In response to the Supreme Court’s recent acceptance of the Minister of Justice and Attorney General of the Federation’s plea, the Central Bank of Nigeria (
CBN) has issued a directive to its branches nationwide. The directive instructs them to continue both issuing and accepting all denominations of the old and new naira notes to and from Deposit Money Banks (DMBs).
In a statement released by the CBN’s Acting Director of Corporate Communications, Mrs. Sidi Ali Akama, the apex bank clarified the implications of the Supreme Court’s order. The statement emphasized that both the old and redesigned versions of the N200, N500, and N1,000 banknotes will continue as legal tender.
The statement read: “Following the order of the Supreme Court on Wednesday, November 29, 2023, granting the prayer of the Minister of Justice and Attorney-General of the Federation to extend the use of old Naira banknotes ad infinitum, the Central Bank of Nigeria (CBN) has directed 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).
“For the avoidance of doubt, the Supreme Court ordered that the old versions of N200, 500, and N1,000 banknotes shall continue to be legal tender, alongside the re-designed versions.
“Accordingly, in line with Section 20(5) of the CBN Act 2007, all banknotes issued by the Central Bank of Nigeria (CBN), will continue to remain legal tender, indefinitely.
“Members of the public are enjoined to continue to accept all Naira banknotes (old or re-designed) for their day-to-day transactions and handle these banknotes with the utmost care, to safeguard and protect the lifecycle of the banknotes.
“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.”
Related: Old Naira Notes’ Fate Uncertain Amid Economic Hardship
This development follows a landmark decision by the Supreme Court on Wednesday, November 29, 2023. The court granted the prayer of the Minister of Justice and Attorney-General of the Federation, allowing the use of old Naira banknotes to continue indefinitely. Notably, in March of the same year, the Supreme Court had ordered the legal tender status of the old N200, N500, and N1,000 notes to persist until December 31, 2023, owing to their redesign.
As the deadline approached, concerns arose regarding cash scarcity in various commercial and individual transactions. Despite assurances from the CBN that it would accept all denominations beyond the stipulated date, the Attorney General sought legal backing from the Supreme Court to solidify this position.
Furthermore, the CBN urged the public to handle all Naira banknotes, regardless of their design, with utmost care to preserve their lifecycle. Additionally, citizens were encouraged to explore alternative payment methods such as electronic channels to alleviate the pressure on physical cash usage.
With this extension, the CBN aims to ensure a smooth transition and continued stability in the Nigerian financial landscape.
