CBN Extends Legal Tender Status of Old Notes Indefinitely

The Central Bank of Nigeria (CBN) has made a significant announcement, extending the legal tender status of old N200, N500, and N1000 notes from the initial deadline of December 31, 2023, to an indefinite period. The statement was released on Tuesday by the CBN’s Director of Corporate Communications, Dr. Isa AbdulMumin, who also revealed the bank’s efforts to vacate existing court rulings related to the old notes.

Key Points from the Statement

The statement emphasized the following key points:

1. Redesign Introduction: The CBN recalled the introduction of the redesigned N200, N500, and N1000 denominations in October 2022, with specific deadlines initially set for the old design of these denominations to cease as legal tenders.
2. Extension to Forever: The CBN expressed its desire to extend the legal tender status deadline for the old design of the mentioned denominations indefinitely, aligning with international best practices and aiming to prevent a repeat of earlier challenges.
3. Legal Tender Ad Infinitum: According to the statement, all banknotes issued by the CBN, in line with Section 20(5) of the CBN Act 2007, will continue to remain legal tender indefinitely, going beyond the initial December 31, 2023, deadline. The CBN is actively working with relevant authorities to overturn existing court rulings on the same subject.
4. Branch Operations: The CBN assured that all its branches across the country will continue to issue and accept all denominations of Nigerian banknotes, both old and redesigned, to and from banks.
5. Public Call to Action: The apex bank urged the public to accept all Naira banknotes, whether old or redesigned, for day-to-day transactions. It also encouraged embracing alternative modes of payment.

This announcement signals a shift in the timeline for the withdrawal of old notes, providing more flexibility for the public and stakeholders. As the CBN continues its efforts to navigate legal implications, the extension aims to ensure a smooth transition and acceptance of various currency denominations in the Nigerian financial landscape.