Old Naira Notes: Perpetual Legal Tender Status Granted by the Central Bank of Nigeria
CBN Has Announced That Both The Old And New Naira Notes Shall Remain Legal Tenders
The Central Bank of Nigeria (CBN) has announced the indefinite extension of the validity of the old N200, N500, and N1,000 notes. This decision carries both historical and practical significance, shaping the way Nigerians interact with their currency.
The old Naira notes, particularly the N200, N500, and N1,000 denominations, hold a significant place in the history of Nigeria’s currency. These notes have witnessed economic transformations, policy shifts, and the evolution of the nation’s financial landscape. By extending their validity indefinitely, the CBN acknowledges the historical importance of these notes and the role they have played in shaping Nigeria’s economic narrative.
The decision to keep the old Naira notes as legal tender indefinitely is not merely a nod to history; it also addresses practical considerations. In a country where various denominations are in circulation, including both old and new notes, the extension of validity provides a transition period for individuals and businesses to adapt to the evolving currency ecosystem. This move recognizes the need for a gradual shift rather than an abrupt change that could potentially disrupt economic activities.
Says decision is line with international best practices and to forestall a repeat of earlier experiences implementing the policy
The Central Bank of Nigeria has extended the validity of the old N200, N500, and N1,000 notes indefinitely.
The apex bank’s Director, Corporate Communications, Isa AbdulMumin, said in a statement titled “CBN To Allow Old Design Naira Banknotes As Legal Tender, Ad Infinitum” on Tuesday that the decision is in line with international best practices and to forestall a repeat of earlier experiences implementing the policy.
The CBN introduced the redesigned N200, N500, and N1.000 denominations in October 2022, and certain deadlines were set for the old designs of these denominations to cease to be legal tenders.
The statement read, “Without prejudice, the Central Bank of Nigeria wishes to inform the general public of its desire to extend the legal tender status deadline of the old design of N200, N500, and N1,000 denominations and 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, 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.
“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.”
See Below:
