No More December: CBN Says Old Naira Notes Remain Legal Tender Indefinitely, Gives Reasons

No More December: CBN Says Old Naira Notes Remain Legal Tender Indefinitely, Gives Reasons

  • The Central Bank of Nigeria has extended the validity of the old N200, N500, and N1,000 notes indefinitely
  • There is a subsisting order of the Supreme Court that sets a December 31 deadline to end the use of old naira notes
  • The apex bank has confirmed plans to challenge the Supreme Court order in the coming months

Dave Ibemere has over a decade of experience covering Business and the Economy

The Central Bank of Nigeria has confirmed that the old naira notes will remain legal tender indefinitely.

This was disclosed in a statement on Tuesday, November 14, 2023, signed by Isa AbdulMumin, Director, Corporate Communications.

Old naira notes
CBN makes decision on old naira notes Photo credit: Benson Ibeabuchi
Source: Getty Images

Legit.ng had reported in March 2023, the supreme court had extended the deadline to phase out the old naira notes to December 31, 2023.

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“No more December deadline”: CBN gives fresh order on withdrawal of old naira notes

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Old naira notes remain legal tender

However, on Tuesday the apex bank ease the fears of Nigerians by confirming that the old notes will remain legal tender, Punch reports.

The statement reads:

“the legal tender status deadline of the old design of N200, N500 and N1,000 denominations, ad infinitum.
"This is in line with international best practices and to forestall a repeat of earlier experiences.
“Thus, all banknotes issued by the Central Bank of Nigeria (CBN), in accordance with Section 20(5) of the CBN Act 2007, will continue to remain legal tender, ad infinitum, even beyond the initial December 31, 2023, deadline.
"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).

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“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 utmost care, to safeguard and protect the lifecycle of the banknotes.”

CBN therefore encouraged the general public to embrace alternative modes of payment such as e-channels, for day-to-day transactions.

Naira bounces back, rises by over N200 against US dollar in 24hrs as Tinubu’s govt gets support

Legit.ng reported that Nigerian currency improved against the US Dollar on Friday, November 10, 2023, after falling to a record low at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

Data from FMDQ securities showed that the Naira closed at N780.14/$1 during the week's last trading session at the official market.

This represents 21.7% or N216.61 appreciation compared to the record low of N996.75/$1 in the preceding session of Thursday, November 9, 2023.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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