The House of Representatives and the Central Bank of Nigeria (CBN) are at odds over the validity of old naira notes, with the House pushing for a December 31, 2024 deadline to phase out old notes, while the CBN insists no deadline exists.
During a plenary session, the House urged the CBN to issue more of the redesigned N200, N500, and N1,000 notes and gradually withdraw old notes from circulation before year-end. They also asked the CBN to instruct commercial banks to halt cash payments in old notes.
Representative Afam Ogene, who moved the motion, warned that without adequate sensitization from the CBN, Nigerians could face a chaotic situation similar to February 2023, when the currency redesign disrupted the economy. “Recall the hardship, frustration, and controversy in 2023 due to the CBN’s policy,” Ogene stated, citing the Supreme Court’s ruling that old notes remain legal tender until further notice.
The House has directed its banking regulations committee to ensure compliance with this recommendation, with a report due within 21 days.
However, the CBN maintains there is no deadline for old note circulation. In a statement titled, “No Deadline on Circulation of Old Series of Naira Notes,” CBN Acting Director of Corporate Communication, Mrs. Sidi Hakama, clarified: “The attention of the Central Bank of Nigeria has been drawn to discussions suggesting a December 31, 2024, deadline for old notes. We wish to categorically state that such claims are false and intended to disrupt the country’s payment system.”
Referencing the November 2023 Supreme Court ruling that extended old notes’ usage indefinitely, Hakama added, “We urge Nigerians to disregard any suggestion of a deadline and continue to use all naira denominations for transactions.”
The CBN also advised the public to embrace electronic channels to ease pressure on physical cash and ensure note durability.
