023, indeed resulted in a cash shortage in February, which brought hardships to citizens and even led to protests and attacks on banks in certain parts of the country.
There are concerns that a similar situation could occur again with just two months left until the Supreme Court’s December deadline.