Nigeria’s Central Bank has moved to quell growing concerns about the status of old naira notes, confirming that both old and redesigned versions of the N1000, N500, and N200 denominations remain valid legal tender indefinitely. The announcement comes amid widespread misinformation about the currencies’ validity beyond 2024.
Mrs. Hakama Sidi-Ali, Acting Director of Corporate Communications at CBN, issued a comprehensive statement Friday addressing public confusion and explicitly referencing the Supreme Court ruling of November 29, 2023. The ruling established the legal framework for concurrent circulation of all versions of these denominations without any time limitation.
The clarification extends beyond the controversial redesigned notes to encompass all versions of the naira, including commemorative editions and previous designs of the N100 note. This broad inclusion aims to ensure no confusion exists about any denomination’s validity in daily transactions.
The apex bank’s statement directly counters circulating rumors suggesting that the old series would become invalid after December 31, 2024. Such misinformation had begun causing unnecessary anxiety among businesses and citizens, prompting the CBN to issue this definitive clarification.
This announcement represents a significant development in Nigeria’s ongoing currency saga, which began with the controversial naira redesign policy implemented under the previous CBN leadership. The policy, which initially aimed to phase out older notes, caused considerable disruption to business activities and daily transactions across the country.
The Supreme Court’s November ruling, now reinforced by the CBN’s statement, effectively resolved the uncertainty that had plagued the Nigerian monetary system since the introduction of the redesigned notes. The decision to allow indefinite concurrent circulation of all versions provides stability and clarity for all stakeholders in the Nigerian economy.
The CBN’s emphasis on the validity of all note versions demonstrates a practical approach to currency management, acknowledging the importance of maintaining multiple valid tender options to ensure smooth economic transactions. This stance particularly benefits rural areas and informal sectors of the economy, where access to banking services may be limited.
By explicitly stating that all versions remain legal tender without any deadline, the CBN has effectively removed any basis for rejection of old notes by businesses or individuals. This clarification is particularly important for market traders, small businesses, and everyday citizens who conduct mostly cash transactions.
The comprehensive nature of the announcement, covering not only the controversial redesigned notes but also commemorative editions and previous designs, shows the CBN’s commitment to maintaining a clear and inclusive monetary policy. This approach helps prevent any potential discrimination against specific note versions in commercial transactions.
The timing of this clarification is particularly significant as it comes during a period of economic adjustments and reforms in Nigeria. By ensuring stability in the currency circulation system, the CBN provides one less uncertainty for businesses and individuals to worry about as they navigate other economic challenges.
The statement serves as a reminder of the apex bank’s role in maintaining order in the monetary system and its responsibility to provide clear, accurate information to the public. This proactive communication strategy helps prevent panic and confusion that could arise from misinformation about currency validity.
Moving forward, this clarification should help facilitate smoother business transactions and reduce any hesitation in accepting older versions of these denominations. The CBN’s decisive stance on this matter provides a solid foundation for continued economic activities without the complications of currency validity concerns.
