Home Business Banking & Finance Naira notes: CBN issues directive to banks, as Supreme Court rules

Naira notes: CBN issues directive to banks, as Supreme Court rules

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The Central Bank of Nigeria (CBN) has issued a fresh directive to all banks and Nigerians regarding accepting old and redesigned Naira notes, according to a statement on Wednesday by its Acting Director of Corporate Communications, Mrs. Sidi Hakama.

This is as the Supreme Court ruled also on Wednesday that the old Naira denominations of N200, N500 and N1,000 notes continue to co-exist with the new notes till further notice.

The court maintained that the old and new notes should remain as legal tender beyond 31st December until the Federal Government puts a process in place for their replacement or redesign after due consultation with relevant stakeholders.

Last 3rd March, the apex court restrained the CBN from giving effect to the deadline on the use of old notes.

On 14th November, the CBN extended the validity of the old N200, N500 and N1,000 notes indefinitely.

The CBN introduced the redesigned  N200, N500 and N1.000 denominations in October 2022 and set deadlines were set for the old design of these denominations to cease as legal tenders.

On Wednesday, the CBN 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.

Hakama said:“For the avoidance of doubt, the Supreme Court ordered that the old versions of the N200, N500 and N1,000 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 redesigned) for their day-to-day transactions and handle these banknotes with the utmost care, to safeguard and protect the lifecycle of the banknotes

“The CBN further urged Nigerians to embrace alternative modes of payment, e-channels in order to reduce pressure on the use of physical cash”.

The bank emphasised that all bank notes, including old and redesigned ones, remain legal tender.

The CBN asked all its branches to continue to issue and accept all denominations of Nigerian notes.

“To avoid doubt, the Supreme Court ordered that the old versions of N200, N500 and N1000 banknotes, alongside the redesigned versions, shall continue to be legal tender.

“Accordingly, in line with Section 20(5) of the CBN Act 2007, all banknotes issued by the Central Bank of Nigeria will remain legal tender indefinitely.

“Members of the public are enjoined to continue to accept all Naira banknotes(Old or redesigned) for their day-to-day transactions and handle these banknotes with utmost care to safeguard and protect the lifecycle of the banknotes”, the apex bank said.

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