CBN: Supreme Court Validates Old N200, N500, N1,000 Notes

To further ensure liquidity in the economy, the Central Bank of Nigeria, CBN, had directed its branches across the country to continue to issue and accept old and new naira notes.

The apex bank said in a statement on Wednesday that the old and new N200, N500, and N1000 banknotes are still legal tender, and must be used for daily transactions in the country.

The state signed by the bank’s Acting Director, Corporate Communications, Sidi Ali Akana comes amidst complaints of naira scarcity in some parts of the country, blamed on the panic withdrawal by some Nigerians, who believe that the Supreme Court judgment outlawing the validity of old naira notes by the end of the year will come to force.

In response, the CBN said last week that the Attorney General of the Federation and Minister of Justice had approached the apex court to review the judgment, saying the old and new naira notes remained legal tender.

The prayer has now been granted, the CBN stated.

The statement issued yesterday is believed to be a reinforcement of the CBN position on the issue, particularly as the festive period is approaching.

The statement said, “Following the order of the Supreme Court on Wednesday, November 29, 2023, granting the prayer of the Minister of Justice and Attorney-General of the Federation to extend the use of old Naira banknotes ad infinitum, the Central Bank of Nigeria (CBN) has 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 (DMBS).

“For the avoidance of doubt, the Supreme Court ordered that the old versions of N200, 500, and N1,000 banknotes 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 re-designed) for their day-to-day transactions and handle these banknotes with the utmost care, to safeguard and protect the lifecycle of the banknotes.

“Furthermore, the general public is encouraged to embrace alternative modes of payment, e-channels, in order to reduce pressure on the use of physical cash.”