The House of Representatives and the Central Bank of Nigeria (CBN), yesterday, disagreed on the deadline for the validity of old naira notes.
While the House at plenary asked the apex bank to issue more new N200, N500 and N1,000 notes and begin the gradual withdrawal of the old notes from circulation before the deadline of December 31, 2024, the CBN said there was no such deadline.
The Green Chamber has also urged the apex bank to order commercial banks to, forthwith, stop cash payments to their customers with old N200, N500 and N1,000 notes and engage in gradual mopping up of the old notes.
The resolutions of the House followed the adoption of a motion of urgent national importance moved by Afam Ogene at plenary in Abuja.
Moving the motion, Ogene expressed concerns that the CBN has not shown any sign of sensitisation or kick-started any awareness programme to remind Nigerians of the important economic policy to make them prepare for the deadline of December 31, 2024.
He said further that Nigerians would be plunged into more chaotic situations than what happened in February 2023, when the old N200, N500 and N1,000 notes shall cease to be legal tender and medium of exchange for goods and services from January 1, 2025.
He said: “Recall the hardship, frustration, controversy and chaotic situation occasioned by the Central Bank of Nigeria, CBN’s change of currency in 2023, that affected the validity of the old N200, N500 and N1,000 notes at the time that resulted in litigations;
“The current scarcity that led to untold hardship in the nation as a result of the CBN’s inability to supply new versions of the changed currency notes.
“Going by the Supreme Court’s subsequent ruling and order, the N200, N500 and N1,000 notes shall cease to be legal tender, medium of exchange for goods and services in Nigeria, and shall also cease to be in circulation from January 1, 2025.’’
The House, after its ruling, directed the committee on banking regulations to ensure compliance and report back within 21 days.
But the CBN, on its part, said there was no such December 31, 2024, deadline for the validity of the old naira notes.
Acting Director, Corporate Communication, Mrs. Sidi Hakama, who stated this in a statement, titled, “No deadline on circulation of old series of naira notes,’’ said: “The attention of the Central Bank of Nigeria, CBN, has been drawn to discussions at different fora suggesting that the old series of the N200, N500, and N1,000 banknotes shall cease to be legal tender on December 31, 2024.
“We wish to state categorically that such claims are false and calculated to disrupt the country’s payment system.
“For the avoidance of doubt, the order of the Supreme Court of Nigeria on Wednesday, November 29, 2023, granting the prayer of the Attorney-General of the Federation and Minister of Justice to extend the use of old Naira banknotes ad infinitum, subsists.
“Similarly, the CBN’s directive to all its branches to continue to issue and accept all denominations of Nigerian banknotes, old and re-designed, to and from deposit money banks
It will be recalled that the Supreme Court ordered that the old series of N200, N500 and N1,000 banknotes shall continue to be legal tender alongside the redesigned versions.
Accordingly, all banknotes issued by the Central Bank of Nigeria (CBN) will continue to remain legal tender indefinitely.
“We, therefore, advise members of the public to disregard suggestions that the said series of banknotes will cease to be legal tender on December 31, 2024. We urge Nigerians to continue to accept all Naira banknotes (old or redesigned) for their day-to-day transactions and handle them with the utmost care to safeguard and protect their lifecycle.
“Furthermore, the general public is encouraged to embrace alternative modes of payment, echannels, in order to reduce pressure on the use of physical cash.”
