The Central Bank of Nigeria (CBN) has taken a significant step by extending the validity of the old N200, N500, and N1,000 banknotes indefinitely. This decision, announced by the CBN’s Director of Corporate Communications, Isa AbdulMumin, is in alignment with international best practices and aims to prevent a recurrence of challenges experienced during the previous implementation of such policies.
The CBN had introduced redesigned N200, N500, and N1,000 denominations in October 2022, accompanied by set deadlines for discontinuing the use of the old design of these denominations as legal tender.
According to the statement titled “CBN To Allow Old Design Naira Banknotes As Legal Tender, Ad Infinitum,” AbdulMumin emphasized the CBN’s commitment to maintaining the legal tender status of the old banknote designs, beyond the initial December 31, 2023, deadline. The decision is in line with Section 20(5) of the CBN Act 2007.
The statement further outlined the CBN’s collaboration with relevant authorities to address a subsisting court ruling on the same subject. It clarified that all denominations of Nigerian banknotes, both old and redesigned, will continue to be accepted and issued by CBN branches across the country.
While encouraging the public to accept all Naira banknotes for day-to-day transactions, the CBN also emphasized the importance of handling the banknotes with care to safeguard and protect their lifecycle. Additionally, the public is encouraged to adopt alternative modes of payment, such as e-channels, for their daily transactions.
This extension provides flexibility to the public and businesses in transitioning to the redesigned currency, ensuring a smoother adaptation to the changes introduced by the CBN.
