Central Bank of Nigeria Affirms Continued Validity of Old Bank Notes as Legal Tender
In a recent announcement, Nigeria’s central bank declared that old banknotes, originally scheduled for removal from circulation next month, will now continue to be considered legal tender. This decision brings an end to months of uncertainty, especially after a previous attempt earlier in the year to phase out these notes resulted in significant cash shortages and public discontent.
The Supreme Court, in March, directed the Central Bank of Nigeria (CBN) to extend the usability of the old 1,000 ($1.18), 500, and 200 naira notes until December 31. The initial attempt to withdraw these notes from circulation had sparked widespread hardship and public dissatisfaction, even becoming an issue during elections.
The central bank had previously justified the removal of the old notes by asserting that the new ones would be more resistant to counterfeiting, and the process would aid in managing liquidity in an economy where a significant portion of the money is held outside of banks.
Related Posts
However, in a recent announcement, the Central Bank of Nigeria (CBN), under new leadership since September, stated that the old banknotes “will remain legal tender ad infinitum, even beyond the initial December 31, 2023 deadline.” This decision signals a reversal of the earlier plan to phase out these notes.
During the election campaign, President Bola Tinubu had expressed opposition to the removal of the old banknotes.
