The Central Bank of Nigeria (CBN) has announced the indefinite extension of the validity of the old N200, N500, and N1,000 banknotes.
The decision, according to Isa AbdulMumin, the apex bank’s Director of Corporate Communications, is in line with international best practices and is aimed at preventing the challenges experienced during previous attempts to enforce the policy.
The CBN had initially introduced redesigned N200, N500, and N1,000 denominations in October 2022, accompanied by specific deadlines for discontinuing the use of the old design of these denominations as legal tender.
The statement released by AbdulMumin, titled “CBN To Allow Old Design Naira Banknotes As Legal Tender, Ad Infinitum,” explained the rationale behind the extension.
“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,” the statement read.
“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, 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.
“Accordingly, 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.
“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.”
