Amidst the biting scarcity of the naira notes, the Central Bank of Nigeria, CBN has extended the validity of the old N200, N500 and N1,000 notes indefinitely.
The apex bank stated this on Tuesday in a statement signed by the bank’s Director, Corporate Communications, Isa AbdulMumin, stressing that it took the action to forestall fresh naira scarcity similar to the one experienced early this year due to the naira swap policy.
The extension comes on the crest of the naira scarcity being experienced in some parts of the country since the beginning of the month.
The magazine had reported that the naira scarcity, which began early this month had taken a serious toll on businesses in some states in the northern part of the country, and is now spreading fast into the south.
The latest CBN’s action, analysts insist, contravenes the judgment of the Supreme Court in March this year which said the old naira notes must stop being legal tender by the end of the year.
The Yemi Cardoso-led apex bank said it’s working to vacate the order.
The CBN said in the statement: “Without prejudice, the Central Bank of Nigeria wishes to inform the general public of its desire to extend the legal tender status deadline of the old design of N200, N500 and N1,000 denominations; ad infinitum.
“This is in line with international best practices and to forestall a repeat of earlier experiences.
“Thus, all banknotes issued by the Central Bank of Nigeria, in accordance with Section 20(5) of the CBN Act 2007, will continue to remain legal tender, ad infinitum. even beyond the initial December 31, 2023, deadline.
“The Central Bank of Nigeria is working with the relevant authorities to vacate the subsisting court ruling on the same subject.
“Accordingly, all CBN branches across the country will continue to issue and accept all denominations of Nigerian banknotes, old and redesigned, to and from deposit money banks.
“The general public is enjoined to continue to accept all Naira banknotes (old or redesigned) for day-to-day transactions and handle these banknotes with utmost care, to safeguard and protect the lifecycle of the banknotes.
“Also, the general public is encouraged to embrace alternative modes of payment, e-channels, for day-to-day transactions.”
The latest move by the CBN, is therefore, believed to be a bold step to address the problem of scarcity, particularly following suggestions that the old banknotes would seize to be legal tender by December 31 this year.
This is the fourth time the apex bank had refuted the claim within two weeks.
