Reps To CBN: Issue More Naira Notes, Withdraw Old Ones Before December 31

The House of Representatives has urged the Central Bank of Nigeria (CBN) to issue more new N200, N500 and N1,000 notes and begin the gradual withdrawal of the old notes from circulation before the deadline of December 31, 2024.

The House also asked CBN to order commercial banks to forthwith stop cash payment to their customers with old N200, N500 and N1,000 notes but instead, engage in gradual mopping up of the old notes.

However, the CBN said again that there is no plan to stop the circulation of the denominations of the redesigned Naira banknotes.

In a statement that was issued late Thursday night, the central bank said it was reacting to insinuations in some quarters suggesting that the old series of the N200, N500, and N1,000 banknotes will cease to be legal tender on December 31, 2024.

“We wish to state categorically that such claims are false and calculated to disrupt the country’s payment system. For the avoidance of doubt, the order of the Supreme Court of Nigeria on Wednesday, November 29, 2023, granting the prayer of the Attorney-General of the Federation and Minister of Justice to extend the use of old Naira banknotes ad infinitum, subsists.

“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. It will be recalled that the Supreme Court ordered that the old series of N200, N500, and 1,000 banknotes shall continue to be legal tender alongside the redesigned versions.

“Accordingly, all banknotes issued by the Central Bank of Nigeria (CBN) will continue to remain legal tender indefinitely. 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,” the bank’s acting director of corporate communications Sidi Hakama said in the statement.

She also urged the general public to embrace alternative modes of payment, e-channels, in order to reduce pressure on the use of physical cash.

The house of reps further urged the apex bank to kick-start awareness programmes for Nigerians to be aware and prepare for the deadline of December 31, 2024.

These followed the adoption of a motion moved by member representing, Ogbaru Federal Constituency of Anambra state, Hon. Afam Victor Ogene at plenary on Thursday.

Moving the motion, the lawmaker recalled the hardship, frustration, controversy and chaotic situation occasioned by CBN change of currency in 2023, that affected validity of the old N200, N500 and N1,000 Naira notes at the time that resulted in litigations.

He also recalled the current scarcity that led to untold hardship in the nation as a result of the CBN’s inability to supply new versions of the changed currency notes.

Ogene said going by the Supreme Court’s subsequent ruling and order, the N200, N500 and N1,000 notes shall cease to be legal tender, medium of exchange for goods and services in Nigeria, and shall also cease to be in circulation as from January 1, 2025.

“Concerned, that the CBN has not shown any sign of sensitization or kick-started any awareness programme to remind Nigerians about this important economic policy in order to make them prepare for the deadline of 31/12/2024.

“Worried that Nigerians will be plunged into more chaotic situations than what happened in February, 2023, when the old N200, N500 and N1,000 notes shall cease to be legal tender and medium of exchange for goods and services as from January 1, 2025.

“Disturbed that the CBN ought to have started public awareness, such as Jingles, Television and Radio announcements, social media postings, flyers, daily newspapers and periodic magazines publications three months before the deadline but now with about two months to the deadline, yet nothing to show that the apex bank is prepared for the exercise.

“Further worried that the CBN is still comfortably releasing the old N200, N500 and N1,000 notes mixed with the new N200, N500 and N1,000 notes for business transactions in Nigeria, instead of the gradual mopping up of the old notes from circulation or ordering commercial banks to do so by issuing out only the new notes,” he argued.

Adopting the motion, the House directed its Committee on Banking Regulations to ensure compliance and report back to the House within 21 days.