The House of Representatives and the Central Bank of Nigeria (CBN) are currently at odds over the validity of old naira notes, specifically the old N200, N500, and N1,000 denominations. During a recent plenary session, the House urged the CBN to begin gradually phasing out these old notes, aiming to fully withdraw them by December 31, 2024. They further advised banks to immediately cease dispensing the old notes in cash transactions and focus on circulating the redesigned versions.
Afam Ogene, who moved the motion, highlighted concerns that the CBN had not conducted any public sensitization regarding the deadline, raising fears of potential chaos akin to the naira swap crisis of early 2023. The House has tasked its banking regulations committee to monitor the CBN’s compliance and report back within 21 days.
However, the CBN contradicted this directive, with Acting Director of Corporate Communication, Mrs. Sidi Hakama, stating that there is no such deadline. She pointed to a Supreme Court ruling from November 2023, which extended the use of old naira notes indefinitely. According to the CBN, both the old and redesigned naira notes will remain legal tender, as per the court’s order, to avoid disrupting the country’s payment systems.