Nigeria CBN: Old Naira Notes Stay Legal Tender, Easing Cash Woes for Nigerians

Central Bank of Nigeria (CBN) has declared that the old naira notes, initially slated for discontinuation, will now remain legal tender indefinitely. The CBN's decision to extend the legal tender status comes in the wake of concerns over cash scarcity and challenges faced by residents in accessing substantial funds from banks.

As reported by Daily Trust, the CBN had previously introduced redesigned N200, N500, and N1,000 denominations in October 2022, setting deadlines for the cessation of legal tender for the old notes. However, on Tuesday, the CBN, through its Director of Corporate Communications, Isa AbdulMumin, announced the extension of the legal tender deadline "ad infinitum."

The statement assures the public that all CBN branches across Nigeria will continue issuing and accepting both old and redesigned denominations to and from Deposit Money Banks (DMBs). It emphasizes the perpetual legal tender status of all banknotes issued by the CBN, even beyond the initially stipulated December 31, 2023, deadline.

The CBN is also working to overturn a court ruling on the same subject, urging the public to accept and handle all Naira banknotes, old or redesigned, with care. Additionally, it encourages the adoption of alternative payment methods such as e-channels for day-to-day transactions.

This announcement comes against the backdrop of reported cash scarcity in various regions, impacting bank withdrawals and business transactions, particularly in the northern part of Nigeria. The CBN attributes the cash scarcity to high-volume withdrawals by Deposit Money Banks (DMBs) and panic withdrawals from Automated Teller Machines (ATMs).

As the CBN navigates the challenges posed by the current cash dynamics, the indefinite extension of legal tender status aims to alleviate concerns and ensure the smooth flow of currency within the Nigerian economy.