The Central Bank of Nigeria (CBN) has extended the use of old higher denominations of the Naira beyond the December 31, 2023 date earlier set for the banknotes to cease to be legal tenders.
The central bank introduced the redesigned N200, N500 and N1,000 denominations in October 2022 and different deadlines were set for the old designs of the denominations to cease to be legal tenders.
But, the apex has made a U-turn, saying all banknotes remain legal tender indefinitely, suggestive that the Naira redesign policy may have been abandoned.
“Without prejudice, the Central Bank of Nigeria wishes to inform the general public of its desire to extend the legal tender status deadline of the old design of N200, N500 and N1,000 denominations, ad infinitum. This is in line with international best practices and to forestall a repeat of earlier experiences.
“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,” CBN’s director, corporate communications department, Isa AbdulMumin, said in a statement on Tuesday evening.
AbdulMumin said the Central Bank of Nigeria was working with the relevant authorities to vacate the subsisting court ruling on the same subject.
Accordingly, he said 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,” he added.
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