The central bank’s clarification came on a day the House of Representatives called on the apex bank to increase issuance of the newer N200, N500 and N1,000 denominations, and commence the phase out of old notes from circulation before the December 31, 2024 deadline for their discontinuation.

The House further urged the apex bank to order commercial banks to immediately stop cash payment to their customers with old N200, N500 and N1,000 notes as well as engage in gradual mopping up of the old notes.

The resolution of the lower chamber, which was moved at plenary by Afam Ogene, followed the adoption of a motion of urgent national importance on the need for CBN to sensitise Nigerians about the non-legal tender status of old naira notes from January 1, 2025.

Ogene expressed worry that the CBN had not shown any sign of sensitisation or kick-started any awareness programme to remind Nigerians about this important economic policy in order to make them prepare for the deadline of December 31, 2024.

However, the CBN in a statement issued by Mrs. Sidi-Ali, Hakama, the acting director, Corporate Communications Department, said such claims by the House are “false and calculated to disrupt the country’s payment system”.

For the avoidance of doubt, the CBN maintained that the order of the Supreme Court on Wednesday, November 29, 2023, which granted the prayer of the Attorney-General of the Federation and Minister of Justice to extend the use of old Naira banknotes ad infinitum, remains in force.

Similarly, the CBN’s directive to all its branches to continue to issue and accept all denominations of Nigerian banknotes, old and re-designed, to and from deposit money banks (DMBs) remains in force.

Hakama further pointed out that the central bank’s earlier directive to all its branches to continue to issue and accept all denominations of Nigerian banknotes, old and re-designed, to and from deposit money banks (DMBs) was still in effect.

The Supreme Court had ordered that the old series of N200, N500, and N1,000 banknotes shall continue to be legal tender alongside the redesigned versions.

Accordingly, all banknotes issued by the CBN will continue to remain legal tender indefinitely, the statement added.

Hakama said,

“We, therefore, advise members of the public to disregard suggestions that the said series of banknotes will cease to be legal tender on December 31, 2024.

“We urge Nigerians to continue to accept all Naira banknotes (old or redesigned) for their day-to-day transactions and handle them with the utmost care to safeguard and protect their lifecycle.

“Furthermore, the general public is encouraged to embrace alternative modes of payment, e-channels, in order to reduce pressure on the use of physical cash.”

On November 14, 2023, the CBN announced the extension of the legal tender status of the old N200, N500, and N1, 000 denominations beyond the December 31, 2023 deadline – and with no definite time frame for their retirement.

The bank noted that the decision was in line with global best practices and to “forestall a repeat of earlier experiences”.

The central bank stated, “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.”

The apex bank had introduced the redesign of N200, N500, and N1,000 denominations in October 2022 and various deadlines were set for the old design of the banknotes to be retired.

However, the economic hardship that resulted from the implementation of the currency redesign programme compelled some state governors to sue the central bank.

The apex bank, however, stated that 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 statement added.

The Federal Government,  through the office of the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), approached the Supreme Court on Wednesday morning, praying for a review of the apex court verdict of March 3 that the old N200, N500, and N1,000 should be legal tender till December 31.

Justice Okoro held:  “The old versions of 200, 500, and 1,000 Naira notes/currency shall continue to be legal tenders alongside the new or designed versions until the government decides to bring the circulation of the old versions to an end after its consultation with critical stakeholders and after putting all required structures in place.”

Other Justices on the panel agreed with the verdict.

They are Justices Uwani Aba-Aji, Helen Ogunwumiju, Ibrahim Saulawa, Adamu Jauro, Tijani Abubakar, and Emmanuel Agim.

The Wednesday’s order was the second time the Supreme Court extended the lifespan of the old naira notes.

Similarly, the Central Bank of Nigeria, on Wednesday, directed all banks to continue to issue and accept both the old and the redesigned N200, N500, and N1,000  notes until further notice.

It noted that the old N200, N500, and N1,000 would no longer be withdrawn from circulation from December 31.

The apex bank announced this in a statement by Ali Sidi Hakama, the acting Director, Corporate Communications.

The directive was in response to Wednesday’s ruling by the Supreme Court, which lifted the December 31 deadline for the old  N200, N500, and N1,000  notes.

In a statement, Dr. Isa AbdulMumin, the CBN Director, Corporate Communications Department, said the decision was in line with global best practices and to, “forestall a repeat of earlier experiences.”

He said,

“Thus, all banknotes issued by the 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.”

The apex bank had introduced the redesign of N200, N500, and N1,000 denominations in October 2022 and various deadlines were set for the old design of the banknotes to be retired.

However, the economic hardship that resulted from the implementation of the currency redesign programme compelled some state governors to sue the central bank.

The apex bank, however, stated that 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 statement added.

