With just about six weeks to the earlier deadline set by it to illegalize the use of old banknotes in the country, the Central Bank on Tuesday reversed the directive, thereby extending the legality of the old notes for transactions beyond the December 2023 deadline.
It would be recalled that the apex bank had introduced the redesign of N200, N500 and N1,000 denominations in October 2022 and set certain deadlines for the older banknotes in the denominations, which will make them cease as legal tenders.
However, in a statement by its Director, Corporate Communications, Dr. Isa AbdulMumin, clarified that without prejudice, the apex bank wished 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, ad infinitum.
According to him, the latest directive was in line with international best practices and to forestall a repeat of earlier experiences.
He clarified: “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).
“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. Also, the general public is encouraged to embrace alternative modes of payment, e-channels, for day-to-day transactions”, the Director added.