Following the Supreme Court ruling of March 3, 2023, the apex bank had ordered banks to comply with the ruling of the Supreme Court ordering the old naira notes to remain legal tender and operate simultaneously with the redesigned naira notes till December 31, 2023.

The bank stated that it met with the Bankers’ Committee and directed that the old N200, 500, and N1000 banknotes remain legal tender alongside the redesigned banking notes till December 2023, and consequently, all concerned are directed to conform accordingly.

The clarification by the central bank became necessary in view of the divergent social media misinterpretations and speculations of the validity of the affected naira denominations as the deadline nears.

The CBN gave the directive at a Bankers’ Committee meeting held on Sunday, according to a statement by the acting Director, CBN Corporate Communications, Isa AbdulMumin, on Monday evening.

According to a statement issued on Monday by the acting Director of CBN Corporate Communications, Isa AbdulMumin, the CBN issued the directive during a Bankers’ Committee meeting on Sunday.

It stated that President Muhammadu Buhari did not instruct the Governor of the Central Bank of Nigeria, Godwin Emefiele, or the Attorney-General of the Federation, Abubakar Malami, to disregard “any court orders involving the government and other parties.”

The statement read, “In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterized the government of President Muhammad Buhari, and by extension, the operations of the Central Bank of Nigeria, as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023.

“Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500, and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023.
Consequently, all concerned are directed to conform accordingly.”

The Supreme Court of Nigeria on March 3, 2023 delivered a judgment on the suit by three States (Kaduna, Kogi and Zamfara) against the Federal Government of Nigeria, over the cashless policy implementation strategies.

The court ruled that old N1000, N500, N200 remain legal tenders till December 31, 2023.

Some days after the judgment, many businesses are still confused whether to accept the old naira notes or not as the CBN kept mute on the Supreme Court’s judgment.

Now, Professor Charles Soludo, former Governor of the Central Bank and the incumbent Governor of Anambra State, is reporting on his verified Facebook page that the “Commercial banks have been directed by the Central Bank of Nigeria (CBN) to dispense old currency notes and to also receive same as deposits from customers”.

“Tellers at the commercial banks are to generate the codes for deposits and there is no limit to the number of times an individual or company can make deposits.

“The Governor of the CBN gave the directive at a Bankers’ Committee meeting held on Sunday, 12th March, 2023.

“The Governor, Dr Godwin Emefiele, personally confirmed the above to me during a phone conversation on Sunday night.  Residents of Anambra are therefore advised to freely accept and transact their businesses with the old currency notes (N200; N500; and N1,000) as well as the new notes.

“Residents should report any bank that refuses to accept deposits of the old notes.  Anambra State Government will not only report such a bank to the CBN, but will also immediately shut down the defaulting branch”.

He warned residents and businesses in Lagos against rejecting old notes and vowed that those who reject old notes will be prosecuted.

The Governor, in a statement on Wednesday, said:

I hereby commend and applaud your patience and calmness, following the sad controversy generated by the Naira shortage crisis.

I would like to inform you that the Lagos State Government has joined the dispute at the Supreme Court, which today adjourned the hearing of the matter till February 22.

When the matter first came up on February 8, the apex court said the old notes remained legal tender.

That position has not changed. Therefore we hereby warn those rejecting the old notes to desist from doing so or face prosecution. It is against the law to reject the old notes, as doing so is contrary to the position of the Supreme Court.

I, therefore, plead with everyone to remain law-abiding and shun mischief makers who may want to exploit this temporary situation to promote their anti-people agenda. I am confident that the Judiciary will resolve all the issues around the currency shortage crisis.

To cushion the effect of the Central Bank of Nigeria (CBN) directive on the old notes, especially on the vulnerable among us, Lagos State has started the distribution of the food packs as I earlier promised, while the 50% fares slash on all State transportation services facilities continues.

Thank you all and God bless.

This was said by the CBN Governor, Godwin Emefiele on Tuesday when he testified before a House of Representatives ad hoc committee.

Recall the CBN on Sunday had announced the extension of deadlines to deposit old Naira notes after several pleas from Nigerians.

Femi Gbajabiamila, the Speaker of the House, claims that the CBN Act requires commercial banks to accept obsolete currency.

“After the expiration date, such naira notes changed will no longer be legal tender but it also says that even five months, three months, or two months after, even in June, all the old notes presented to the bank shall be redeemed by the bank,” Mr Gbajabiamila had said in a speech on Thursday.

While speaking at the hearing, Emefiele said he is in agreement with the parliament on section 20.

“Section 20 says even after the old currency has lost its legal tender status that we are mandated to collect that money. And I stand with the House of Reps on this,” he said.

He explained further that “if you have your money that you have not been able to send to the bank. We will certainly give you the opportunity to bring them back into the CBN to redeem it.

Either you pay it to your bank account or you want to do an exchange — we give you. You will not lose your money. This is the assurance I give to Nigerians,” he stated.